Small Claims: Suing the Driver after their insurance denies your claim?

Question

If insurance denies the claim can you then try to sue the driver?

I was in an accident in June and my insurance denied the other driver's claim, now I get a letter threatening to sue me for $1400.

Can they do this?

Also, it's the other driver's insurance who sent me this letter, after denying my claim.

Wouldn't this be a small claims issue? Between myself and the other driver? (Though I did think having insurance protected me from this.)

Instead, this letter is from a lawyer, threatening to file suit and potentially suspend my license, if "judgment is entered."

I'm really hoping this is just a scare tactic. I have emailed my insurance but I have to wait till tomorrow to call.

I'm in TX, if that matters.

My insurance denied the claim because the other driver was at fault. Specifically, in their denial, my insurance said I "was not primarily responsible for this occurrence."

I say, it was entirely her fault, she was attempting an illegal turn and she hit me.

Her insurance also denied my claim but my insurance told me not to contact them. Later, my insurance sent me a check, for my damages.

My estimated repairs will cost $750, while hers are supposedly $1400. This was a finder-binder, she had preexisting damages and she was at fault. I had really hoped this was all over.

I just didn't think it was common practice to sue the Driver after their insurance denied your claim.

Yes, both claims were denied. This is my first accident and everyone I've spoken to (friends and family) told me to expect that. Including my insurance agent.

Another peculiar thing, she has an older car, I think a 96. Would that car even have full coverage? If not, why then is her insurance pursuing this? In the letter, the lawyer seems to be acting on behalf of the insurance, not the driver.

Two police officers responded. She called, though she was the one not cooperating -- she had refused to give me any contact information. The officers had us fill out forms, which we exchanged. They did not file a report, I asked and they said it didn't merit a report.

Answer 1

Sure they can. Will they win? Maybe, it depends on the case they can put forward, and the reasons for your insurance company denying the claim. Let them sue, and let the chips fall where they may, be prepared with the full details when you go to court. Take all paperwork, details of the accident, details of any charges that may have been laid, etc.

Edit
Are you saying both your companies denied both your claims? That sounds odd. Also, the lawyer can't have your driver licence suspended even if you lose. You licence can be suspended for unpaid tickets, for debts to the state, not for debts awarded to individuals by small claims court.

Answer 2

I wouldn't go that way small claims is that small claims. Been there and done that. In small claims if you win. They have 10 years to pay and if they don't you can go back an refile that claim for another 10 years. It does appear on there credit as small claims that's the only good thing about that. Get advice from an attorney in your city. Why did your insurance denied the claim.

Answer 3

If she doesn't want to pursue this, there's nothing you can do. It's her decision, and like you said... she's given up. In a rear-end collision, there isn't much the rear-ending driver can do to prove the accident wasn't their fault. Unless the vehicle in front was backing up, it's the rear-ender's fault every time no matter what. His insurance company knows that perfectly well, but they're doing the age old trick of denying the claim and hoping the not at-fault driver is naive enough to give up, which evidently your sister is. She could get a lawyer (this is why lawyers were invented) and get the matter straightened out, and it would probably work out fairly well. But like you said... she doesn't want to do that.

Answer 4

You did not mention which country are you from. I believe different country will have different law.

In Singapore, there are certain accident not cover by insurance, such as accident due to drunk driving. For such case, the insurance company will not pay for the damages. The other driver will have to file a small claim (if amount is less than S$10,000) against the driver who is at fault.

Answer 5

Ok just had this happen to me. No comprehensive coverage.. other drivers fault from pa. I live in nj. Filed a complaint to insurance dept of both states governments. Keep calling both insurers all day and dont accept until its Paid in Full..took 3-4 weeks for me. Next step is sue driver.

Answer 6

1st..Who's fault was accident? Was a Ticket issued by a policeman? Was police even called??if not WHY,(bet you will next time) If accident was her fault,,she can BLUFF all she wants. Also YOUR insurance should be advising & helping in this matter (they have LAWYWERS too)As part of being a policy holder they should help YOU in this matter aswell as fix your car. Do you have full coverage?? Yes she MAY have full coverage on her vehicle. Personally I buy nothing but,,no matter the age of the vehicle,,mine is 21 years old & has FULL coverage. In Oklahoma/USA

Answer 7

Yes, but don't sweat. It's a last ditch effort to get some money out of you. Your insurer will likely defend you in court (if it even gets that far). Call your insurance adjuster and fax him/her a copy of the letter.

Answer 8

Every liability policy I've ever reviewed begins with the words "we will pay all claims for which you become legally liable arising from the use of your covered auto.".

Your mission (should you decide to accept it) is to make the other guy "legally liable".

If a small claims judge finds in your favor, the other guy becomes "legally liable", and this triggers coverage under his policy, and you are the one with the insurable interest under his liability policy.

In other words "cha-ching!".

Hurry hurry hurry, you're facing a one year statute of limitations.

Answer 9

yes you can sue anyone for anything now days but collecting on it is another thing,chances are they wont win or will back out of it,i wouldn't worry too much about it,small claims court is jammed with cases like this every day,good luck on it.

Answer 10

Yes you can sue for small claims but sounds like they are just trying to get out of it. Get in there and fight for it.