What should I do about auto insurance company lawsuits?

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Things to Remember...

Getting the right auto insurance is one of the toughest choices one has to make. Before purchasing anything, research the insurance industry and how it works.

Having auto insurance can help you in avoiding lawsuits and provide safety to you and your vehicle.

It’s very common to find people filing lawsuits against companies and individuals to gain some kind of monetary compensation.

Before purchasing car insurance, make sure you research whether a company has pursued unjust lawsuits against previous clients. 

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How do I handle auto insurance company lawsuits?

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No matter how good of a driver you are, you may find yourself in the unfortunate case of an accident at some point in your driving career.

The best protection against car insurance lawsuits is to understand the types of auto insurance coverage that are available.

Here are some tips to avoid auto insurance company lawsuits:

  • Personal Insurance and Liability Coverage Every driver should have proper insurance and liability coverage. It is best to get insurance that includes property damage liability insurance and bodily injury; this will protect your assets if you get in an accident.
  • Choose Umbrella Policy  Most people are unaware of the benefits of an umbrella policy and prefer the standard auto insurance policy alone. Generally, umbrella policies are costly but they provide extra protection for your important assets against any lawsuit.
  • Settle out of the Court It is always best to settle outside the court. Generally, lawsuits settled in courtroom lead to higher financial charges or compensation. The insurance company is going to pay a certain part of the settlement amount, so it is best to settle.
  • No Threshold Policy  In most cases, people avoid lots of options just to keep the premium lower. A No Threshold option gives you the choice of getting in front of a jury in case of getting injured by another driver.
  • Keep an Attorney by Your Side It is advised to have an expert attorney if you feel like you may be sued for an accident. Some insurance companies will try to get you to settle for a smaller amount. Having an attorney by your side will make sure you are given a fair shot.

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Important Steps for Handling Current Lawsuits

In the previous section of the article, we discussed precautionary tips to manage lawsuits involving auto insurance companies. In this section, we are going to discuss some steps once you are sued.

  • Make sure to inform your own auto insurance company at the earliest time about any pending lawsuit against you. Usually, you will be notified when a lawsuit is filed against your name and telling your insurance company will give you a better chance of winning the case.
  • In case the opposing party calls you, do not answer their questions and clearly say no to discuss any legal issues. It is best to refer them to your insurance company. You have the right to refuse to answer them.
  • Generally, you will receive a letter involving the details of a lawsuit from the opposition. Make sure to forward these letters of communication to your insurance company and take their help in providing proper replies.
  • In some case, your insurance company may ask you for submitting a standard claim. You should discuss the matter in detail with them and take your decision accordingly.
  • If your insurance company and attorney are unable to settle the lawsuit outside the court and the case goes to trial, you will be required to submit a deposition.

Keep in mind that your insurance company has trained professionals for taking care of their client and company’s financial interest. So be sure to consult your insurance company before making any moves in such situations.

Avoid companies that have a history of lawsuits by getting auto insurance from a reliable company. Do your research ahead of time to ensure you have the best coverage.

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