Can I be sued if my insurance refuses payment to the other driver?
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Can I be sued if my insurance refuses payment to the other driver?
I was involved in a car accident that the police determined to be 50/50 at fault. Neither car had collision. I just received a letter from the gentleman I was in the accident with stating that my insurance did not pay and demanding I pay his costs or we will go to court. Does he have a case?
Asked on September 28, 2011 under Accident Law, New Jersey
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
He *may* have a case...but he definitely has the right to sue you and see if he can make his case. Your insurer's decision to not pay is not a court determination of fault or otherwise legally binding; it's just your insurer saying that it doesn't think he has a good enough case to receive compensation, so they won't pay him voluntarily. However, if he disagrees, he has the right to sue you, to try to establish in court his entitlement to compensation; you can, of course, defend yourself--and your insurer should be obligated, under the policy, to step in and provide that defense (e.g. provide or pay for the lawyer) and, if there is an adverse determination (e.g. he wins money) to pay the claim, at least up to the maximum value of the policy.
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