5 Crucial Steps After a Car Accident Where You May Be At Fault

In a past life, I worked as a claims adjuster for insurance companies. It was such an unpleasant experience that I made a vow: I would NEVER represent an insurance company again. For the last 14 years, I’ve kept that promise. Now, I exclusively represent people who have been injured in car accidents and need help navigating the complex world of insurance claims.
Many people mistakenly believe that my clients and I are eager to sue. That’s simply not true. My goal is to empower my clients to receive fair compensation from insurance companies, not to drag anyone through lengthy lawsuits.
However, if you find yourself on the other side of the table – the person deemed responsible for the accident – I want to offer some guidance. It’s crucial to understand that the insurance company representing you sees you as a means to an end. They are primarily concerned with protecting their own bottom line, and you might be at a disadvantage without realizing it.

Here are 5 essential things you need to know to protect yourself:

1. In personal injury claims, the injured party can’t sue the insurance company directly.

The lawsuit has to be filed against you, the individual allegedly at fault. As much as I wish we could directly sue the insurance giants, the current legal system doesn’t allow it. Despite efforts from lawyers like myself to change this, insurance companies fiercely defend the status quo, using their vast resources to maintain their advantage.

2. The insurance company will assign you a lawyer, and that lawyer inherently has a conflict of interest.

It’s impossible to serve two masters equally. These defense lawyers build their careers and receive lucrative referrals from insurance companies. Do you think they’re going to risk jeopardizing those relationships? Absolutely not. Their priority is to keep the insurance company happy, which often means saving them money, even if it comes at your expense.
For example, let’s say you caused an accident and have insurance coverage with a limit of $100,000. The injured party might be willing to settle for that full amount. However, the insurance company and their lawyer, aiming to minimize their payout, offer the injured party a significantly lower sum. If this offer is rejected and the case goes to trial, you could end up facing a judgment exceeding your policy limit. In such cases, the insurance company prioritizes its own financial interests over fulfilling its obligation to protect you, leaving you with the burden of paying the excess judgment.

3. It’s highly unlikely you’ll have to pay anything out of pocket.

Unless the scenario described above plays out – where the insurance company refuses to offer the injured party the full policy limit – the chances of you personally paying are slim. In my extensive experience handling thousands of car accident cases, I’ve only had one instance where the defendant had to pay a judgment that went beyond their insurance coverage.

4. The insurance company’s lawyer might pressure you to change your story, even if it’s not in your best interest.

For instance, if you rear-ended someone and admitted fault at the scene, the defense lawyer might still try to deny fault in their legal response. Their aim is to shield the insurance company, even if it puts your assets at risk. Imagine sitting on a jury and listening to someone who is clearly at fault trying to convince you otherwise, all because they’re parroting their lawyer’s instructions. It’s a tactic that rarely works and often backfires, making the defendant appear untrustworthy and deepening the jury’s skepticism. If you find yourself in this situation, remember that you have the right to request a different defense lawyer. You are ultimately in control of your case.
This point is best illustrated by a personal experience: I rear-ended someone due to my own inattention. I immediately took responsibility, apologized to the other driver, and even encouraged him to seek medical attention. I admitted fault to the police and followed up with the other driver, ensuring he received proper care. I even paid for his meal when I encountered him at a restaurant. However, his interactions with my insurance company were far from smooth. Frustrated by their treatment, I ultimately advised him to sue me directly.
After being served with the lawsuit, my assigned defense lawyer – someone I respected – informed me that he intended to deny fault and shift some blame onto the other driver. I refused outright. I reminded him that as the insured, I was calling the shots and instructed him to admit fault. I also wrote to my insurance company, demanding they settle the lawsuit promptly, even if it meant paying the full policy limit. I wanted them to do their job and protect me. After some back and forth, they eventually settled the lawsuit.
It’s disheartening that it often takes legal action and firm demands to get insurance companies to fulfill their obligations.

5. The insurance company and their lawyer will likely keep the extent of your coverage confidential. 

If you’ve caused significant injuries, consider seeking independent legal counsel to represent your personal interests alongside the insurance-appointed lawyer. This independent lawyer will prioritize your well-being and asset protection, not the insurance company’s financial gain. They can communicate with your insurance company, urging them to settle the case and secure your release, even if it requires paying your full policy limit. Remember, you’ve paid for that coverage, and they’re obligated to honor it.
It’s natural to feel defensive and upset when you’re sued. However, try to remain calm and objective. You won’t be facing jail time, and aside from the initial accident, the lawsuit itself is largely beyond your control. Since the accident, your insurance company has been steering the ship, and their actions (or inactions) may have contributed to the lawsuit. I’ve seen countless instances of insurance adjusters behaving poorly, refusing to pay medical bills, shortchanging lost wages, making and breaking promises, and generally making life difficult for those involved.
Here are the steps you should take if you’ve been sued:

1. Contact your insurance adjuster immediately and provide them with a copy of the lawsuit. You have a duty to cooperate with your insurance company.
2. Inquire about payments for the injured party’s medical bills and lost wages. If the adjuster claims they can’t pay until the case concludes, point out that this policy might be the very reason you’re being sued. Insurance companies often delay payments, causing hardship for injured parties who struggle to afford their medical bills and make ends meet.
3. Confirm your liability policy limits with the adjuster. Make it clear that you expect them to be prepared to pay the full amount if necessary.
4. Find out what the insurance company has offered to settle the case and inquire about the total medical bills and lost wages incurred by the injured party. Some insurance companies are notorious for making lowball offers, hoping to exploit the situation to their advantage.
5. Stay informed by asking your insurance adjuster for regular updates on the case’s progress.
6. If you were at fault for the accident, own it. Don’t let your lawyer shift blame if you know it’s not accurate. I’ve witnessed countless attempts by insurance defense lawyers to manipulate the truth, which ultimately harms their clients.
7. Don’t take the lawsuit personally. Remember, the insurance company had the opportunity to settle and chose not to. Consider how you’d feel if your loved one was injured, and the other party’s insurance company tried to deflect blame onto them.
8. Seriously consider seeking independent legal counsel to protect your individual interests.
9. Find out how much business your assigned defense lawyer’s firm receives from your insurance company and their hourly billing rates for insurance-related cases. You have the right to this information.

If you’ve been injured in a car accident in Toronto, Vaughan, or Mississauga and have questions, please don’t hesitate to contact me. My commitment is to representing individuals against insurance companies, but I’m always willing to share advice and guidance, even if you haven’t hired an attorney yet.