I Have Insurance, Why Am I Being Sued for a Car Accident in Oklahoma?

Clayton T. Hasbrook

Written by Clayton T. Hasbrook. Last modified on June 4, 2024

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Question: I was recently served with court papers for a car accident, even though the person I hit filed a claim with my insurance company. Why am I being sued directly instead of my insurance company? Isn’t this why I pay for insurance?!?

Clayton’s Answer: In Oklahoma, when someone files a lawsuit related to a car accident, they are required to name the driver as the defendant, even if the driver has insurance coverage. This legal requirement is in place for several key reasons:

  1. Legal responsibility: As the driver, you are the one who is alleged to have caused the accident, and therefore, you are legally responsible for any resulting damages or injuries, not your insurance company.
  2. Insurance contract: Your insurance company’s obligation to defend and indemnify you stems from the insurance contract between you and your insurer. The injured party is not included in this contract.
  3. Court jurisdiction: Oklahoma courts have jurisdiction over you as the driver who caused the accident within the state, but they may not have jurisdiction over an out-of-state insurance company.
  4. Jury perception: If the defendant is an insurance company rather than an individual, juries might be more inclined to sympathize with an injured plaintiff.

Rest assured that even though you are named as the defendant, your insurance company will typically assign a defense attorney (oftentimes a paid employee of the insurance company) to your case and cover the costs of the lawsuit up to the limits of your policy. It is essential to promptly notify your insurance company and fully cooperate with them throughout the legal process. They will work diligently to protect your interests and resolve the case on your behalf.

The Most Common Reason a Car Accident Lawsuit is Filed

The most common reason we (representing plaintiffs) have to file a lawsuit is because the insurance company isn’t fairly evaluating the claim and is not offering enough money to settle the claim. It depends on the experience of the adjuster, but I recently had a case where the adjuster said, “We only consider clear liability as one involving a rear-end collision or if the claimant’s car was parked. Even though our insured ran the red light, we’re often 60% for the vehicle.”

Liability in Car Accidents

In most car accidents, liability is a key issue. Liability refers to the legal responsibility for the accident and the resulting damages or injuries. Oklahoma follows a “fault” system for car accidents, meaning the party found at fault for causing the accident is responsible for paying damages to the other party.

Negligence and Fault

Negligence is used to determine liability. Negligence occurs when a person fails to exercise reasonable care, resulting in harm or damage to another person or their property. In car accidents, negligence can include:

  • Speeding
  • Distracted driving (e.g., texting while driving)
  • Running a red light or stop sign
  • Failing to yield the right of way
  • Driving under the influence of alcohol or drugs

Minimum Insurance Requirements in Oklahoma

Why Am I Being Sued for a Car Accident in Oklahoma?Oklahoma law requires all drivers to carry a minimum amount of liability insurance coverage (47 O.S. § 7-103):

  • $25,000 per person for bodily injury
  • $50,000 per accident for bodily injury
  • $25,000 per accident for property damage

However, these minimum limits may not cover all damages and injuries caused by a serious accident.

Reasons You Can Be Sued Despite Having Insurance

There are several reasons why you may face a lawsuit even with insurance coverage:

  1. Insufficient Coverage: If the damages exceed your policy limits, the injured party may sue you personally to recover the remaining amount.
  2. Disputed Liability: If there is a disagreement between your insurance company and the other party regarding fault, the injured party may file a lawsuit to prove you were more responsible than your insurance company admits.
  3. Bad Faith Claim Handling: If your insurance company fails to handle the claim properly, delays or denies payment unreasonably, or does not provide an adequate defense, the injured party may sue both you and your insurance company.
  4. Excluded Coverage: Some policies have exclusions or limitations that may not cover certain types of accidents or damages, leaving you personally responsible.
  5. Disputes on What the Claim is Worth: The insurance company evaluates the claim differently than the claimant.

What if the other party’s damages exceed my insurance limits?

If the damages and injuries suffered by the other party exceed your policy limits, you may be personally responsible for paying the remaining amount. Carrying adequate liability coverage is important.

Can I be sued even if I wasn’t entirely at fault for the accident?

Yes, in Oklahoma, you can be sued even if you were only partially at fault. Oklahoma follows a modified comparative negligence rule, which means a party can recover damages as long as they are not more than 50% at fault (23 O.S. § 13).

What to Do If You Are Sued

If you are sued after a car accident, despite having insurance, take these steps:

  1. Notify Your Insurance Company: Contact your insurance provider immediately and inform them about the lawsuit. They are obligated to provide you with a legal defense under your policy terms.
  2. Cooperate with Your Attorney: Your insurance company will assign an attorney to defend you. Provide them with any information or documentation related to the accident and cooperate fully.
  3. Consider Seeking Independent Legal Advice: If you have concerns about your case or how it is being handled, consult with an independent attorney for a second opinion.
  4. Gather Evidence: Collect evidence related to the accident, such as police reports, witness statements, photos, and medical records. This information can help support your case.

What happens if my insurance company refuses to settle the claim?

If your insurance company fails to settle the claim in good faith, the other party may file a lawsuit against you directly. In this case, you may have a bad faith claim against your insurance company for failing to protect your interests.

How long does the other party have to file a lawsuit after the accident?

In Oklahoma, the statute of limitations for filing a personal injury lawsuit after a car accident is generally two years from the accident date (12 O.S. § 95). However, there are exceptions, so consult with an attorney to determine the specific deadline in your case.

What if I can’t afford an attorney to defend me in the lawsuit?

If you have liability insurance coverage, your insurance company has a duty to defend you in the lawsuit. They will assign an attorney to represent you at no additional cost. However, if you are being sued for damages beyond your policy limits, you may want to hire your own attorney to protect your personal assets.

Can I countersue the other party for my own damages and injuries?

Yes, if you believe the other party was at fault and you suffered damages and injuries, you may be able to file a counterclaim against them in the lawsuit. Your attorney can advise you on the best course of action based on your case’s specific facts.

What if the other party’s insurance company contacts me directly?

If the other party’s insurance company reaches out to you directly, refer them to your insurance provider or attorney. Do not provide statements or sign documents without consulting your legal representative, as this could harm your case.

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This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by Founding Partner, Clayton T. Hasbrook who has years of legal experience as a personal injury lawyer. Our last modified date shows when this page was last reviewed.