Can Someone Sue You After Insurance Pays?

The aftermath of a car accident, including the settlement process, can be difficult and frustrating. Many people involved in car accidents feel a sense of relief when the insurance settlement is paid out, as they perceive this to mean there is no possibility of further litigation. Though this is typically true, it is still possible for someone to sue you even after insurance pays. 

Our dedicated team of personal injury and auto accident attorneys for the Rio Grande Valley have compiled a helpful guide to explain how, when, and why you may still be sued even after agreeing to an insurance settlement. 

When can you be sued after settling with the insurance company?

Generally, auto accident victims cannot file a lawsuit after agreeing to settle their claim, but there are exceptions to this rule. One example of this occurs if it can be proven that the defendant was coercive or acted fraudulently, or if the settlement was tainted in some way. This would require wrongdoing on the part of the defendant’s legal counsel, which is rare.

Another situation that could result in a lawsuit after a settlement is if you are found to be an additional at-fault party in an auto accident case that has already been partially settled. This typically occurs when the victim was not previously aware that there was another person involved in the accident before settling with their insurance company. 

In the event that you are sued as an additional responsible party in an accident, it’s important to look for an accident or personal injury attorney near you to ensure that you’re protected legally. Cases with multiple at-fault parties and cases involving previously agreed-upon settlements are more complex and require experienced legal representation. 

When can you not be sued after an insurance settlement payout? 

Generally, agreeing to a settlement means signing agreements that release the at-fault parties from further liability or litigation in relation to the accident. This is particularly common in auto accident cases and personal injury cases involving insurance companies, as the insurers need some kind of assurance that they will not be sued again after settling. Otherwise, they have no incentive to pay out the settlement in the first place. 

Agreements such as these are typically legally binding and release all liability for the defendant and the insurance company — even if the victim learns later that their accident was worth more. That is why it’s extremely important for all parties involved in accidents to carefully review all agreements and documents before signing them. A knowledgeable auto accident or personal injury attorney near you can help you understand the complexities of legal documents and ensure your best interest is prioritized during the settlement process. 

The Lopez Law Group Can Help

With decades of combined experience, the auto accident and personal injury attorneys at The Lopez Law Group are here to help residents of the Rio Grande Valley. We have experience with over 1,500 personal injury cases throughout South Texas and are committed to ensuring that even the most complex cases are handled with professionalism and care. 

We make the settlement process easier by helping those involved in auto accidents and personal injury cases understand their unique situation and legal rights. We proudly offer free, no-obligation consultations in both English and Spanish. 

Our Texas-based car accident law firm is proud to serve McAllen, Weslaco, Mission, Laredo, Edinburg, Corpus Christi, Brownsville, Harlingen, Houston, Tyler, Spring, and other locations throughout the state. Contact us online or call (956) 968-7800 to schedule your free case consultation.