Who Pays When You Sue in a Car Accident?

Life changes quickly when you’ve been injured in a car accident that wasn’t your fault. In a flash, you’re suddenly suffering from physical injuries and emotional trauma. You may face financial distress from missed work and mounting medical bills. There’s confusion, frustration, and anxiety.

It’s overwhelming. And it’s unfair.

If you’re thinking of seeking compensation for your damages, you may wonder who pays when you sue in a car accident.

An experienced Denver car accident lawyer can answer any questions you have about filing a car accident lawsuit, including what sources of compensation are available to you.

Schedule a Free Consultation Today!

Filing a Car Accident Lawsuit

After a car accident, you can seek compensation for your injuries and damages. However, the journey from accident to fair compensation isn’t always straightforward.

Insurance companies tend to get involved quickly in auto accident cases because they have interests to protect, and their interests usually don’t align with yours. Many car accident lawsuits begin as insurance claims that result in failed attempts to settle because the at-fault party’s insurance company refused to settle for a fair amount.

There are other reasons why you might need to file a lawsuit after a car accident. If your car accident lawyer tells you that your best option to recover the damages you deserve is to sue, you must start by determining what parties you can hold liable.

Who May Be Held Liable in a Car Accident?

Determining liability is a key aspect of any car accident lawsuit. Depending on the circumstances of your case, various parties may be held responsible:

The Other Driver or Drivers

In most car accident cases, the driver who caused the collision is the liable party. Their auto insurance typically covers damages up to the policy limits. However, if multiple drivers contributed to the accident, they might share liability.

Colorado follows a modified comparative negligence rule, meaning you can recover damages if you’re less than 50% at fault for the accident but your compensation may be reduced by your percentage of fault.

If damages exceed the at-fault driver’s policy limits, your car accident attorney may be able to pursue additional avenues for compensation, such as filing a lawsuit against the insurer or other potentially liable parties.

Uninsured Motorist

When the at-fault driver has been driving without insurance, you may need to turn to your own insurance policy’s uninsured motorist (UM) coverage. This protection applies when the responsible party can’t pay.

In Colorado, auto insurance providers must offer UM coverage, though you can reject it in writing. If you do have this coverage, you’ll file a claim with your insurer, who then covers damages the at-fault driver would have paid under their insurance if they had it.

If you are ever caught in this situation, your car accident lawyer will negotiate with your insurance company for your fair compensation. If you don’t have UM coverage, your lawyer can discuss the other options.

Hit and Run Driver

Hit-and-run accidents present unique challenges. If the at-fault driver can’t be identified, you’ll likely need to rely on your own insurance coverage. This might include your uninsured motorist coverage, personal injury protection (PIP), or medical payments coverage.

Your car accident attorney can explore all possible avenues for compensation if you or a loved one were injured in a hit-and-run accident.

The Owner of the Car

If the at-fault driver isn’t the vehicle’s owner, the owner might be held liable under certain circumstances. This concept, negligent entrustment, applies when the owner knowingly lends their vehicle to someone incompetent, reckless, or otherwise unfit to drive.

For example, if a car owner lends their vehicle to someone they know is intoxicated or has a history of reckless driving, they could be held responsible for any resulting accidents.

Additionally, in Colorado, there’s a family car doctrine that can hold the owner of a family vehicle liable for accidents caused by family members (usually teenagers or other dependents) driving the car, even if the owner wasn’t directly involved in the accident.

The Driver’s Employer

If the at-fault driver was working during the accident, you can hold their employer responsible under the doctrine of vicarious liability, formally known as respondeat superior.

Vicarious liability can hold employers accountable for their employees’ actions within the scope of employment. For instance, if a delivery driver causes an accident while making deliveries, their employer could be liable.

Companies typically have higher insurance limits than individual drivers. However, establishing that the driver was acting within the scope of their employment can sometimes be complex, especially in cases involving independent contractors or employees running personal errands during work hours.

Rideshare Companies

Accidents involving rideshare drivers, such as Uber or Lyft, can be complex when it comes to liability. Whether the rideshare company’s insurance will cover your damages depends on the driver’s status at the time of the accident.

If the driver was offline or not accepting rides, their personal auto insurance applies. If the app was on and the driver was waiting for a ride request, the rideshare company typically provides limited liability coverage.

When the driver is en route to pick up a passenger or during a trip, the company’s full commercial insurance policy (usually with higher limits) comes into play. Your car accident lawyer will investigate your car accident case to identify and pursue the best course of action to maximize your compensation.

An Auto Repair Shop

Auto repair shops can be held liable if faulty repairs or other negligent work contributes to an accident. Improper repairs, failure to identify and address safety issues, and using defective parts are some of the failures that can cause a driver to lose control of their vehicle.

For example, an auto shop that improperly installs brakes, which later causes an accident, could be held responsible. To establish liability, your car accident lawyer must prove that the shop’s work was substandard and directly contributed to the accident.

Proving liability in such a case often requires expert testimony from automotive specialists. If successful, you may be able to seek compensation from the repair shop’s business insurance.

The State, County, or City

In rare cases, you can hold government entities liable for a car accident if poorly maintained roads, inadequate signage, or malfunctioning traffic signals contributed to an accident. Dangerous potholes, missing guardrails, obscured stop signs, or improperly timed traffic lights are all dangers for which you could hold a government entity liable.

Claims against government entities involve special procedures and shorter deadlines. In Colorado, you must file a formal notice of claim within 182 days of discovering your injury. Governmental immunity laws, which protect government entities from certain types of lawsuits, make these cases complex.

Your attorney can explain whether these special circumstances apply to your case and if they can be challenged.

The Car’s Manufacturer

If a vehicle defect caused or contributed to your accident, you might have a product liability claim against the car’s manufacturer, the manufacturer of a defective auto component, or both.

Product liability lawsuits involve faulty brakes, tire blowouts, airbag malfunctions, or electronic system failures.

A successful product liability claim depends on proving whether the vehicle or a component was defective and that the defect caused your injuries. Establishing liability in a product liability lawsuit requires extensive investigation and exhaustive analysis.

Manufacturer liability can extend to various parties in the distribution chain, including the vehicle manufacturer, parts manufacturers, and even car dealerships. Product liability complaints are complex but may result in substantial settlements or verdicts.

Dram Shop

Most states have dram shop laws that allow plaintiffs to hold establishments that serve alcohol liable for drunk-driving accidents. These laws vary from state to state.

In Colorado, for instance, the dram shop law allows victims of drunk driving accidents to hold alcohol vendors partially responsible under certain circumstances. If a bar, restaurant, or liquor store serves alcohol to a visibly intoxicated person or someone under 21, and that person then causes an accident, the establishment may share liability.

There are strict limits on dram shop liability in Colorado. You must bring the claim within one year of the alcohol sale, and the state caps damages at $150,000 (adjusted for inflation). These cases require prompt investigation to gather evidence of over-serving.

While challenging to prove, dram shop claims can provide an additional source of compensation, especially if the drunk driver’s insurance cannot cover your damages.

Dealing With Insurance Companies

Handling insurance companies after a car accident can be challenging. Insurance adjusters are trained to minimize payouts, often using tactics that can leave accident victims under-compensated.

These strategies may include offering quick, low settlements, denying or downplaying the severity of your injuries, or delaying the claims process.

If you tried to negotiate with an insurance company on your own after a car accident, you know that it will make getting fair or adequate compensation extremely difficult.

Hiring a car accident attorney with years of trial experience can make a tremendous difference in the outcome of your case.

Insurance companies know that trial lawyers like Fuicelli & Lee mean business. They often make much higher settlement offers when a trial lawyer becomes involved. They also know we are prepared to file a lawsuit and take your case to trial to recover compensation for the full extent of your injuries and other damages.

An experienced car accident attorney will:

1. Handle all communication with the insurance company
2. Value your claim to accurately account for all of your damages
3. Negotiate for a fair settlement, countering lowball offers with evidence
4. Prepare a lawsuit and take your case to trial if the insurance company refuses to settle fairly

A skilled car accident attorney levels the playing field against large insurance companies, significantly increasing your chances of receiving full, fair, and complete compensation.

Proving Negligence

To successfully sue in a car accident case, your car accident lawyer must prove the other party’s negligence by establishing four elements:

1. Duty of care: The defendant owed you and everyone else on the road a duty to drive safely.
2. Breach of duty: They failed to uphold this duty (e.g., by speeding or texting while driving).
3. Causation: Their breach directly caused the accident.
4. Damages: You suffered actual damages as a result.

Your car accident attorney will gather evidence, such as police reports, witness statements, and expert testimonies, to build a strong case proving the other party’s negligence.

Car Accident Injuries

Car accident injuries range from minor bruises to catastrophic, life-altering conditions and even death. The injuries you sustain in a car accident are a deciding factor in your car accident lawsuit and the amount of compensation you may receive.

Common car accident injuries include:

• Whiplash and neck injuries
• Traumatic brain injuries (TBI)
• Spinal cord injuries
• Broken bones
• Internal organ damage
• Cuts and lacerations
• Soft tissue injuries
• Psychological trauma, such as PTSD

The severity and long-term impact of your injuries, as well as your age, are some factors that courts consider when determining the value of your car accident lawsuit.

Damages You May Pursue in a Car Accident Lawsuit

Car accident damages generally fall into one of two categories. When preparing a car accident lawsuit, your lawyer will carefully consider every compensable damage you may claim. Car accident damages usually include:

Economic Damages

Economic damages, also called special damages, are quantifiable financial losses, including:

• Medical expenses (past and future)
• Lost wages or income
• Lost or diminished earning capacity
• Lost job benefits, bonuses, and promotions
• Property damage
• Rehabilitation costs
• Out-of-pocket expenses related to the accident

Non-Economic Damages

Non-economic damages, or general damages, compensate you for subjective, intangible injuries, such as:

• Pain and suffering
• Emotional distress
• Loss of enjoyment of life
• Loss of consortium

Some states, including Colorado, cap non-economic damages for wrongful death. Your car accident attorney can explain how these caps might affect your car accident case.

Wrongful Death Damages

Losing a loved one in a catastrophic car accident is unthinkable, yet it happens every day. The emotional trauma and grief of losing a family member cannot be overstated and should never be undervalued.

If a car accident resulted in the death of a loved one, you may file a wrongful death lawsuit against the at-fault party.

Damages in wrongful death cases may include:

• Funeral and burial expenses
• Loss of income and financial support
• Loss of companionship and guidance
• Emotional suffering of surviving family members

Punitive Damages

Your car accident attorney may seek punitive damages in some cases involving extreme recklessness or intentional misconduct. Punitive damages punish the at-fault party and discourage them or others from engaging in similar gross negligence or wrongdoing again.

Fuicelli & Lee: Your Trusted Car Accident Lawyers in Denver

When a car accident lawsuit is the only viable way to seek compensation you deserve for all of your injuries and losses, the lawyer you choose can make a considerable difference in the outcome of your case.

At Fuicelli & Lee, our team of Denver car accident lawyers is prepared to help you. We have dedicated our careers to fighting for the rights and compensation of those injured in a car accident because of someone else’s negligence or recklessness.

We have recovered millions of dollars for clients injured in car accidents, and our steadfast commitment to our clients is reflected in our client ratings and reviews.

Call Fuicelli & Lee today at (303) 444-4444 for a free, no-obligation consultation. You may also fill out our contact form online. We work on a contingency basis so that everyone can access top-tier legal representation. You pay nothing unless we win for you.