What Do I Do If I’m Being Sued for a Car Accident?

So you’ve been in a car accident and have been sued by the other party for property damage (or hire car) and don’t know what to do?

First, don’t panic. The courts deal with thousands of car ancient claims every year, you’re not the first to be involved in this type of matter and won’t be the last.

Second, don’t wait and don’t ignore any Court documents.  Ignoring any Court documents, especially a Statement of Claim can lead to default judgment being entered against you.  Not only can that affect the ability to defend any claim, but it could have other detrimental effects, including on your credit record.

If you have insurance

If you have third party property damage insurance or comprehensive car insurance, either make a claim or notify your insurer that you have been sued.  Do this even if you have already made a claim with the insurer for your car.   If you haven’t made a claim, lodge a claim – you may need to pay an excess but in the long run, it may work out cheaper for you and with less stress.

Your insurer will likely look after the claim for you.  Most insurers have legal firms on retainer or on legal panels who will deal with the matter on your behalf, and it forms part of the insurance coverage that you have.   You will, however, likely to be required to cooperate and assist the lawyers.

Note that Compulsory Third Party (CTP) insurance , this will not cover property damage (a useful summary of CTP insurance (at least in NSW) and what it is for can be found here: What is a Green Slip? – SIRA (nsw.gov.au))

I have insurance but my name is on the Court Documents and not the insurer

Even if you have insurance and the insurer will deal with the matter, the individuals involved in the car accident are the actual parties to the proceeding e.g. the plaintiff(s) or defendant(s).  For example, it is the driver of the “at fault” vehicle that was negligent, not their insurer.

It is not uncommon for both parties to have insurance and in reality, the court proceeding is a dispute between the insurers about who is liable and for what amount.  The insurers take over conduct of the legal dispute due to the legal principle of “subrogation”.

If you don’t have insurance

If you don’t have insurance then you will either need to get a lawyer or try to resolve the matter yourself.  You do not have to retain a lawyer to assist you and you can represent yourself; however, we would always recommend that you obtain legal advice and/or representation in any Court proceedings.  A lawyer will not only be familiar with the relevant case law dealing with your dispute but will also be familiar with the practice and procedure of the Court and will know what is required to defend your case.