Yes. Your liability insurance covers lawsuits. Your company has a duty to provide a lawyer to represent you in lawsuits accusing you of negligence in driving your car. If you receive a summons or notice of a lawsuit, notify your company right away. Although the company pays for the lawyer, the lawyer's ethical duty is to represent your best interests. There is no policy limit on how much the company must pay the lawyer to represent you.
If the case is settled or there is a judgment against you, the company will pay up to the policy limit. But if the court judgment or settlement is more than your policy limits, you will have to pay the difference. The company may refuse to defend you if you are accused of intentionally injuring someone or intentionally damaging property.
Auto insurance can be confusing. That’s why our office stands ready to help you have a better understanding of your coverages.
We invite you to contact our office for a no-obligation review of all your insurance needs.