If you wreck someone else's car and that person's auto insurance covers the damages can the car owner still sue you for damages to their car after the accident?

Generally, if the vehicle is totalled as a result of the collision and the owner had collision coverage, the insurer will pay to the owner the actual cash value of the vehicle as of the time of the loss. This usually equates to the value of a car of like kind and quality (including mileage, accessories and condition) as of the time of the collision. Because of its payment to its insured, the insurer becomes "subrogated" to the right of action of its insured so that it can try to get its money back from you. You will have the same defenses against the insurer as you would have had against the other driver (for example, that the other driver was partially or entirely At Fault for the collision).

The subrogation action that the insurer files often includes a claim for the insured's deductible, but it may not. If it does, the insured cannot again make a claim for it; if it does not, the other driver can file suit against you for the deductible and other unreimbursed expenses that he/she may have incurred and that were proximately caused by the collision.

Further, if the person is injured and if the injuries are of a type that permits him/her to file suit (usually defined in terms of seriousness), you can be sued for bodily injury damages. Your liability insurer has the obligation to defend you by providing an attorney at its expense and paying amounts for which you are found legally liable up to the limits available under the insurance policy. This is also true with regard to a property damage claim.

If a judgment is entered against you and remains unpaid, there can be implications for your credit. Additionally, under the Financial Responsibility Law of many states, if a judgment from an auto collision remains unpaid for a stated period of time, your driver's license and tags may be suspended until payment arrangements have been made. You may also be required to obtain and maintain a special form of high-risk liability insurance (sometimes referred to as an SR-22) for a period of time, but this depends upon State law.