I was recently in a car accident. I have full collision and comprehensive coverage through a national car insurance company. My insurance determined I was NOT at fault for the accident. One of the other cars involved in the accident was a rental car. The rental car agency (a local business, not a national agency) has told me that I am responsible for the damage to their car since my insurance will not pay for the repair. In the rental company's most recent correspondence (they have been harassing me daily with phone calls and text messages), they stated they will now pursue legal action against me (not my insurance company) in small claims court. I am worried about both the extra legal expense this may incur and the effect this will have on my credit (the rental company has assured me this will damage my credit). My insurance company has told me that if this rental company does present me with paperwork, that I am to contact them (my insurance co); however, they won't tell me anything more about what action they will take once I am served, except to assure me they will stand by their decision that I am not at fault. What are my rights ? Is this a wrongful suit ? Or do they have a right to sue me even though I have protected myself with car insurance ?

Justice Matters

Without getting into the merits of the case the filing of a claim against you will likely get picked up by the various credit reporting agencies. However, creditors are generally far more concerned with judgments than they are claims (unless a claim is very large or there are many of them).

If the claim is defeated the credit reporting agencies should also pick up that information as well.

As for your other question one generally does not countersue just because one has been sued. If the plaintiff does not win its case then the court will assess costs against it for bringing an unsuccessful action (check the particular court rules in your jurisdiction).

ScottGem

Ok, I totally disagree with Scleros about insurance not protecting you. While some insurance companies do try to protect their interests before yours, most are reputable and it sounds like yours is doing the right. The rental company is trying to scare you. Probably they can't collect from their customer, so they are trying to intimidate you into forking over some cash. So you tell them to stop calling and do what they think they must. If you do get a summons you turn it over to your insurance company and they will deal with it.

Relax and don't worry about this.

ScottGem

I've merged your two threads. Please don't start multiple threads for the same issue.

The only time you need to worry about this affecting your credit is if they win a judgement. And then it becomes a problem only if you don't pay.

JudyKayTee

Had to jump in - felt your answer (to which George 1950 was responding) was not factual. Interesting, perhaps; inflammatory, perhaps; not legally factually.

And, no, I don't work for an insurance company. I investigate accidents for Plaintiffs - I am the enemy of the insurance companies.

Also, the fact that a person is ticketed does not mean the person was responsible for the accident.