It depends. Did your insurer deny coverage to you or did it deny the other party's claim? If the former, then you're on the hook. If the latter, then you're okay because your insurer will still have the duty to indemnify (pay your claim) up to the limits of your policy (and maybe more) in the event of a final judgment in favor of the plaintiff against you. If suit gets filed, then you need to let your insurer know asap because it also has the duty to defend you.
If you have automobile liability insurance, you should not be too concerned. If you are sued by the adverse driver, immediately notify your automobile liability insurance Co. Your company will have the duty to both defend you and indemnify you in the event you are sued. The fact that they have denied the claim, pre-suit, does not mean that they do not have the obligation to defend you.
Mr. Lundeen is licensed to practice law in Florida and Vermont. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. Mr. Lundeen strongly advises the questioner to confer with an attorney in your state in order to insure proper advice is received.
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