I was in a car accident that wasn’t my fault, but I didn’t have car insurance (or my insurance didn’t cover the claimed damages). What can happen to me?
There are two things that can happen to you.
- Requirement to pay a bond or lose license / registration (up to one year, does NOT require lawsuit). If the accident resulted in a claimed bodily injury, death, or more than $1,500 in claimed damages, the DOT may —
- if you were the person driving, suspend your driver’s license, OR
- if someone else was driving your car, suspend your ability to get a new registration.
- The other driver — or more likely their insurance company — may sue you. The other thing that can happen is that the other side files a lawsuit against you. If they win, and you don’t pay the judgment, they can ask that your driver’s license be suspended.
The rest of this article will give you some ideas as to what you can do if you find yourself in either or both of these situations after an accident.
What do I do if the DOT suspended my license for “failing to pay security?”
Once an accident is reported to the DOT where damages are not completely covered by your insurance, you may get a notice from DOT that says your license or registration will be suspended if you don’t pay “security.” This means that you could get your license back by paying the full amount the other side claims would cover the damages. However, many people can’t afford the security amount DOT demands.
If you disagree with DOT’s decision, you have the right to appeal it within the time stated on the notice. You may have grounds to appeal if any of the following are true:
- The only damage or injury was done to the uninsured person;
- The vehicle was legally stopped, standing or parked;
- Your vehicle was driven without your consent;
- You have received a release from liability from the other driver;
- Have a court order that says you are not liable for the damage;
- Are not at fault or there is no reasonable possibility of a judgment because:
- the other driver admits causing the accident,
- the investigating officer’s report says the other driver caused the accident,
- witness statements indicate the other driver caused the accident, or
- the other driver is convicted of a violation which caused the accident.
- Received a document showing that the other driver or the driver’s insurance company accepted liability and paid the damages, OR
- Filed a bankruptcy petition that included all the possible claims from the accident.
You may also avoid suspension by filing sufficient proof of any of the above with DOT before the date of suspension. In addition, you can also enter into a written payment agreement with the others in the accident. Sometimes, the other side might suggest that you sign a “confession of judgment.” This is a document that is filed in court and becomes a judgment against you, except you do not get the notice or a right to tell your side of the story. You should talk to an attorney before signing a confession of judgment, or even entering into a payment plan, or any other act where you admit that you are at fault or should owe money due to an accident.
One thing you may also do in this situation is to contact the other side and ask them to provide proof of the damages they are claiming. In general, they don’t have to prove their claim to get the one-year suspension from DOT. It is okay to to push the other side to actually produce the proof they might have and see whether their claims would hold up in court — especially before agreeing to pay or admit you are at fault.
What if I miss my appeal date or am unsuccessful in my appeal?
If your license or registration has already been suspended, the suspension will stay until one of the following happens:
- You pay an amount set by the DOT.
- Twelve months have passed since the accident and the DOT has not been told about any lawsuits for damages regarding the accident.
- Evidence has been filed with the DOT showing:
- Release from liability,
- Final court decision that you aren’t liable,
- Confession of judgment, OR
- Written payment agreement with the other party.
- Filing a bankruptcy petition that includes the debt.
What if I get sued?
Even beyond the one-year administrative suspension, you can also have your license suspended if you are sued for a car accident. If this happens, and you had at least some insurance, you should contact your insurance company. Sometimes, the terms of your policy provide that your insurance company will hire a lawyer to contest the claim. In general, to avoid judgment being entered against you, you will have to prove that the accident wasn’t your fault, or that you had insurance coverage to cover the full claim. The other side will have to prove the monetary amount of their damages.
If the judgment is entered against you, and you cannot pay it, your driver’s license can be suspended. If that happens, you can get your license back in the following ways:
- Getting a written consent from the person who has the judgment;
- Paying the judgment amount and getting a receipt from the clerk of court showing all payments have been made on the judgment;
- Filing a bankruptcy petition that includes the judgment;
- You can request a hearing, where the court can set a repayment plan, even if the other side doesn’t agree.