At-Fault Party
LexInter | May 5, 2022 | 0 Comments

What Happens When The At-Fault Party Cannot Pay Damages?

If you’ve suffered injury from an accident, you may have several questions running through your mind, and that’s understandable. You’re dealing with physical pain, emotional trauma, and financial stress, all at once. Thus, you deserve to know how much compensation you can expect to recover, when you will get paid, or what happens if the other person doesn’t have insurance.

The answers depend on many factors. However, you yearn for certainty more than anything else. At least then, you can take comfort in knowing what to expect and how much your case is worth.

Yet sometimes, uncertainty looms in the air, especially if the at-fault party has no money to pay for damages.

 Expect These Things In Such A Scenario

  • Expect A Hearing To Determine The Status Of The At-Fault Party’s Finances

Experiencing or seeing motorcycles and car accidents can be devastating, but this unfortunate experience shouldn’t go without compensation.

The at-fault party needs to pay. If they cannot pay, the judge will likely grant a hearing to determine how much money they have. The judge can then decide whether or not your case should continue.

If they find that the at-fault party doesn’t have any funds, they could sign an affidavit for future payment. Alternatively, your case could head for dismissal. However, if they find some funds available, you’ll still be able to collect a portion of the damages by continuing with your case.

  • Expect Your Attorney To Work With Your Insurance Company

Insurance Company

If an underinsured driver caused your accident, it could be harder to recover the total amount that you deserve. In this situation, your personal injury attorney may work closely with your own insurance company to maximize the settlement you receive. If this is the case, they’ll help ensure you’re not unfairly compensated or taken advantage of by the insurance company.

It’s essential to understand that you should never expect to receive the total settlement amount right away. Negotiating with an insurer on your behalf can take time and patience. Your attorney may need to get additional detailed information from you as they develop their argument for compensation in front of a judge or jury should negotiations fail.

  • Expect That Justice May Not Be Fully Served

Fortunately, there are other options you may consider. If the at-fault party cannot pay damages, one solution is to file a personal injury lawsuit. The process is more involved than going through your insurance company. However, the reward can be more significant if you prevail in court and it is able to determine whether the at-fault party has sufficient assets or income.

The bottom line is this: Don’t expect justice to be on your side if the at-fault party doesn’t have enough money to pay for all of your injuries. However, do note you still have options for recovering some or all of what you’re entitled to get.

  • Expect A Higher Payment If You Have Uninsured Motorist Insurance

Higher Payment

If you have uninsured motorist coverage, your insurance company will usually pay you the difference between what the at-fault driver can afford to pay and what you deserve. Suppose you have USD$10,000 in medical bills and the at-fault driver only has USD$10,000 in liability insurance. Thus, your insurance company will probably pay the remaining USD$5,000 (provided that you also have USD$5,000 in uninsured motorist coverage). So, if a driver has no car insurance or no money to cover your damages, it doesn’t mean there’s nothing for you to recover.

  • Expect To Get Nothing Without An Uninsured Motorist Coverage

You’ll probably get nothing if you don’t have uninsured motorist coverage and the at-fault party cannot afford to pay damages.

Likewise, if the at-fault party is insured but lacks sufficient coverage, your options are limited. Some companies cover their customers beyond the policy limit when involved in accidents with uninsured drivers, but this is not the case.

Therefore, ask your insurance agent about additional coverage if you’re concerned about being involved in an accident with a driver who doesn’t have enough insurance to cover damages.

  • Expect To Negotiate With The At-Fault Party Or Use Credit Cards For Repairs

Negotiate

If the at-fault party doesn’t have insurance or enough coverage for your costs, you can try to negotiate with them or use credit cards to pay for repairs. Work out a payment plan with the at-fault party. You should proceed with caution and expect to incur some fees if this remains your only option.

Conclusion

It’s crucial to remember that the law should be on your side in car and motorcycle accidents if you’re the victim. Insurance companies know this, and they’re motivated to get you what you deserve. Therefore, hiring a personal injury attorney makes sense, especially if you’re having trouble getting the settlement you deserve from the insurance company.

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LexInter

Lexinter Law, with a team of dedicated authors who strive to provide you with all the relevant and actionable tips on the legal aspect of your life. Our goal is to educate you so that you can make legal action with ease, or find the right person who can help you with your unique personal legal dilemma. Take care!

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