Is It Possible To Get Compensation For An Accident When The Liable Driver Has No Money?
Car accidents are stressful and sometimes traumatizing events, and they become even more complicated when the other driver doesn’t carry enough insurance to cover your damages or is in violation of Missouri law by not carrying insurance at all. So if the liable driver has limited assets or no money, how will you be compensated for your losses? You don’t want to be left footing hefty bills for vehicle repair, property damage, medical expenses, and other damages after an accident that wasn’t your fault.
The good news is that there are still ways to collect the compensation that you are owed, whether it’s through an insurance company or the court system. As long as you are patient and prepared and are working with an experienced car accident attorney, in most cases, you can move forward to obtain the compensation you deserve, even when the liable driver has no money.
Compensation Through an Insurance Company when the Other Driver Can’t Pay
Insurance companies are the first recourse for obtaining compensation after a car accident. Unfortunately, many drivers don’t carry adequate insurance, while others may carry no insurance at all. This leaves them unable to adequately compensate other drivers when they are at fault in an accident.
Missouri is an “at fault” state, which means that the driver who is responsible for the accident can be held liable to pay for damages for all involved parties. Missouri state law requires all drivers to carry a minimum of $25,000 worth of coverage per person and $50,000 per accident, but unfortunately this minimum is far below what is needed to adequately cover damages and medical expenses after a serious car accident.
To protect drivers in case of a hit and run or an accident with an uninsured motorist, Missouri requires drivers to obtain an uninsured motorist policy (UM) from their auto insurance company. That way, if the liable driver is uninsured and unable to compensate you for damages, your own insurance company will take care of the bill.
Your insurance company may also offer an underinsured motorist policy (UIM), which means your own insurance company will cover damage and medical bills after the at-fault driver’s insurance has reached its maximum payout. However, Missouri does not require the purchase of UIM policies. Because the minimum $25,000 liability coverage is not likely to provide sufficient coverage after a serious accident, it’s recommended to carry a UIM policy on your own insurance if you can afford it. Carrying a large UIM policy is the easiest solution for when a liable driver cannot fully cover your damages. However, you may have other recourse options as well.
Compensation from the At-Fault Driver’s Employer or Parent
If the liable driver got into an accident in a work vehicle or while on the clock, their employer could potentially be held liable for your damages. Although their personal insurance will probably be the first avenue to pursue with your car accident lawyer, their employer is another option that may enable you to gain full compensation.
In situations where the collision involves a teenage driver, their parent or guardian would be legally responsible for covering your damages, whether through their own insurance policy or the sale of their own assets.
Compensation by Court Order
If the liable driver is uninsured or underinsured, or if you are unable to reach a sufficient settlement with their insurance company, you may need to take the liable driver to court in order to recoup your damages. But even if a lawsuit rules in your favor, the court may still need to step in so that you receive compensation. The court can order the defendant to sell their assets and even garnish their wages until you’ve been fully compensated.
Payment Plans May Be Ordered
Sometimes, a judge will order the defendant to make regular, scheduled payments to you, typically in situations where the defendant is unable to pay the entire amount of damages at one time. Most defendants will agree to this plan because it makes the debt burden more manageable.
However, it’s not a guarantee that you will get your money, and you’ll have to wait many months or even years to receive all of the compensation. The court may also order interest to be paid as part of the compensation, making matters more complicated.
Don’t Accept Pre-Settlement Cash Advances
Obtaining compensation can take a long time, especially in complicated situations where the liable driver has few assets or little income. If medical bills are pressing, your recovery is difficult, and you feel stressed, it’s natural to want to get your money sooner than the court system, or an insurance company can get it to you.
Be wary of pre-settlement loans. These are loans where you can receive an advance cash payment for some of the money you expect to win after your settlement is awarded. However, you’ll have to win the settlement before you have the money to pay back the loan, so the whole situation could backfire if you don’t win the settlement or get less money than you hoped. Plus, you’ll have to pay back what you borrowed at a high-interest rate.
Instead, increase your chances of a high settlement and successful resolution by working with an experienced Missouri car accident attorney who can help mitigate risk, move the process ahead, and put you in the best position to receive compensation for the damages that you are owed.
This article is courtesy of Benson & Bingham Accident Injury Lawyers, LLC, one of Nevada’s leading personal injury attorney firms. Their attorneys have extensive experience representing victims of car accidents and work to gain full compensation for damages on behalf of their clients.