What happens if you have no car insurance and you have an accident?

Answer 1

If the collision was your fault, even if you had no insurance, you are still theoretically liable for the innocent party's damages. He/she may make a decision that even in the absent of insurance, they will make a claim against you, You can either resolve the claim voluntarily, or wait to see if they will file a lawsuit against you.

If a lawsuit is filed, you must defend it, yourself or with the help of a lawyer that you hire. If you fail to, a judgment will be entered by default. Depending upon the state in which you live and where the judgment is entered, the judgment is enforceable for many years and becomes a lien on property that you own or acquire during the life of the judgment. Under certain circumstances, bank accounts can be attached, salary or wages garnished, or other forcible collection actions taken.

If you were issued a ticket and convicted, and if damages exceed a stated amount, the fact that you did not have insurance could lead to a license and registration suspension under your state's Financial Responsibility Law. If that happens, both are suspended for a period of time (often one or more years), or until such time as you make payment arrangements with the other party. You are generally also required by the state to maintain high-risk auto liability insurance for a number of years. A similar process is triggered if a judgment is entered against you (that is, a license suspension).

Another aspect of a collision without insurance is that you will be financially responsible for the repair of your own vehicle. If you had had collision coverage, the insurer would have borne that expense subject to the policy deductible.