What Are Financial Responsibility Laws?Financial responsibility laws essentially say that when you are in an accident or convicted of a moving violation, you must show that you are able to pay for any damages. The purpose of this law is to be sure that if a person gets into an accident with another person, he can pay for the damage done to other person's car and self if it is his fault. Different states have various ways of proving financial responsibility, but the most common way that is accepted in all states is if a person has automobile liability insurance. Some states allow other methods of proof of financial responsibility such as depositing cash or acceptable securities into a trust fund held by a state official, or posting a bond with the state.
What Are the Potential Consequences of Not Having Auto Insurance When I Get into an Accident?Having automobile liability insurance comes with certain benefits that could be quite costly to be without, if you are in a car accident. For one thing, your insurance provider will usually provide you with an attorney if you are sued. Without auto insurance, you will be stuck with having to hire your own attorney and even if the trial ends in your favor, you will have to pay all the court costs and attorney bills yourself. Another downfall of not having insurance occurs if the other motorist sues you. If you are found liable, you could personally owe up to hundreds of thousands of dollars. In that case, the other motorist becomes your creditor and could institute legal proceedings for collection of the money you were determined to owe. Regardless of whether the other motorist is at fault in a car accident, if you do not have auto insurance your state may carry penalty laws that forbid you from asserting any claims against other motorists in the event of an accident.
What Should I Do if I Have Been a Car Accident and Do Not Have Auto Liability Insurance?You should immediately consult an attorney who has experience dealing with automobile accident claims. Your attorney will be able to advise you of your rights and let you know what possible courses of action you can take along with what defenses you might have if you are sued. |
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