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What Happens If I Get Sued After a Car Accident and I Have No Money?

There are several reasons why every motorist should make sure that they keep their car insurance premiums paid up. One of the reasons is because car insurance is required before you can legally have a car on the road. The other reason for maintaining your car insurance payments is so that the insurance can work for you if you ever run into legal troubles as the result of an accident.

When people say they have no money, they are usually using a common expression to prove a point. Most people that pay their car insurance and other bills every month have money. They just do not have the kind of money that can pay for lawyers and meet the financial obligations of a lawsuit if they should lose. A lawyer can cost thousands of dollars and a settlement can range anywhere from a few thousand to hundreds of thousands of dollars. Most people would not be able to foot that kind of bill.

Luckily, your car insurance has a liability portion that will pay for all of your legal expenses and the settlement costs up to your limit. The most important thing to remember is that you need to contact your insurance company as soon as you are in a car accident. If you do not alert your insurance company of the accident and pending legal action, then the company may choose not to fully cover you. But if you keep your insurance company informed, then you will be covered. Some people avoid calling their insurance company about an auto accident because they are afraid the company will drop them. This is a huge mistake.

When your insurance company is notified of a claim and pending legal action, the company will hire an experienced liability lawyer to represent your case. You will not have to pay any of the legal bills. If the other party is awarded a settlement as a result of the legal action, then your insurance company will pay the settlement up to your liability limits.

This is why liability insurance is so important. Many people skimp on their liability limits because they feel that a serious accident will not happen to them. But when you only have a $1,000,000 liability limit and the total costs of the case are $1,500,000 including legal fees and settlement, then you may be responsible for some of all of that $500,000 difference. That is why it is always a good idea to pay a little extra in premiums for the best liability coverage.

You can be sued after a car accident even if you do not have any money in savings or any financial resources. If you lose the case, then you could spend the rest of your life paying it off. But if you have good liability coverage on your auto insurance, then you are covered and you will not have to worry about any payments that fall under your liability limits.

For assistance with a personal injury or insurance claim, please email David at To be contacted immediately call 1-855-446-7765 for a free case evaluation.

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I’d like to express my gratitude for you taking care of my car accident injury case. Your strong knowledge and experience solved this case smoothly. I don’t know what I would have done without your effort. Thank You, Best Wishes.

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