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Accident while no insurance

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skyrim

Junior Member
What is the name of your state (only U.S. law)? New Jersey

Hello,

In 2015 I was parked at the convenience store next to my house. I was unemployed and I did not have insurance at the time. I didn't know it lapsed for non payment. I was pulling back from the parking spot and didnt see the car behind me so we hit each other. The cops came, checked my info ( I had insurance card, but it lapsed few days before this incident). I didn't get a ticket. I am not sure why, perhaps because I showed a PB card. That was the end of it.

Few months ago I received a letter from a debt collector on behalf of insurance company demanding a payment of $4,700 as a result of an accident caused by supposedly me. I keep getting these letters on a regular now. I assume it is the other insurance company coming after me. Question: am I liable? I did NOT get a ticket, I am not sure what is in the police report as I didn't see it either. What is going to happen next in your respectful opinion and experience? They are threatening to take it to court if I dont pay within 10 days. Please advise - thank you very much.
 


Zigner

Senior Member, Non-Attorney
What is the name of your state (only U.S. law)? New Jersey

Hello,

In 2015 I was parked at the convenience store next to my house. I was unemployed and I did not have insurance at the time. I didn't know it lapsed for non payment. I was pulling back from the parking spot and didnt see the car behind me so we hit each other. The cops came, checked my info ( I had insurance card, but it lapsed few days before this incident). I didn't get a ticket. I am not sure why, perhaps because I showed a PB card. That was the end of it.

Few months ago I received a letter from a debt collector on behalf of insurance company demanding a payment of $4,700 as a result of an accident caused by supposedly me. I keep getting these letters on a regular now. I assume it is the other insurance company coming after me. Question: am I liable? I did NOT get a ticket, I am not sure what is in the police report as I didn't see it either. What is going to happen next in your respectful opinion and experience? They are threatening to take it to court if I dont pay within 10 days. Please advise - thank you very much.
Awww, c'mon! Really? You backed in to a car, OF COURSE YOU ARE LIABLE for any damage you caused.

ETA: Ok, after rereading your post, it's become less clear. Were you BOTH backing? If so, then it could be argued that you are each 50% liable (or some other percentage breakdown, depending on the exact circumstances.)
 

skyrim

Junior Member
No, I was the one backing. She was pulling up.

Ok. So what will happen? They will take me to court, I assume, top it off with court costs and fees etc. Can this debt be dismissed in bankruptcy? I have no means to pay it out of pocket. Can my wages be garnished, or is this against the NJ law to garnish wages for this kind of debt?

And additionally - the fact that I didnt get any ticket - does it help me in any way?
 

adjusterjack

Senior Member
No, I was the one backing. She was pulling up.

Ok. So what will happen? They will take me to court, I assume, top it off with court costs and fees etc.
Yes.

Can this debt be dismissed in bankruptcy?
Yes.

However, an unpaid uninsured accident could result in your driver license being suspended until you pay it and the DMV would have no obligation to restore your driving privileges because the DMV won't be actively seeking to collect as the punishment is just the suspension.

I have no means to pay it out of pocket. Can my wages be garnished, or is this against the NJ law to garnish wages for this kind of debt?
NJ allows wage garnishment for this kind of debt.

And additionally - the fact that I didnt get any ticket - does it help me in any way?
No.

Negligence is negligence whether you get cited or not.
 

skyrim

Junior Member
Thank you for the replies.

What is the best course of action for me? I barely make ends meet supporting family alone and am in debt already. I dont have the $.
 

adjusterjack

Senior Member
What is the best course of action for me? I barely make ends meet supporting family alone and am in debt already. I dont have the $.
Then there is no "best" course of action. They are all bad ones.

The property damage statute of limitations in NJ is 6 years so they have plenty of time to sue you with all the consequences that will entail.

You could ask for a payment plan but you'll need to be willing to pay the same amount as wage garnishment would be or they would have no reason not to sue you, get a judgment, and take it automatically out of your pay before you ever see it.

Sorry, I can't be optimistic for you.

Welcome to the nightmare world of no-insurance-land.
 

ecmst12

Senior Member
Your best bet is to contact them and make payment arrangements, and make the payments faithfully, to avoid being sued and losing your license.
 

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