What Happens If The Person That Injured Me Doesn’t Have Insurance?

One of the primary concerns in personal injury cases is ensuring the injured party receives compensation for their damages. In most cases, the at-fault party’s insurance covers these damages, making it relatively straightforward to secure financial recovery. But what if the person responsible for your injuries doesn’t have insurance, or their coverage is insufficient? This situation, though challenging, doesn’t mean you’re left without options. In this blog, we explore the strategies available when the person you sued doesn’t have insurance and how to pursue the compensation you deserve.

Understanding the Role of Insurance in Personal Injury Cases

In personal injury cases, having the defendant’s insurance helps ensure that the injured party receives the compensation they need to cover medical bills, lost wages, and other damages. For instance, in a car accident, the at-fault driver’s auto insurance typically covers these expenses, while in other personal injury cases, liability insurance (e.g., homeowners or commercial policies) may provide similar protection.

When the defendant lacks insurance, this coverage is no longer an option, which complicates the recovery process. You may still win a judgment, but without an insurance policy to back it up, collecting that judgment can be challenging, especially if the defendant lacks the financial resources to pay.

Can You Still Sue an Uninsured Person?

Yes, you can still sue an uninsured person. Winning the lawsuit and receiving a court judgment in your favor is certainly possible, but enforcing the judgment can be difficult if the defendant lacks assets or income.

If you do obtain a judgment against the defendant, there are several ways to collect the funds, including garnishing wages, placing a lien on property, or levying bank accounts. However, each of these approaches depends on the defendant’s financial circumstances, and if they lack income or significant assets, recovery might be limited.

Uninsured Motorist Coverage (UM) in Car Accident Cases

According to the Insurance Information Institute, approximately 14% of drivers nationwide are uninsured. In a car accident case, if the at-fault driver is uninsured, you may be able to rely on Uninsured Motorist (UM) coverage. This is a type of auto insurance required by Illinois law with minimum limits of $25,000 per person/$50,000 per accident that protects you in case the at-fault driver lacks insurance.

How Uninsured Motorist Coverage Works:

If you have UM coverage, your insurance company steps in to cover damages up to the limits of your policy. This can include compensation for medical bills, lost wages, and even pain and suffering, depending on your policy terms.

Underinsured Motorist Coverage (UIM)

In some cases, the at-fault driver may have insurance, but it’s not enough to cover all your damages. Underinsured Motorist (UIM) coverage can supplement the other driver’s insufficient insurance, allowing you to recover the remaining amount from your own insurer.

If you don’t have UM or UIM coverage, it is wise to speak with your insurance agent about adding these protections, as they can provide crucial support in uninsured or underinsured driver situations.

Checking for Other Sources of Coverage

If the defendant lacks personal insurance, there may be other avenues to explore:

• Employer Liability Insurance: If the person who caused the accident was acting within the scope of their employment, the employer may be held liable. For example, if a delivery driver hits your vehicle while on duty, their employer’s commercial insurance may cover the damages.
• Homeowner’s or Renter’s Insurance: In some personal injury cases, such as dog bites or slip and falls on private property, the homeowner’s or renter’s insurance may cover your damages. However, this will depend on the nature of the accident and the terms of the insurance policy.
• Third-Party Liability: In certain cases, another party may share liability for your injuries. For instance, in a car accident, if a mechanical defect contributed to the crash, you may have a claim against the vehicle manufacturer under a products liability case.

Identifying potential sources of coverage may require a thorough investigation, and working with an experienced personal injury attorney can help you uncover these opportunities.

Pursuing the Defendant’s Personal Assets

If no insurance coverage is available, and you win a judgment, you may be able to pursue the defendant’s personal assets to satisfy the judgment. Here are some methods used to enforce a judgment:

Wage Garnishment

Wage garnishment allows you to collect a portion of the defendant’s wages directly from their employer. This process requires a court order, and garnishment laws vary by state, including limits on the amount you can garnish. If the defendant is unemployed or earns a low income, garnishment may be impractical, and can be expensive to pursue.

Property Liens

A property lien allows you to place a claim on the defendant’s real estate, preventing them from selling or refinancing it without paying you first. This approach is effective if the defendant owns valuable property, but it may take time to collect, as you may only recover your money when the property is sold.

Bank Levies

A bank levy allows you to collect funds from the defendant’s bank accounts, provided you have a court order. However, this approach only works if the defendant has funds in their accounts, and it’s important to remember that some accounts may be protected from garnishment.

Consider the Defendant’s Financial Situation

If the defendant has limited income or assets, enforcing a judgment may be costly and yield little to no recovery. In such cases, negotiating a settlement or payment plan with the defendant may be a more effective option, as it allows you to recover some compensation without prolonged enforcement efforts.

State Programs or Victim Compensation Funds

In certain cases, state-funded victim compensation programs can provide relief to individuals harmed by uninsured defendants, especially in cases involving criminal acts, such as assault or DUI-related accidents. These programs offer limited compensation to help cover medical bills, lost wages, and other essential costs. Although compensation amounts are often significantly lower than those available through a lawsuit, these programs can provide crucial support when other options are unavailable.

Each state’s victim compensation program has its own eligibility criteria and application process, so check with your state’s program to determine if you qualify for assistance.

Working with an Experienced Illinois Personal Injury Attorney

When dealing with an uninsured defendant, working with a skilled Illinois accident attorney is invaluable. An attorney can evaluate the circumstances of your case, explore all possible avenues for compensation, and help you navigate the legal process. They may also help you identify assets, investigate third-party liability, or negotiate with your insurance company to maximize your recovery.

An experienced Illinois injury attorney understands the complexities of enforcing judgments and can advise you on the most effective approach based on the defendant’s financial situation. Additionally, attorneys are often skilled negotiators, which can be helpful if a settlement or payment plan is the most practical option.

Final Thoughts: Options When the Defendant is Uninsured

Suing an uninsured person in a personal injury case can be challenging, but it’s not impossible to recover compensation. With Uninsured Motorist coverage, third-party liability, or asset enforcement, you may still have options for financial recovery. Each case is unique, and the best approach depends on the specifics of the situation and the resources available.

At John J. Malm & Associates, our Illinois personal injury lawyers help clients navigate complex accident claims, including cases involving uninsured defendants. Our team in Naperville and St. Charles is dedicated to exploring every available option to secure compensation for our clients. If you’re facing a situation involving an uninsured defendant, contact us today for a consultation. We’re here to help you understand your rights and pursue the best path forward to maximize your compensation.