Expert: Richard Hixenbaugh - 10/21/2011

Question
Dear Mr. Hixenbaugh,

I was driving a car that rear-ended a van tonight in Chicago. I did not have insurance. It was a fender-bender on a rainy day; no one was injured. There was some damage to the van's rear (lights, rear door, etc.). The driver from the van and I filed a police report.

I am a graduate student and, like most uninsured drivers, I worry about the cost of what will happen now. I know I'll have to pay a fine for driving without insurance when I show up in court. My main worry has to do with the other driver's insurer. The driver of the van is amicably disposed toward me, but he says he needs to tell his insurer. My question is: What happens now? Is it better for me to try to borrow some money and try to pay the van's owner whatever the body shop estimates would be repair costs and try to dissuade him from filing a report with his insurer? The van's driver said he'd need to file with his insurer tomorrow and that he'd give me a call with an estimate before than if he can.

I am concerned that the insurer will "go after" me.  Which brings me to my main question for you: When insurers sue uninsured drivers, do they sue for much more than the actual costs of car repair?

I'd appreciate your reply and any advice you can give me.

Thank you.

Agnieszka

Answer
Hi Agnieszka,

If a claim is filed with the vans insurance, they will pay for the cost of the repairs. The insurance company will then come to you to request reimbursement. At that time if you appear cooperative, you will be able to simply repay them for what they have paid out. It may even be possible to worg out a payment arrangement. If you do not pay or work out a payment arrangement and the insurance company files suit, they will sue for the actual cost of the repairs plus the court costs, plus their attorny's fees. The attorney fees can add a considerable amount.

In addition, you should be prepared for the possibility that you drivers license will be suspended or revoked for have an accident without insurance.

The best course of action would be for you to pay for the repairs. Autobody work is expensive. You should plan on it costing $2000 to $4000. You may also have to pay for a rental car while the van is being repaired.

I hope this helps
Richard Hixenbaugh