Expert: Doctor Settlement - 7/21/2007

Question
I just received a ticket for not having insurance while driving. Basically I hit the guy in front of me (small amount of damage to his car, nothing to mine), and he called the police. The policeman wrote up a "Traffic Collision Report" stating I didn't have insurance, etc., then wrote me a traffic citation (says it's an infraction) for not having insurance at the time.

While this happened my mom was actually -getting- me in insured so I got insured maybe half an hour to an hour after the accident happened. The citation he gave me is just a "Notice to Appear" that says I need to go to court.

What I'm wondering is am I going to have to pay the guys insurance company for damages and how much is the court probably going to make me pay for not having insurance at the time (I actually might have had insurance but I definitely didn't have proof on me).

Answer
Hi Sean,

You have two questions and the easiest is the money due for the accident.  Just make arrangements to pay for that damage as soon as you can so that you avoid their company filing a "No Insurance--Financial Responsibility" notice with your state department of licensing or motor vehicles.  

Some department at your state government will receive such a notice from anyone damaged by someone without insurance and that right extends to the insurance company that paid for the other guy's repairs.

That department will then make you pay off the damages or post money, OR THEY WILL SUSPEND YOUR LICENSE.  Plus, you will have to have SR-22 filing for financial responsibility.  Hence, your cost of insurance will increase since SR-22 filing costs more money (higher risk).

Hence, it is best to be proactive with that company---or better yet---maybe your victim has not yet reported it to HIS insurance, so you could give him a call.  

By the way, if that is the case and you work out a settlement with him, BE SURE TO WRITE ME AGAIN BEFORE YOU PAY HIM AS I WANT TO MAKE SURE YOUR RELEASE YOU MAKE HIM SIGN INCLUDES PERSONAL INJURY, not just property damage.

Another advantage of being proactive with his insurance company is that you can convince the adjuster that you WANT to pay and hence, you might be able to pay off over three months or so.

NOW, ON TO THE COURT.  That court is not going to charge you a dime.  Tell the truth, that you thought you were going to be insured by then with your Mom.  Show your current insurance, effective the date of the accident.  Get your Mom's agent to prepare a two sentence letter that says you were insured at such and such a time and date.  Or that she applied for insurance then.  Take that to the court.

I would call the clerk of the court and ask him about the policy of the judge regarding such tickets, especially since you thought you were insured already, and in any event you were insured before the policeman ever filed his report.  See what the clerk of the court suggests.  I don't think you will have to pay much, if anything at all.

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com