Car accident when I wasn't insured for business?
I had been doing a bit of delivery driving to make a bit of extra money and hadn’t realized I should have had business insurance cover on my truck. I got into an accident where I rear ended a car. As I hadn’t taken out business insurance I have no cover. The girl who’s car I collided with has an estimate for $6000 worth of damage and expenses.
A friend has advised me that without insurance cover I’m on the hook to pay for the damage myself and as I don’t have the money to pay her up front, he says the most likely situation is that she will sue me through the small claims court as she could do this without a lawyer and I would then likely have to pay through having my wages garnished.
Is he advising me correctly?
- lucyLv 710 months agoFavourite answer
All personal auto policies have an (exclusion) that won't pay "in the course of business". If I had to guess, driving a truck, you are a pizza driver, since with Uber or Lyft, I "think" they make sure that you have a separate/business policy to drive for them and they don't/allow trucks?
Rear end, clear fault, no defense. And (NO) you owe for the FULL amount, not just a deductible. If her insurance pays, they go after (what) insurance pays Plus the policyholders deductible. Is the $6,000 estimate from (her) insurance company, or is it from her only? If, from the insurance, then it is the right amount, but if she got it, then it is (possible) it is too high. If a body shop knows that insurance is not paying, then they could charge more for labor, or instead of used parts, then charge for new parts that cost more.
What expenses is she submitting with the estimate? The only other expense she would be entitled to is for a rental car while her car is in the shop for repairs. If she is claiming lost wages to get estimate or time off work, then NO, she is not entitled for that, nor gas etc. The only time you can claim lost wages is (IF) she was injured and unable to work.
Depending where you live, in (most) states, the MAX you can claim in small claims court (no lawyer needed) is $5,000. So even if the amount is $6,000 and if the max is $5,000, then she cant get more in small claims court. "Most" states, if she gets a garnishment, then I "believe" the max is 25%.
Now (if) her insurance pays, would be better, since most insurance companies will set up a payment plan to pay back the amount that you owe, say in 12 monthly payments.
These are the facts, good luckSource(s): retired auto adjuster
- Common SenseLv 710 months ago
You should have your vehicle insured. No one needs to know you were delivering anything when you had an accident. I think you have NO insurance at all.
Anyway, yes you will have to pay, either in installments or have your wages garnished. If you are self employed and do not get a payroll check, you will be ordered to pay directly to the victim.
- Anonymous10 months ago
WHERE matters. In MY State your drivers license is suspended until any damages caused while you were driving uninsured are paid in full. If she enters into a payment plan with you in MY State you are suspended until all the terms are met.
You are asking about damage to the car. What about personal injuries? Is she claiming any?
In SOME States she can get a Judgment and lien your salary, your car, your home (if you own it).
WHERE is the bigger issue - State law prevails.
- Anonymous10 months ago
The reason this fool knew they were not covered commercially is because this fool did not have any insurance PERIOD, right?
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- STEVEN FLv 710 months ago
Even WITH insurance, you are personally liable for the damage. Whatever insurance you have is liable to YOU for what is covered. Paying the party YOU are liable to directly is only for convenience.
That said, if you admit liability, she may accept a payment plan instead of going to court.
Even if she sues, if you show up in court with a reasonable payment plan, the court is likely to approve it without ordering garnishment.
- NosehairLv 710 months ago
So how does your insurance company know you were using your truck commercially? Why would you let them know? Actually if the total bill for a rear end collision, for which there is almost no defense, is only $6000 you got off very cheap. So borrow some money and pay it off and learn to keep your mouth shut about your liabilities.
- SlickterpLv 710 months ago
He is largely correct, yes.
- 10 months ago
I don't understand... Why your regular car insurance would not cover it. But ask ask ask. Besides, I would at least ask if the person whose car you hit could get her insurance to pay, of course you would pay her deductible.
- xxx000auLv 710 months ago
You own a truck.
You agree to take some items from point A to point B for payment.
Why then did you even disclose this. Why not just say you were driving to a friedns place when the accident happened.
How ever you pay it, you need to pay it.
What I or others think is the right way to go really does not matter, its what arrangements you and her insurer come to.
- Bone AloneLv 710 months ago
How is your insurance suppose to know that you were doing a delivery unless you tell them. Lie and don’t give any extra info that the insurance doesn’t need to know. Lie, lie, lie.
If you don’t have insurance then in small claims, the most she can sue for is 5000. He’s right that you’re responsible for the repairs. You’re at fault.