I had an accident and didn't have insurance can the insurance Co. of the other driver suspend my license?

Question

so last year I got into an accident and when I called my ex husband to give me the insurance information he said he had taken me out of the policy. so of course I did not have insurance. now I have to pay over 5 thousand to the other parties insurance company. well I dont have that kind of money I have told them I can only pay 75 a month. well they are now telling me that if I dont pay that they will have my license suspende. can anyone tell me if that is legal or even if they can do that. I need my license I have to go to work and take my kids to school. its not like I dont want to pay its just that I dont have that kind of money. please no negative answers... this is a serious matter.

thank you in advance to those who help out

Answer 1

The insurance company can not take  your license but the state will. And you are at their mercy on payments. You should never trust some one else to make sure you have insurance.

Answer 2

The insurance company can't suspend your license. However, they can alert the DMV and the police who CAN and most likely WILL. Go find the local legal aid place in your city and get a lawyer. Are any of your kids with this ex-husband? If so, he is being neglectful thinking of only himself and not of the kids that are riding around in an uninsured vehicle.  

Answer 3

I don't know if it's legal.  I thought that only a court could do that.  In court, you could explain to a judge why you didn't have insurance, when you thought you did.  As long as you have current insurance, covering you from the time you found that you had no insurance, a judge could be lenient with you and let you keep your license.  

Tell the insurance company that you won't have any money for them if you can't get to work.  They will bankrupt you, and you will never be able to pay.  

Do you have an attorney, maybe from the divorce, who could help you in this?

Good luck!

Answer 4

How can someone "take me out of the policy" ?  Cars are insured not drivers.  Are you sure you were not insured?  Did you have permission to drive that car? did you have a valid license?  if so, you should be insured if the car had insurance on it.  You need to look further into this.

Answer 5

I own a company that handles claims against uninsured drivers for insurance companies. MSAD gave you good advise.

Did you actually try to present a claim to the insurance company that your ex says he dropped you from. If you haven't then you need to do that ASAP.

In some states if your ex is still listed as a owner of the car you were driving he could have his license or registration suspended too.

If you don't voluntarily come to some kind of settlement with the insurance company they will ask the state to suspend your license. Then they will probably sue you and add court costs, lawyer fees and interest to the original amount. Trust me you don't want that. It could easily add thousands to what you owe.

The company is holding all the cards here. So if they don't agree with your $75 per month offer they don't have to accept it. Try to find some way of paying more per month or beg or borrow a few grand and offer them $3500 to $4000 to settle.

Whatever, you do don't let this slide. It will only get worse AND much more expensive.

Good Luck    

Answer 6

Only the state can suspend your license, the other insurance company can't. However, they can notify your state DMV that you were driving with no insurance and the penalty for that may be suspension of your license. You are in a serious situation here.

Answer 7

Yes they can suspend your license.

Insurance companies do it all the time. I've done it.

The insurance company contacts the dmv - files the appropriate forms showing you did not have insurance and the dmv will suspend your license. (the forms and guidelines differ from state to state - but just about every state will do it)

That's what happens when you drive w/o insurance and cause damage/injuries to other people. You will have to pay the insurance company back and pay fees to your dmv to get your license back. It will end up costing more than the 5000 the insurance company is looking for.

Most insurance companies will not accept less than 100 per month on a re-payment plan. I suggest you look at your budget and see where you can cut it some more and see if they will accept 100 per month.

Or

Many companies would rather get a lump sum payment than have you make monthly payments. That way they don't incur the costs of monitoring the payments.

If they are looking for 5000 - they may be willing to accept a lesser lump sum payment and call it even. So - see if they would be willing to accept 3500 - 1 time lump sum payment in exchange for calling it even. They may counter you but there is a good chance they will accept a little less if you pay lump sum.

Since the Ex took you off the insurance without telling you -- see if he'd be willing to pony up some of the money.