Let us say you were in a severe vehicle accident, and the other driver suffered injuries that might have killed them. Now, suppose you were entirely responsible for the accident. It goes without saying that you would feel horrible about it. While you wait for the lawsuit to get going, you may be wondering, “Can I lose my house because of this vehicle accident that was my fault?
This is a common fear of at-fault drivers whose carelessness, even unintentional, has resulted in severe harm to themselves or their passengers, or even worse, a fatality. Will your auto insurance policy cover all of the damages? For more information, contact Oaks Law Firm.
What are the chances of losing your home in an at-fault car accident?
In order to determine if you could lose your home as a result of an accident that you caused, you need to understand how laws work on insurance coverage, comparative fault, and liability function. The amount of damages awarded to the plaintiff in an automobile accident will be significantly affected by your insurance coverage as well as your portion of the blame.
Your state may follow no-fault laws compared to other states. Since there is no allocation of guilt, the at-fault driver’s negligence results in damages. However, there is a modified system of comparative blame, which may have an impact on the allocation of damages and liabilities.
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Responsibility and Comparable Fault
The 51% Bar Rule, also known as a modified comparative fault, prohibits a party in an automobile accident from seeking damages claims if they bear 51% of the responsibility for the collision’s cause. They can still demand compensation if they are determined to be only partially at fault, but the amount will be reduced according to their responsibility.
For example, the amount of damages that a party is allowed to obtain is reduced by the percentage that they are considered to be 25% at fault for the collision. They will get $75,000 if they are found 25% responsible but are awarded $100,000 in damages.
The following factors affect each driver’s liability:
- Police accident reports
- Images from the accident scene
- Statements from witnesses
- Expert testimony on accident reconstruction
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Car insurance policies
In the case that you carry full responsibility for the crash, your car insurance plan will determine whether you face the risk of losing your house. The seriousness of the other driver’s injuries and the severity of the collision will influence how effective or not your auto insurance claim is. Sadly, a lot of residents have the bare minimum of coverage, which is as follows:
Liability for bodily injury (BI):
- $25k for each accident survivor injured
- $50,000 in total for all accident-related injuries
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Personal Accountability for Losses Exceeding Coverage
If you have to pay for any losses out of your own money, it will depend on the level of your auto insurance coverage. In a lot of situations, limited liability insurance will not be adequate to pay for all requested damages in a severe auto accident.
The plaintiff may sue you for the amount they are due if you are found to be at fault for the collision and the damages examined to them above the coverage limit of your auto insurance. The court may hold you liable for extra damages that your insurance coverage fails to cover if they succeed in the lawsuit. The victim can bring a lawsuit to impose the award. This might consist of:
- Garnishment of wages
- Liens imposed on real estate
- Taking Control of Property
This means that in order to compensate for the additional damages your vehicle’s insurance policy did not cover, your bank accounts, investments, and potentially even your home could be seized. Unfortunately, this does imply that you might lose your home if you are found accountable for a vehicle accident that leaves you with a significant judgment.
