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12. UNINSURED

If you are uninsured and the crash was your fault, or partly your fault, the other party will claim compensation from you for the damage to their vehicle or property.

Ask for copies of the repair quotations and if you think the amount is reasonable, arrange to pay the claim or pay by instalments. If you don't arrange to pay, you will probably be sued. You (or a solicitor) can defend the claim if you think you were not at fault or that the claim is too high. If you do nothing, the other party can obtain a judgment against you in your absence.

Once a judgment has been made against you, they can:
  Obtain an order that the debt be paid out of your wages (garnishee order)
  Seize and sell your property (under a writ of execution)
  Take action to have you declared bankrupt.
You can stop proceedings by applying at court that you pay by instalments or by arranging with the other party to pay part of the claim.

If you can't afford to pay

If you can't pay by instalments, and you have no assets to be seized or sold, there are two things you can do:

1. Write to the other side setting out your financial position. Point out that if they sue they are unlikely to obtain any money;

2. In some circumstances voluntary bankruptcy may be the best option (only after several attempts have been made to persuade the other side to drop their claim). Bankruptcy is a serious step, it is best to seek advice from a financial counsellor or solicitor before taking such action.

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