Imagine being involved in a serious car accident where the other driver sustains life-altering injuries, and you are found at fault. Understandably, you might worry about whether your personal assets, including your home, could be at risk.
This concern is common among at-fault drivers in Connecticut. If your negligence, even if unintentional, causes significant harm or a fatality, you may wonder if your car insurance policy will cover all the damages—or if your personal assets, including your home, could be jeopardized.
Understanding Liability and Insurance Coverage in Connecticut
To determine if your house could be at risk after an at-fault accident in Connecticut, it’s essential to understand how liability, comparative fault, and insurance coverage work in the state. Your insurance policy, as well as your degree of responsibility in the accident, will significantly impact how damages are paid to the other party.
Connecticut law requires drivers to carry the following minimum insurance coverage:
- Bodily Injury Liability (BI): $25,000 per person and $50,000 per accident
- Property Damage Liability (PD): $25,000 per accident
- Uninsured/Underinsured Motorist Coverage: $25,000 per person and $50,000 per accident
These minimums are designed to protect both you and other drivers on the road. However, in cases of severe accidents, these amounts may not be sufficient to cover all the damages, which could put your personal assets at risk.
Liability and Comparative Fault
Connecticut follows a “51% Bar Rule” under its modified comparative fault system. This rule states that if you are 51% or more responsible for an accident, you are ineligible to seek compensation for damages from the other party. However, if you are found to be less than 51% at fault, you can still seek compensation, though it will be reduced by your percentage of fault.
The determination of liability is influenced by various factors, including:
- Police Accident Reports: These reports provide an official account of the accident and often include the responding officer’s opinion on who was at fault.
- Photos of the Accident Scene: Visual evidence can be crucial in establishing the circumstances of the accident and determining fault.
- Eyewitness Statements: Statements from those who witnessed the accident can provide additional perspectives on how the incident occurred.
- Testimony from Accident Reconstruction Experts: In complex cases, experts may be called to reconstruct the accident and provide an analysis of fault.
Personal Liability for Damages Exceeding Coverage
If you are found liable for an accident and the damages exceed your insurance coverage, the plaintiff can sue you for the remaining amount. If they win the lawsuit, the court can hold you responsible for paying the excess damages that your insurance policy did not cover.
In Connecticut, potential actions to collect on a judgment include:
- Garnishment of Wages: The court may order that a portion of your wages be withheld to pay the judgment.
- Placing Liens on Property: A lien may be placed on your property, including your home, which could prevent you from selling it until the debt is paid.
- Seizing Assets: The court may allow the seizure of your bank accounts, investments, and other assets to satisfy the judgment.
This means that, in extreme cases, your personal assets, including your home, could be at risk to cover the damages not paid by your insurance policy.
What Happens if Your Insurance Coverage Isn’t Enough?
In severe accidents, especially those involving significant injuries or fatalities, the damages awarded to the plaintiff can easily exceed the minimum coverage limits.
If the plaintiff pursues legal action to recover this amount, and you do not have sufficient liquid assets to cover it, your home could be targeted as a source of payment. This scenario, while not common, is possible, especially in cases where the at-fault driver has significant equity in their home.
How to Protect Your Assets After an At-Fault Car Accident
If you find yourself in a situation where your insurance coverage is insufficient and you are facing a large judgment, there are steps you can take to protect your assets:
- Bankruptcy Protection: Filing for bankruptcy may offer protection against the seizure of your home and other assets. However, this option should be carefully considered, as it will have a significant impact on your credit and financial future.
- Negotiating a Settlement: In some cases, you may be able to negotiate a payment plan or a reduced settlement amount with the plaintiff. This approach can help you avoid losing your home while still meeting your financial obligations.
- Increase Your Insurance Coverage: One proactive step you can take is to increase your insurance coverage above the state minimums. This can provide greater financial protection in the event of a serious accident.
Conclusion: Can You Lose Your House?
While it is possible to lose your home due to an at-fault car accident in Connecticut, it is not likely in most cases, especially if you have adequate insurance coverage. However, drivers with only the minimum required coverage are at a higher risk if the damages exceed their policy limits.
If you believe you may be at fault for an accident that has caused significant injuries or property damage, it’s crucial to seek legal advice as soon as possible. At Vining Law, our experienced attorneys can help you navigate the complexities of liability, insurance coverage, and asset protection. Contact us today for a free consultation.
Disclaimer: This blog is for informational purposes only and should not be construed as legal advice. Consult with a qualified attorney for legal guidance specific to your situation.