Auto Insurance Claims: No Insurance, public roadway, heading east

Question
A few months ago, I was pulling out of my apartment complex (turning left, heading east). It was rainy, so road conditions were not perfect, visibility was not perfect. As I was pulling out (uphill), my tires spun a bit due to the wetness. This delayed me a few seconds and by then a car (that could not have been going the 30 mph limit) had come along(heading west) on the road I was pulling on to, thus causing me to still be in the process of pulling out as he approached. Instead of slowing down, he attempts to swing out into the other lane and go around me and when he ralized that would not work, swung back into his lane and smashed into my left rear side. No injuries, no airbags deployed, his car drove off fine, mine - not so much. I was uninsured at the time, my insurance had expired months ago and I was unable to afford to renew it yet. They determined that I was at fault (according to the cop it was merely because I was pulling out of a private drive onto a public roadway) and sent me a bill for about $4,000. I paid out of pocket to have most of my damage fixed, which cost about $300. Nationwide initially wanted me to send in a lump payment, then 3 smaller payments. I told them there was no way I could ever afford that. They then wanted $250 a month for a few months and then would settle for $100 a month. I told them I would try to do that, it was much more feasible than the other options. But my financial situation has yet to get better and has in fact gotten worse. It's been about 3 months now and I've yet to be able to make a payment. I do intend to take care of this, but I simply cannot afford to and have to keep having it pushed back. I think they are giving me a last chance to start making payments (I don't know how long they're willing to play this "Well we'll call you in 21 days and see how things are going and what you can pay") and I'm worried that they may take things farther and sue me or something. Will they turn this over to a collection agency and report it on my credit and so on or will they take more direct action? I don't know how to take care of this right now and be able to eat too! That's why I didn't have insurance in the first place! (I do now, by the way. Liability.)

Answer
Hi Kathleen,

The insurance company can do what ever they want to which includes: waiting to see if you eventually will be able to pay them, turn it over to a collection agence, report it to the credit bureau and file suit against you.

However, if you are not in a position to pay them and are barely able to bur food and pay your rent, you should not worry about any of the above. Take care of yourself first. There is nothing they can do to you that would have any effect on your life. Even if they sue you all they will get is a judgement. That simply means that you will not be able to sell or buy any property. Based on your financial situation it does not sound like you will be buying any property soon. Just keep doing what you have been doing. Acknowledge that you owe the money but are currently unable to pay. When you are in a better position you can contact them and make arrangements to start paying.

I hope this helps
Richard Hixenbaugh