Can I Lose My House Due to an At-Fault Car Accident?

Car accidents can significantly impact your physical and financial health. You may suffer injuries requiring long-term medical treatment, depending on the accident’s severity.

These injuries can affect your ability to engage in routine activities and jeopardize your income. For example, an electrician may be unable to work if they broke their arm or leg in a car wreck. 

Medical bills can add up quickly. Even if you have all the insurance you need, you could face thousands in out-of-pocket expenses for deductible fees and medication.

You may also have additional costs, such as repair or replacement costs for a vehicle you’re still paying for, and household expenses if you cannot care for your children during your recovery.

Since there are a lot of costs associated with car accidents, it’s natural to worry about additional expenses if you were at fault for the accident.

You may wonder if you can lose your house or other assets due to an at-fault car accident in Miami, Florida.

A car accident attorney can help you protect your personal assets, including your primary residence.

When a Lawsuit Puts Your Personal Assets at Risk

If you are involved in an at-fault accident, and the other driver files a car accident lawsuit against you, the court will give a legal judgment. This is the official decision that includes who won the case, and specifies the compensation you owe the injured party.

Typically, you will use your insurance coverage to pay the amount awarded in the judgment. 

However, if the judgment against you exceeds your policy limits, the other party can seize your personal assets. For example, if you receive a $250,000 judgment, yet your insurance policy limit is $100,000, they may pursue the remaining $150,000 from you.

The non-exempt assets they can go after include your:

• Bank accounts
• Non-homestead real estate, such as a second home or rental property
• High-value personal property, like jewelry, electronics, and collectibles
• Investment accounts, such as stocks, bonds, and mutual funds
• Vehicle if its equity exceeds the $1,000 exemption limit
• Wages

Generally, Florida’s law offers homestead exemptions for a primary residence. The state’s strong homestead protections can substantially protect your home when you need to satisfy a judgment.

Can You Lose Your House Due to an At-Fault Car Accident?

Florida protects homeowners who are at fault for a car accident. The state has clear guidelines to prevent an at-fault driver from losing their property if it meets their requirements based on the home’s location. Talking to your car accident attorney about the homestead exemption is the best way to ensure your home’s protected after an accident.

The Florida Homestead Exemption Protects Your Home

Florida’s homestead exemption, established under Article X, Section Four of the state’s constitution, prevents the forced sale of a primary residence under any process of law, including to satisfy a car accident judgment. 

To benefit from this primary residence protection, the property should be titled in your name and meet the specific acreage limits.

This asset protection law applies to a maximum of one-half acre of contiguous land for properties within a municipality (city limits), and a maximum of 160 acres of contiguous land for properties outside a municipality (rural areas).

Florida homestead exemption offers Florida residents powerful protection compared to the vulnerability of assets to legal threats. Protect your home from lawsuits by learning more about this law.

Role of Auto Liability Insurance Explained

If you are injured in a car accident, your personal injury protection (PIP) insurance will cover 80% of reasonable medical expenses, up to $10,000, regardless of fault. If you cause damage to another person’s property when driving your insured vehicle, your property damage liability (PDL) insurance will cover it.

Although not required in Florida, bodily injury liability (BIL) is another crucial insurance coverage. It covers injuries to others, including medical expenses and lost wages, among other costs.

If you are involved in an accident that causes severe damages to another person, your PIP and PDL may not be sufficient to cover all costs. BIL can cover the remaining expenses. It’s recommended to have a BIL policy, and pay beyond the minimum auto insurance coverage. 

Note that generally, your insurance company also has a “duty to defend” you in a lawsuit when the claim is within your coverage limits. Working with a car accident attorney will help you understand how your insurer needs to protect you, and spot when they act in bad faith.

The Role of Umbrella Insurance

An umbrella insurance policy offers an extra layer of protection beyond your primary insurance policies. This insurance will kick in when the liability limits of your primary policies are exhausted. For instance, when you receive a judgment that is higher than your auto insurance coverage.

This additional liability coverage can significantly protect your assets. The injured party in the accident you were at fault for might not need to go after your personal assets if you can pay the remaining damages using umbrella insurance.

You need to protect your financial future with such asset protection strategies.

What To Do After an At-Fault Car Accident

Florida law requires all vehicle drivers involved in an accident to take specific steps. These steps apply to all drivers, no matter who is at fault, and whether the car accident was an injury or non-injury accident involving property damage.

1. Remain at the Scene 

All drivers must stay at the accident scene. Moving the vehicles to a close, safe location may be necessary if leaving them in place poses a safety risk.

2. Call 911

You’re required to report car accidents to the police. Calling the police ensures a prompt accident investigation. Calling 911 also ensures you get the emergency assistance needed, for instance, if there’s vehicle entrapment or severe injuries.

3. Check to See If Anyone Is Injured

You are required to help anyone injured in a car accident. Talk to each driver and passenger and ask about their condition to get essential information you will need to provide when you call 911.

You should also seek medical care for yourself, whether or not you have visible injuries. Some symptoms may take hours or days to appear, so you must consider the possibility you’re injured. 

You may also suffer from mental health challenges after an accident, including anxiety, depression, and post-traumatic stress disorder (PTSD). Approximately 39% of car accident victims develop PTSD, and PTSD can cause confusion and guilt.

4. Gather Information

You’re required to exchange names, phone numbers, and insurance information with the other drivers. Gathering additional information at the scene is crucial in determining fault and avoiding legal troubles.

Furthermore, take pictures and videos with your smartphone. They can help establish how the accident occurred, and preserve vital details, such as whether traffic lights were out. 

Taking notes is another way to protect yourself. Accidents are traumatizing, and you may be in shock, have a traumatic brain injury (TBI), or other undiagnosed injuries. Therefore, you may forget crucial details after the accident. Making notes ensures you have the most accurate record possible. 

You should also get contact information for any witnesses at the scene, so your attorney can speak to them.

5. Call Your Insurance Company

Contact your car insurance company after your accident, so they can start an investigation.

6. Call a Car Accident Lawyer

Contact a car accident attorney from the scene. Your lawyer will ensure you follow all the essential steps to comply with the law and protect yourself.

What Assets Can Be Taken in a Car Accident Lawsuit? 

Anything you possess that has financial value is an asset. While people often think of houses and cars as assets, your assets could include investments, collectible items, funds in bank accounts, and digital assets, such as cryptocurrencies. 

At-fault parties liable for car accidents could have some assets seized to pay their judgment.

While your homestead may be exempt, creditors can repossess your vehicle or other assets, and sell these assets to pay your debts. Creditors can also place a lien against your assets, preventing you from selling them until your debt is resolved.

How To Protect Your Assets After a Car Accident

The best way to protect your assets involves taking steps before an accident. Ensuring you have sufficient personal injury protection (PIP) insurance protects you financially because your insurance can cover a settlement or judgment from a lawsuit. 

Car accident attorneys know Florida laws and understand how to limit your liability. That’s why calling an expert car accident attorney is one of the first things you should do after an accident.

Everyone’s case is different because multiple variables could impact how much responsibility an at-fault party has for their accident. Comparative fault applies to car accident cases in Florida, meaning multiple parties can be considered at fault.

Suppose you’re in a car accident, and an accident investigation determined you were 65% responsible for the accident. In comparison, Party A was 35% responsible. Party A files a lawsuit against you. The maximum compensation the courts would award would be 65% of the compensation available. 

Your attorney will investigate your accident and use statements from witnesses, photos, video footage, and other evidence to reduce your liability. If your attorney establishes that another party shares fault for the accident, they can protect your assets by limiting the damages you could be liable to pay.

You should also review your liability insurance policy to determine what damages your policy covers. Once you confirm which assets are protected and which could be seized, you can work with your attorney to determine how to protect vulnerable assets. This could involve filing a financial affidavit to demonstrate to the court that collecting the monetary judgment could cause severe financial difficulties. 

FAQs about car accident liability

Are there limits to how much a person can sue for after a car accident?

A person can seek three types of damages after a car accident. 

Economic damages are reimbursement for expenses, such as medical bills, lost wages, and childcare costs. This number is determined by adding together all bills stemming from the accident. Florida doesn’t restrict the amount of economic damages a plaintiff can seek.

Plaintiffs can also seek non-economic damages. Like economic damages, no cap applies to these damages. Non-economic damages award plaintiffs compensation for pain, suffering, and other ways the accident impacts their lives, such as their inability to enjoy favored activities.

Some cases allow plaintiffs to seek punitive damages. These damages punish the at-fault driver for negligence. Plaintiffs may receive punitive damages of $500,000 or three times the economic and non-economic damages awarded. The amount awarded will be the higher of the two options. 

Can You Be Personally Sued After a Car Accident?

Florida is a no-fault state, which reduces the volume of car accident lawsuits that go to court. Still, you can be sued if you were solely or partially responsible for a car accident. 

Can You Be Sued If Insurance Settles or Pays?

If your insurance company reaches a settlement and pays an accident victim, they usually forfeit the right to sue you. Lawsuits typically occur when the settlement offered by the insurance company doesn’t cover the amount of compensation the accident victim feels they deserve.

What Happens If You Lose a Car Accident Lawsuit?

Losing a car accident lawsuit means you’re liable for the damages awarded to the plaintiff. You can appeal the verdict, but if you lose on appeal, you’ll have to pay the amount the courts awarded.

What if I am sued for more than my insurance coverage?

Insurance protects people from lawsuit payouts. However, if your insurance doesn’t cover the amount awarded in the judgment, you may have to make additional payments to cover the judgment in that case. The plaintiff can also go after your unprotected assets to recover the amount owed. You may also face criminal charges if you don’t have the state’s required amount of PIP insurance.

Am I required to provide a financial affidavit after a car accident?

You aren’t required to provide a financial affidavit after a car accident in Florida. Your best option is to discuss this with your car accident attorney, and determine whether it’s in your best interests to file an affidavit.

How Miami’s best auto accident lawyer can help protect your assets and legal rights

When you contact Bernstein & Maryanoff, Injury Attorneys, you can be confident you’ll work with the best at-fault car accident attorney. Our legal team will use our investigative tools to ensure anyone sharing the fault of the accident is held accountable, which limits your liability in a lawsuit. 

Our team will answer all your legal questions and explain your options and the potential implications of your accident. We’ll help prepare the best personal injury defense possible to protect your financial future. Get help from an experienced asset protection lawyer in Miami today.

Sources:

FLA. STAT. § 196.031.

FLA. STAT. § 316.061.

Tull, M. (2019). The Risk of PTSD After a Car Accident. 

Whiplash. (2022).