What happens if I crash and don’t have money to pay in Texas?

If you’ve ever wondered what happens if I crash and don’t have the money to pay, you should know that you’re not alone, and it’s a very understandable question. Every year, thousands of people in Texas face this difficult situation, with potentially serious consequences.

Car accidents are a common problem in the state. A crash is reported approximately every 71 seconds, reflecting the common nature of being involved in one.

Among the leading causes, driver distraction played a key role in 11% of all traffic accidents in 2022, according to the National Highway Traffic Safety Administration (NHTSA).

Furthermore, the number of drivers fleeing the scene of an accident has been increasing. That same year, 14.5% of accidents involved a hit-and-run driver, an increase compared to the 12.1% recorded in 2019, before the pandemic.

This type of behavior worsens the consequences of the accident and constitutes a crime. In this article, the team at Abogado Dang, Accident Attorney, will explain what to do if you face this situation, the possible penalties, and how to protect yourself legally.

What happens if I cause an accident and can’t pay?

Crashing without having the resources to pay for damages can result in fines and legal consequences, which vary depending on the severity of the accident and local laws.

Common consequences include significant fines for not having adequate insurance or not covering damages. These can increase if the driver is found to be fleeing the scene.

In addition to financial penalties, a driver who cannot pay for damages is likely to face criminal charges. This is especially likely if they are found to have been driving under the influence of alcohol or drugs. Consequences can range from a driver’s license suspension to imprisonment, depending on the severity of the violation.

Another negative effect can be damaging the driver’s credit history, making it difficult to obtain future insurance or loans. In general, being unable to pay after an accident often leads to a chain of legal and financial problems.

Fines and consequences for crashing without being able to pay

When you crash and don’t have the means to cover the damage, both the stability of your present and your future can be at risk.

The laws are clear on this matter. Failure to have insurance or the necessary resources to pay for damages can trigger a chain of serious penalties. Here are some of the main consequences:

1. Legal sanctions

Laws vary by state, but generally include:

• Criminal charges: In many places, fleeing the scene of an accident is a felony (hit-and-run) if there are fatalities or serious injuries.
• Heavy fines: Depending on the severity of the incident, fines can exceed $5,000 in some U.S. states. In Texas, minimum liability insurance is required to operate a vehicle. If you don’t have insurance, you can receive fines of up to $350 for a first offense and up to $1,000 for a repeat offense.
• Loss of license: If you don’t pay for the damages, the Texas Department of Public Safety (DPS) may suspend your license until you cover the costs.
• Prison: In serious cases, the sentence can range from one year to life imprisonment if there are fatalities.

2. Economic impact

For those without the money to pay for the damages, the consequences can be devastating:

• Court debts: In addition to fines, there are legal costs and payments for damages to third parties.
• Insurance increase: If the driver is identified, their insurance premium could increase.
• Seizure of property: In some countries, the State may seize property to pay for damages caused.

3. Claims and civil liabilities

The injured party can file a lawsuit against you to recover the costs of the accident. If the court rules against you, you could face:

• Withholding part of your salary.
• Seizure of property.
• Negative report on your credit history.

Being in an accident without being able to pay can lead to legal and financial problems that affect long-term stability. It’s essential to have adequate insurance and know your rights to avoid even more serious consequences. Be sure to contact an accident attorney for further guidance.

What to do if you can’t pay for damages from a crash?

Facing a car accident with no money to cover the damages can be a daunting experience, but it’s critical to act immediately to mitigate the legal and financial consequences. Here’s what to do:

• Do Not Flee the Scene of the Accident
  Fleeing an accident is a felony in Texas. If you leave the scene, you could face criminal charges that include penalties of up to five years in prison under Texas Penal Code Section 550.021.
• Call the police and report the accident.
  Even if you can’t afford to pay, you should call the authorities to report the crash. Having an official report can help protect you from false accusations.
• Consult with an accident attorney.
  An accident attorney can help you understand your options and negotiate settlement agreements or reduce your liabilities.
• Consider financial assistance programs.
  Texas offers programs that can help if you can’t pay:
  – Payment plans: In some cases, you can negotiate with the affected party to pay in installments.
  – Bankruptcy: If you have significant debt, you may want to explore bankruptcy to avoid foreclosures and protect your assets.

Legal options for dealing with a traffic accident without money

Suffering an accident without financial resources is a problematic situation for which, fortunately, there are various legal options to avoid unmanageable debt.

These options may include mandatory insurance, lawsuits against the other party involved, and state assistance programs. Below are some available alternatives:

Minimum liability car insurance

In Texas, like most of the U.S., drivers are required to have liability insurance with a minimum coverage of:

• $30,000 per injured person.
• $60,000 per accident.
• $25,000 for property damage.

While being uninsured can put your financial stability at risk, some policies include optional coverages like Uninsured Motorist Protection, which can help cover medical and vehicle repair expenses if the other party doesn’t have insurance.

Accident lawyer who protects the rights of victims

If you have suffered injuries, call Attorney Dang to give the insurance companies a Bang!

Free consultation

Sue the other party if they were also at fault

If the other driver was partially responsible for the accident, you may be able to file a counterclaim or negotiate a settlement to reduce or eliminate your payment obligation. Texas operates under the principle of modified comparative negligence , which means that:

• If you are less than 51% at fault, you may be eligible for compensation.
• If you are 51% or more at fault, you cannot claim compensation.

In these cases, having evidence such as videos, witnesses, and police reports is key to proving the other driver’s responsibility.

Additionally, many law firms operate on a no-win, no-fee basis ; that is, payment is only made if the case is won, allowing for filing a lawsuit without any upfront costs.

State assistance programs for accident victims

Texas offers assistance programs for people who have been in accidents and lack the resources to cover medical and legal expenses. Some options include:

• Texas Crime Victims’ Compensation Program: If the accident involves a criminal act, such as a drunk driver, victims may receive compensation for medical expenses, lost income, and rehabilitation services.
• Medicaid and CHIP: In cases of serious injuries, victims may qualify for Medicaid or the Children’s Health Insurance Program if they meet income requirements.
• Hospital Payment Plans: Some hospitals and clinics in Texas offer payment plans or even charity care for uninsured individuals.

It is advisable to contact a specialized attorney to learn about all available assistance options.

How to avoid legal problems in the future?

To avoid facing penalties for not being able to pay for an accident, consider the following:

1. Get affordable car insurance

If the cost of insurance is an issue, look for low-cost options through state programs or insurers with affordable plans.

2. Drive with caution

Avoid speeding, don’t use your phone while driving, and obey traffic signs to reduce the risk of accidents.

3. Consult with a lawyer before a problem arises

Talking to a lawyer before facing a legal problem can help you better understand your rights and options.

Protect your future with the legal advice of Attorney Dang

Facing an accident with no money to pay can seem like a desperate situation, but there are legal options that can help you minimize the financial impact and avoid more serious penalties.

If you already find yourself in this situation, don’t flee the scene. Contact the authorities and seek professional support to explore alternatives such as payment plans or free legal representation.

Why choose Law Firm Dang?

• Free and confidential advice: From the very beginning, we offer free consultations so you can understand your legal rights and options.
• Legal representation with no upfront costs: If you decide to pursue your case, we work on a contingency fee basis, which means you only pay if we win your case.
• Commitment to the migrant community: We know how important it is to have an attorney who understands your needs and concerns. We specialize in helping migrants, regardless of their immigration status.
• Access to flexible financial solutions: We help you explore options such as payment plans or even out-of-court settlements that can reduce the financial impact of your accident.
• Proven experience in accident cases: With years of experience, we know how to negotiate with insurance companies and opposing counsel to achieve the best result for you.
• Aggressive advocacy to protect your rights: No matter the severity of your situation, we fight to get you the compensation you deserve and avoid serious legal consequences.

If you’re wondering, “What happens if I crash and I don’t have the money to pay?” the team at Attorney Dang, Accident Attorney, is here to help. We can offer you free consultations to find the best legal solution, regardless of your immigration status. Contact us today and protect your future!

If you found this article interesting, you can also read:

• What does “damaged” mean under Texas law?
• How to Manage Stress and Anxiety After an Accident in Austin

Information verified by lawyer Loc Dang

Loc Dang is a founder and member of our legal team. In this blog, Attorney Dang shares his expertise to guide accident victims.