If the Other Driver in the Crash Didn’t Have Insurance, Can I Garnish Their Wages?

Getting injured in a car accident can be stressful, but discovering that the at-fault driver lacks insurance can be devastating, as you wonder how you are going to pay your medical bills. Unfortunately, this scenario is common in Louisiana, where 13.7% of drivers were uninsured in 2022.

If you find yourself in this situation, you might be wondering about your options for compensation, including whether you can garnish the at-fault driver’s wages. A New Orleans car accident lawyer from Dudley DeBosier can walk you through your options and help you file a claim to help ensure you receive compensation for your injuries.  

How a Standard Car Accident Settlement Works

Typically, car accident settlements are paid out by the at-fault driver’s insurance company. These settlements are often capped at policy limits because most individual drivers don’t have the personal funds to pay damages like medical bills or lost wages without the help of their insurance.

For example, imagine you’re hit by a driver whose insurance coverage is limited to $50,000 for bodily injury, but your medical bills and other damages add up to $75,000. This situation could leave you with $25,000 in unrecoverable damages.

When Can You Pursue Compensation Outside of Insurance?

If the at-fault party’s insurance does not cover all your damages, you can seek compensation from their personal assets. This is often necessary when the driver is uninsured, their policy limits are too low, or their insurance company denies your claim.

Seeking compensation from the at-fault party usually means initiating a personal injury lawsuit. This process includes:

• Consulting a skilled car accident attorney to represent your interests
• Gathering evidence like medical records, witness testimonials, and police reports to build a strong case
• Demonstrating the extent of your damages and the other party’s fault in court

If the court sides in your favor, the at-fault driver must pay you the damages awarded. Often, this means placing a lien on their property or seizing funds from their bank account.

When Would a Settlement Involve Garnishing Wages?

Wage garnishment might be an option if you’re awarded a judgment in a lawsuit and the at-fault driver can’t pay out-of-pocket. This legal process allows a court to order that a portion of their paycheck be redirected to you to settle the debt.

In Louisiana, garnishment generally cannot exceed 25% of the debtor’s disposable earnings. To start this process, you first need a court judgment; then, you can file for a wage garnishment order. If the court approves, it will direct the other party’s employer to withhold funds from their earnings.

However, not all income can be garnished. Social security, unemployment benefits, and certain pensions are off-limits, protecting essential income. If the other party earns less than 30 times the federal minimum wage per week ($217.50 or less in 2024), their wages cannot be garnished for consumer debts.

Alternative Options for Covering Your Damages

Given the challenges of collecting money from an uninsured driver, exploring all available options is wise. Our attorneys at Dudley DeBosier Injury Lawyers can review the following sources with you to determine the best option for financial compensation:

• Uninsured/Underinsured Motorist (UM/UIM) Coverage: If you have Uninsured/Underinsured Motorist (UM/UIM) coverage on your auto insurance policy, it can help cover your damages when the at-fault driver lacks sufficient insurance.
• Medical Payments Coverage: This optional coverage on your auto insurance policy can help pay for medical expenses, regardless of fault.
• Health Insurance: Your health insurance can cover your medical bills in the meantime, though you may need to reimburse them if you later receive a settlement.
• Louisiana Medicaid: If you meet income requirements, you may be eligible for Medicaid to cover your medical expenses.
• Louisiana Crime Victims Reparations Fund: If the accident resulted from a crime (like drunk driving), you might be eligible for compensation from this fund.

Get Legal Guidance for Your Uninsured Motorist Claim

Dealing with an uninsured motorist claim can be both complex and frustrating. The auto accident lawyers at Dudley DeBosier know what to do in these challenging cases. We can help you navigate all avenues for compensation, from pursuing wage garnishment to maximizing your UM/UIM coverage.

Contact Dudley DeBosier Injury Lawyers today for a free case review. Our team can evaluate your case, explain your options, and fight tirelessly to help you receive the financial support you deserve.

Disclaimer: This content has been reviewed by Chad Lederman, Director of Legal Operations at our New Orleans office.

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