Q: If I carry the state minimum auto insurance but someone sues me in court for more, what happens if I don’t have it? If I own only the clothes on my back, rent, don’t own my car, have no assents, and live off of $1,000 Social Security Disability a month, am I known as “judgment-proof?” What if someone sues me for a car accident but I have no real assets to take?
A: A person can certainly be sued for more than the limits of their insurance policies and regardless of the amount of the law suit, your insurance company must defend you in the action. At present, it appears you are judgment proof which means that if the plaintiff wins their case against you for an amount higher than the insurance will cover, then they may have little hope of actually collecting on the judgment. If a verdict is obtained against you that exceeds your insurance and collectible assets, the attorney for the person suing you may file a notice of judgment that would allow the judgment to be collected in the future if you ever become solvent and acquire significant assets.
– ATTORNEY GERRY LEESEBERG