What happens if you're in an accident with an uninsured driver?

Car repairs can be costly, and without an insurance provider to cover the expenses, you’ll need to pay for them yourself. Depending on the severity of the accident, costs could range from a few hundred dollars for minor dents to thousands for major structural damage. If the car is a write-off and needs to be replaced, you could be liable for the full cost of a new vehicle. If multiple vehicles were involved, your financial liability could be even higher.

If the other driver or a third party such as a passenger, pedestrian, or cyclist is injured in  the crash, you could be responsible for covering their medical expenses too, including emergency treatment, rehabilitation, and lost income due to time off work. 

While compulsory third-party (CTP) insurance covers some injury-related claims, it does not pay for property damage or your own medical costs.

If you cannot pay for property damage, medical expenses or other losses caused, the other party (or their insurer) may take legal action against you to recover this from you. This could result in a court order requiring you to make payments or, in more severe cases, enforcement actions like asset seizure or wage garnishment (where a portion of your wages is paid to the other party). Having a court order against you or significant debt could impact your credit rating or ability to get a loan in the future. 

Criminal charges could also apply if the case is particularly serious, such as involving reckless driving or significant injuries.

A letter of demand is a formal request for payment sent by the other driver or their lawyer. It outlines the amount they are seeking and includes a deadline for payment. Ignoring a letter of demand is never advisable, as it could lead to further legal action. It’s important to seek legal advice as soon as possible to understand your options and negotiate a fair outcome. While we don’t act in property disputes, we may still be able to assist in some way if you need guidance.

If you’re unable to pay the full amount upfront, you can try arranging a payment plan with the other party. This allows you to make manageable payments over time rather than face immediate financial hardship. Working with a lawyer to prepare a written agreement can help protect you from further disputes.

If you’re unable to meet your financial obligations, the other party may escalate the matter to court. A judge could order payment through wage garnishment or require you to sell assets to cover the debt. If you’re experiencing financial distress, seeking professional legal or financial counselling may help you explore alternative solutions.