Can My License be Suspended for Unpaid Insurance Claims? There are many reasons why your licence might be suspended as a driver. It is mainly for the safety of other people on the road. You might get your licence suspended if you commit any offence temporarily, but you can simply apply for it to be suspended. Why are there so many things that can cause suspension? Can my licence be suspended for unpaid insurance claims?
Hello guys and welcome to the article. Today we are going to be asking ourselves the question if an insurance company can suspend our driver’s licence. Is it possible for our driver’s licence to be suspended if we have an unpaid claim? If you want to find out the correct answer to this question, simply read this article to the end.
Can My License be Suspended for Unpaid Insurance Claims?
To answer your question, it is important to know that an insurance company does not have the power to suspend your driver’s licence. Whether you have an outstanding insurance claim that is unpaid, insurance companies are not responsible for suspending your driver’s licence. However, an insurance company can decide to report an unpaid claim to the Department of Motor Vehicles (DMV).
It is the DMV that has the power to suspend your driver’s licence if you have committed any offence, like not paying a claim. And to be perfectly clear, if you have an unpaid insurance claim, the DMV has the right to suspend your driver’s licence, so the answer is yes. The DMV is the government’s decision-making licencing agency and has the power to suspend your driver’s licence.
Suspending a driver’s licence to force a claim payment
Insurance companies or ordinary individuals can decide to have a driver’s licence suspended so that they can force the person to make payments. This is a common practice in the United States of America so that an individual is compared to making claim payments if they have been in an accident. After winning a small claims case, the money that the court awards you is called a judgement.
If the individual that caused the accident refused to pay the judgement, then he is a doctor and you can simply ask for his licence to be suspended.
When can I decide to have my driver’s licence suspended?
It is very easy to decide to have a driver’s licence suspended if the judgement debtor refuses to pay. One thing is for the court to award you a judgement reward; another thing is for the judgement debtor to refuse to pay. Therefore, if he or she refuses to pay, you can simply ask the Department of Motor Vehicles to suspend their driver’s licence.
How to suspend a driver’s licence for an unpaid claim?
There are several steps that you need to take in order to successfully suspend a judgement debtor’s driver’s licence. These steps are listed below for you to carry out:
- Visit your local DMV office or simply head over to their website to get the form.
- Get form DL 17, titled: Notice of Unsatisfied Judgment or $1000 or less, as the case may be.
- After that, fill out the form.
- Once you have done filling out the form, take it to the Small Claims Clerk’s office and let them clarify it.
- Now request a certified copy for yourself.
- Pay the necessary fee if needed.
- Finally, mail the DMV form and the notice to the DMV mail address.
How long does it take for the driver’s licence to get suspended?
It is going to take about 90 days after the judgement form has been received by the DMV to properly suspend the driver’s licence of the person involved. Note that the driver of the vehicle is the one whose licence will be suspended, not the owner.
On the other hand, if the judgement amount is more than $1,000, the driver’s licence of the defaulter would be suspended within 30 days.
What happens after I have made the forms to suspend the driver’s licence?
After you have mailed the form to the DMV asking them to suspend the driver’s licence of the judgement debtor, they will give the person a limited time frame to pay. However, if they refuse to pay, the period of time that I have listed above will go into effect.
How do I get my licence back as a judgement debtor?
After receiving your licence suspended as a judgement debtor, to get it back, the first thing you need to do is to pay the judgement amount in full. Once you have done that, you can now get a certified copy of the satisfaction of judgement from the court and send it directly to the DMV.
This is so that the judge can grant you a court-ordered instalment payment. When that is done, you need to submit a reissue fee, a certified copy of the instalment order, and a form SR-22 which has been filled out by the insurance company. Once all these are done, your licence will be unsuspended.
Frequently Asked Questions
Can my licence be suspended for an unpaid claim in Florida?
Yes, your licence can be suspended for an unpaid insurance claim, even if you are in Florida. However, you should not wait until your licence is suspended before paying out your judgement.
Can my licence be suspended for an accident in California?
In all the states in America, the DMV, which is the Department of Motor Vehicles, can suspend anybody’s driving privileges if they cause an accident. This is especially if the accident resulted in the other driver being labelled as a negligent operator for our children’s too many points on their driving record.
How do you get around a suspended licence? Can My License be Suspended for Unpaid Insurance Claims?
To get around to why your licence is suspended, you need to apply for a restricted driver’s licence. Or you can simply decide to use public transportation or ride-sharing. If that is not enough, you can make use of carpooling or walking and biking.
Can an insurance company suspend your licence in Arizona?
Your insurance company cannot suspend your licence. However, they can simply report you to the DMV, who are the ones responsible for suspending licences. Therefore, if you have an unpaid insurance claim, they can simply report you to the Department of Motor Vehicles so that they will suspend your licence.