Previous Uninsured Division (UD) case studies have focused on individual examples from the claims side of the division. However, once the claims are resolved and a judgment has been issued, the UD Collections team takes over. These collections can span surprisingly long periods of time.
Driving without insurance might be a risk some people are willing to take in the moment, but the long-term consequences can follow for decades. At Maryland Auto Insurance, the work of the UD Collections Department highlights just how lasting those consequences can be.
What The Uninsured Division Does
The Uninsured Division, historically known as Unsatisfied Claims and Judgments (UCJ), has been in place since before the Maryland Automobile Insurance Fund was established. Although the UCJ name is still widely recognized, Maryland Auto, who facilitates the Uninsured Division on behalf of the State, now uses UD for the collections function to reflect its connection to the UD Claims Department, which manages cases prior to judgment.
The UD deals with cases involving uninsured motorists who were found at fault in an accident involving another uninsured party. These cases often involve vulnerable individuals such as pedestrians, passengers, or other uninsured drivers who suffered damages from the accident.
Once the UD Claims Department obtains a court judgment against the uninsured motorist, the UD pays the victim the amount awarded and then the case is transferred to the UCJ Collection Department. From there, the team works to recover the judgment amount and any accrued interest.
$44 Million in Outstanding Judgments
Today, there is approximately $44 million in outstanding judgments tied to uninsured motorists. Some of these cases date back decades, the oldest stemming from an accident that occurred in 1960.
Unlike many other types of legal claims, these judgments do not expire with time under Maryland law. To ensure they remain active in the court system, they are renewed every 12 years. This means a person who was found responsible for damages while driving uninsured may still be responsible for paying that judgment many years, even decades, later.
Judgments Can Resurface Years Later
In many cases, payments occur long after the accident itself. Often, a judgment resurfaces when a property transaction, estate settlement, or financial matter reveals a lien tied to the unpaid judgment.
Here are several examples collected within the past three years:
$12,858 was collected from an accident that occurred in 1970 when a title company needed a lien removed before selling the uninsured motorist’s property.
- Original judgment: $10,000
- Total paid over time: $30,600
$30,000 was received from a 1968 accident through an estate claim when family members sold two of three properties owned by the deceased uninsured motorist.
- Original judgment: $20,000
- Total paid: $45,575
$15,000 was collected from a 1973 accident when the uninsured motorist submitted a compromise payment.
- Original judgment: $40,000
- Total paid: $67,737
$8,625 was received from a 1974 accident when a property sale required clearing a lien from the estate.
- Original judgment: $7,512
- Total paid: $19,250
Not every case result in a long-term collection. Many debtors opt to enroll immediately in payment plans with the UD Collections team, allowing them to pay off their judgement over time and avoiding the added costs that compound over the course of longer collections.
Interest Adds Up Over Time
Another factor that significantly increases the cost of uninsured driving is the interest charged on judgments.
- Judgments issued before July 1, 1987, accrue interest at 4% annually.
- Judgments issued after that date accrue interest at 10% annually.
Over decades, this interest can substantially increase the amount owed, sometimes doubling or tripling the original judgment amount.
A Long-Term Consequence of Driving Uninsured
The work of the UCJ Collection Department demonstrates an important reality: the financial consequences of driving without insurance do not simply disappear with time.
Unpaid judgments can remain attached to an individual’s financial record and may surface during events such as:
- Selling property
- Estate settlements
- Title transfers
- Other financial transactions
In many cases, people may not even realize the judgment still exists until a transaction is delayed by an outstanding lien.
Maintaining Auto Insurance Protects Your Financial Future
While uninsured drivers might initially avoid the monthly cost of insurance, they often overlook the hidden financial risks. Accidents involving uninsured drivers can lead to court judgments, property liens, and interest that accumulates for years, or even decades.
The goal of Maryland Auto Insurance’s Uninsured Division is not only to collect on these judgments but also to highlight an important lesson: maintaining auto insurance protects not just other drivers, but your own long-term financial future.
Choosing to drive insured today can prevent a financial obligation that might follow someone for the rest of their life.
