Can You Lose Your House Due to an At-Fault Car Accident in Utah?

Losing your home because you caused a car accident in Utah, specifically in West Jordan, seems inconceivable, but this outcome is possible. If this is your concern, a consultation with an experienced car accident attorney is sensible. 

The good news is that your house isn’t immediately at risk if you are judged to be at fault in a collision. Utah laws are a bit more nuanced, and in the event of an at-fault car accident in Utah, the likelihood of a lien being placed on your property would depend on the specific circumstances and your insurance coverage. 

In addition, while a judgment lien can be attached to real estate in Utah, that doesn’t necessarily mean you can be forced to sell your home. If you’re concerned about liability in a car accident, an attorney’s advice can be invaluable. 

Read on to explore more.

Understanding Liability Insurance and Damages 

What you can lose due to an at-fault car accident in Utah depends on your auto insurance coverage. 

Utah is one of many states with a no-fault liability system. Here, injured motorists must turn to their own personal injury protection (PIP) insurance to be compensated for medical bills, lost income, and other expenses—and this is the case no matter who is to blame for a car crash.

A claim against you is only possible if the damages exceed the PIP limit. In that scenario, however, whether your home might be at risk hinges on the liability limits on your insurance policy. In Utah, the minimums effective January 1, 2025, are: 

• $30,000 in bodily injury liability per person or $65,000 per accident 
• $25,000 in property damage liability per accident 

If you haven’t extended your coverage, that’s the amount you can expect your insurance provider to pay. Should damages resulting from a West Jordan car crash go beyond that, you could face a lawsuit, as an injured motorist could sue you to recover the remainder.

If you are found to be at fault and unable to pay, a lien may be placed on your property – and if you don’t satisfy the debt, the court may agree to enforce the lien, resulting in a forced sale of your home.

A seasoned car accident in Utah attorney can protect your rights and interests, but that could be the result if you happen to be underinsured. 

What Happens If Damages Exceed Your Insurance Limits? 

If the at-fault driver’s policy doesn’t cover your damages completely, you have alternative options.  

Consult with a personal injury attorney at the first possible.  

They will be able to go over your options with you. Your attorney can advise you or handle a denied claim and identify individuals that share blame in a claim. You Can File Under Your Own Insurance Coverage.

Whether you have this choice will depend on what kinds of insurance policy you have: Uninsured/Underinsured Motorist Coverage (UM/UIM) if the negligent party that caused the wreck lacks sufficient insurance coverage for your injury.  

The more, the merrier in UM/UIM. It’s just a smart, cost-efficient thing to get, so you don’t wind up liable to pay for medical treatment you shouldn’t be responsible for after the fact. In Utah, you might have PIP insurance, which helps cover a portion of medical expenses and wages, regardless of who is at fault for the wreck.  

Note: Pursuing your insurance carrier might not be in your best interest if it increases your premiums depending on what type of insurance you have, however. There may be other negligent parties. The driver might have been on the clock during the course of the incident.  

(Their company may be responsible.) The vehicle the driver was driving might have been manufactured with a defective part.  

(The company that built the car can be liable). If roads themselves contributed to the wreck, a government agency would. We examine all aspects of a crash to find everybody accountable to pursue the most appropriate compensation from a client. Who was awarded compensation for the pain and suffering, and what did it include?  

The at-fault driver may not have enough – or sufficient – insurance but can still afford to compensate you. If you owe health care claims as well as have a medical lien (money your healthcare company wants in repayment for medical care), your lawyer may also be capable of facilitating the negotiation as well. 

Protection from the Utah Homestead Act 

In Utah, homeowners who are at fault in a car crash can often keep their property from being sold thanks to a homestead exemption. 

If your insurance is exhausted, the injured motorist must first win a lawsuit against you to attach a lien to your home. A judgment of lien could result in a foreclosure situation if the debt remains unpaid, but for that to happen, the motorist must ask the court to order you to pay.

The court could order a forced property sale, but as an experienced car accident attorney in Utah would tell you, the state’s homestead act may offer protection. 

Under Utah law, a portion of your equity in the home you live in isn’t touchable to satisfy a court judgment. That being so, it isn’t likely that you will lose your home due to an accident.

You might be ordered to liquidate other assets, though, and it’s worth noting that a judgment lien will remain attached to your home for eight years. So, if you were to sell during that period, you would have to pay the amount you owe to the lienholder from the proceeds. 

Can a Judgment Lien Be Put on Your House? 

Having a lien on your home can lead to different outcomes, ranging from a small problem to something more serious, like having to sell your home. 

In case a lien is placed on your home, you will most likely encounter one or all the following:  

• Sale: Depending on the kind of lien and depending on your local regulations, the entity placing the lien on your property may decide to sell your property in case you fail to repay the debt.  

• Impact on credit rating: Lien information is regarded as unpaid debts by credit bureaus; thus, your credit rating may be affected negatively. 

• Trouble selling or refinancing: It might be harder to sell or get a loan for your home if there’s a lien. Most buyers want to see that the home has a clear title, and lenders are less likely to offer a loan if the home could be taken away. 

• Priority in payments: If you sell your home with a lien, the money from the sale will go to pay the lien first, and then you’ll get what’s left. 

• Interest charges: Some liens add interest over time, so the amount you owe might keep growing until you pay it off. 

Other Assets You Could Lose After an At-Fault Accident  

If you get into a car accident where you are at fault, and you are sued, your insurance company will represent you as far as your insurance coverage goes. But, if the damages are greater than the insurance covers, then you will probably be forced to pay the additional amount personally.

This is what you could be facing: 

• Insurance defense: Your insurance company will hire an attorney to represent you in court, and they will pay your legal fees to the maximum extent that your policy coverage allows.  
• Exceeds limit judgment: If the court rules that you must pay more than the insurance policy covers, you will personally pay that amount.  
• Lien on assets: The court can rule that the injured party will be able to seize any of your assets or possessions to cover the debt.  
• Wages: The court could rule that a portion of your earnings are garnished until the debt is paid.  
• Settlement negotiations: Your attorney may attempt to negotiate a settlement without going to trial. 
• Umbrella policy coverage: If you have an umbrella policy, it may give additional coverage beyond your standard automobile insurance policy coverage. 

How Much Home Equity Is Protected Under Utah’s Homestead Exemption?  

Utah’s homestead exemption protects up to $53,700 in home equity for single filers and up to $107,400 for married couples filing jointly. This applies to your primary residence and is calculated by subtracting your mortgage balance and other liens from the total market value of the home.  

How Exemption Protects You  

• Equity Protection: The exemption protects your equity, not the full value of your home. For example, your home is worth $300,000, and you owe $200,000, and then your equity is $1000,000.  

• Bankruptcy Rules: If your equity falls below the exemption, then the trustee cannot sell your home to pay unsecured creditors.  

• Non-Primary Residence: If the property is real estate and not your primary residence (such as a vacant lot or rental), the exemption drops to a maximum of $6,400 per owner.  

Do You Need a Car Accident In Utah Attorney if You’re at Fault for a Crash? 

Your insurance provider may hire an attorney and defend your rights, but only if they believe doing so would be worthwhile. 

To protect yourself, contacting a well-qualified car accident attorney is the right step to take after a collision where you may be at fault. Skilled legal professionals understand the ins and outs of every Utah law regarding car crashes, negligence, fault, and liability.

The right lawyer will be able to draw on years of experience in assessing the situation. After working with clients in similar circumstances, they’ll be prepared to handle your legal proceedings. 

Consulting with an experienced car accident attorney is the best course of action, even when you’re to blame for a collision, as they will be eloquent in court. With a lawyer who specializes in collision-related cases, the outcome will be much better than what you might expect if you represent yourself. 

Contact Cockayne Law for a Free Consultation Today 

If you’ve been in a car crash and you believe you were at fault, Chris Cockayne of Cockayne Law is here to help. Whether you’re intimidated at the thought of talking to insurance adjusters, need expert help facing a lawsuit, or can’t bear the idea of losing your home due to an at-fault car accident in Utah, an attorney with proven experience is what you need. 

Contact Cockayne Law, and our highly skilled legal team will review your case and advise you on next steps. For a free, no-obligation consultation with one of the best car accident attorneys in West Jordan, Utah, contact our law office today.