Feeling hopeless

[u/CorrectSugar3005]

I’m 22 and honestly feel completely overwhelmed after a car accident situation that keeps getting worse financially and legally, and I’m looking for advice from anyone who’s been through something similar.

In 2024, I got into a bad accident on my way to school. My car hydroplaned on the highway during bad weather and I was hit by two other vehicles, which sent me across the highway. My car was totaled.

The police report said I was “driving too fast for conditions,” and from what I understand, hydroplaning accidents are usually automatically considered your fault even if it wasn’t intentional.

A couple months later, my insurance dropped me because I had briefly done Uber, which apparently violated my policy. I only did it for about a week and I was NOT driving for Uber during the accident, but they still used it against me.
While I was away at school, the other insurance company continued handling everything. I eventually found out my license had been suspended ,but I didn’t even know until almost a year later.

I already paid the reinstatement fee, but now I have to file an SR-22/SR-11 and somehow pay back around $10,000 to the other insurance company.I’m still in school, currently not working, and I don’t have family financial support. I start student teaching in the fall, so I NEED transportation eventually, but right now everything feels impossible.

I keep wondering:

Am I gonna be stuck in debt for life?

Is it even possible to recover from this?

Will I even realistically be able to afford insurance again?

Can I actually get my license fully back?

Should I wait for court or collections?

Is it smarter to immediately try setting up a payment plan?

Has anyone recovered financially from something like this in their early 20s?

What hurts the most is that it feels like I’m being treated like I was reckless or irresponsible when the accident genuinely was not intentional. My car was destroyed too, and now I feel buried in debt over one terrible moment. I just feel so stuck and depressed. This feels like a major setback back and each time I try to get myself together it’s something layered . I know people have bigger problems, but right now I honestly feel stuck and scared for my future. Any advice would really help

[u/GuvnaBruce]

There is some things missing here. You say you still owe 10K to the other insurance, so did your insurance not pay anything out? If they did pay limits, why did they not get a release for you? I would be following up regarding this if they did pay out on the claim. If they dropped you after the loss, that should not impact this one.

It is possible to recover, but you need to figure out what went down on that claim.

Insurance will be expensive, you will need to buy beaters but only if you absolutely need a car.

As far as collections, knowing why your insurance company left you with money to pay would be helpful.

[u/CorrectSugar3005 → u/GuvnaBruce]

I’m sorry if it’s confusing I hardly understand myself. My insurance company basically said because I drove for uber my policy should’ve never existed therefore they’re not liable ! My license ended up suspended because now it looks as though I never had insurance in the first place. I did take it to the Illinois department of insurance but they sided with the insurance company saying they didn’t go against policy

[u/GuvnaBruce → u/CorrectSugar3005]

Did you ever fill anything out that said you did not drive for uber? Usually in the denial they send to you, they have to spell out exactly the reasoning and quote applicable policy language.

[u/CorrectSugar3005 → u/GuvnaBruce]

Honestly I never filled anything out saying I wasn’t driving for Uber during the accident. I told them I had briefly done Uber before, but I wasn’t actively doing it at the time of the crash.

I do remember them saying it violated my policy though because apparently even doing rideshare at all required different coverage. I honestly didn’t fully understand that at the time.

[u/GuvnaBruce → u/CorrectSugar3005]

Not during the accident, I mean when you took out the policy. Policies do often exclude coverage for driving for any rideshare without the appropriate coverage. But that is not usually relevant on a claim where you were not driving for rideshare.

[u/CorrectSugar3005 → u/GuvnaBruce]

Yeah then honestly that part is on me. It was in the policy that I wasn’t supposed to do rideshare without notifying them first, I just genuinely didn’t understand how serious it was at the time or think it would come back on me this hard.

[u/Longjumping-Elk-6118 → u/CorrectSugar3005]

Who was your carrier and how long did you have them? I have never heard of this condition or seen it in any auto policy I’ve ever read

[u/CorrectSugar3005 → u/Longjumping-Elk-6118]

I don’t know if this is too much info for Reddit but this is the letter I received after filing against the insurance company. I was insured by American alliance .

[u/ragusauce30 → u/CorrectSugar3005]

It looks like your policy was rescinded due to material misrepresentation, which means they essentially revoked the policy effective to the date of inception. This would explain why the claim was denied. They didn’t deny inherently due to a ride share exclusion but more so the allegation that you misrepresented your application for insurance. Which unfortunately according to the terms of their policy, they have the right to do. Essentially leaving you uninsured for the loss date.

[u/Longjumping-Elk-6118 → u/CorrectSugar3005]

Try to work out a payment plan is my recommendation, you will have to go through state insurance more than likely which is crazy expensive so be warned, yes you can get your license back eventually. This is a moment in time but it will eventually pass.

[u/CorrectSugar3005 → u/Longjumping-Elk-6118]

Thank you so much I hope so ! I’ve been nervous to contact the other insurance company and can hopefully get a low payment plan especially since I’m in school

[u/Longjumping-Elk-6118 → u/CorrectSugar3005]

Tbh they have nothing they can really pursue against you lol, they will be happy you are willing to pay at all. You will be okay but being an adult is unfortunately hard

[u/Many-Neat641 → u/CorrectSugar3005]

Contact the other insurer yesterday. If you have a local program near you for legal aid - get a lawyer that knows something about insurance. They will negotiate for you on the payment plan and can help you draft a legal and fair payment schedule and can offer advice.

[u/Longjumping-Elk-6118 → u/CorrectSugar3005]

This does have a lot of your personal information but yes they are in the right, you just starting with them and then filing a claim within a month is what shot up the red flag in the first place. A lot of policies have a 30–60 day underwriting review period where the insurance carrier can rescind coverage if material information on the application was not disclosed or was inaccurate. Remaining registered with Uber is unfortunately considered a significant liability exposure, especially if the application stated the vehicle would not be used for business purposes.

[u/GuvnaBruce → u/CorrectSugar3005]

If that is what the policy says. Did you review it to make sure that is what it is saying?

[u/Many-Neat641 → u/GuvnaBruce]

I know what you are saying. But the company he is insured with (us or claims) would have gone back and cancelled the policy ab initio as it technically violated the contract conditions of “driving for compensation”… it sucks. But legally fully within the companies legal rights. It is a smart way for the company to get out of paying the claim, a bit slimy but legally smart. I would argue that it is semantic and morally dubious of the company. And not within the spirit of the law even if in the letter of the law. But doubt it would pass the legal smell test to be overturned.