Unsatisfied Judgment Fund

DEFINITION of 'Unsatisfied Judgment Fund'

An amount of money set aside by certain states to cover uncompensated expenses related to bodily injuries sustained in motor vehicle accidents where the responsible driver is unable to pay for the damages. The unsatisfied judgment fund is used to help the injured and not-at-fault driver pay for medical bills related to the accident. In order to be eligible to receive assistance from the fund, the injured party must be able to prove that he or she was not at fault, and that they are unable to collect money from the responsible party.

BREAKING DOWN 'Unsatisfied Judgment Fund'

The unsatisfied judgment fund is intended to protect drivers from financial losses resulting from motor vehicle accidents for which they are not responsible. The responsible party may be unable to pay because he or she is insolvent or uninsured. Often, these state funds are financed by a small addition to the state's automobile registration fee. The fund pays unsatisfied judgments up to certain, fixed limits.


There can me penalties to the the driver who is determined to be at fault in the accident and who is unable to pay for damages. For example, the driver might lose his or her driver's license. Once the responsible driver pays back the money into the unsatisfied judgment fund, he or she may be eligible for a driver's license again.

RELATED TERMS
  1. Automobile Liability Insurance

    Financial protection for a driver who, while operating a vehicle, ...
  2. Basic Reparations Benefits

    Automobile insurance coverage benefits that provide medical, ...
  3. Nonstandard Auto Insurance

    Auto insurance offered to drivers considered to carry the most ...
  4. Preferred Auto Coverage

    Auto insurance offered to drivers considered to fall into the ...
  5. Personal Injury Protection - PIP

    A feature of automobile insurance that covers the health care ...
  6. Driver

    Anything that could materially affect either a company's earnings ...
Related Articles
  1. Home & Auto

    5 Reasons The Other Driver's Insurer Won't Pay

    You drive below the speed limit when another driver plows into your car. You assume their insurance company should pay, but that's not the case every time.
  2. Personal Finance

    How to Become an Uber Driver: A Step by Step Guide

    Becoming a personal driver with Uber is a popular way to make money at home. Here's everything you need to know before you become an Uber driver.
  3. Term

    What's Compulsory Insurance?

    Compulsory insurance is insurance a person or business is legally required to buy.
  4. Insurance

    Understanding Insurance Claims

    An insurance claim is a formal request made to an insurance company that asks for a payment based on the terms of the policy.
  5. Insurance

    What Happens If You Lie on a Car Insurance Application

    The majority lies to save on premiums – but consequences can be severe for not owning up to things like tickets, accidents and how much you drive your car.
  6. Stock Analysis

    Are You Ready for Uber's IPO? 2 Things to Consider

    Learn why ongoing litigation from drivers along with state and local governments could put a damper on what is likely an impending Uber IPO.
  7. Home & Auto

    Why Are Fewer People Getting a Driver’s License?

    A recent University of Michigan study shows that people under 45 are getting fewer driver's licenses. Could the privately owned automobile be endangered?
  8. Insurance

    Buying Auto Insurance For Your Teen Driver

    When parents of a teen first watch their baby take the wheel, they may be too busy seeing the years flash to focus on the rigth insurance for them.
  9. Insurance

    How Much Car Insurance Do I Need?

    Find out to determine how much car insurance you actually need with this overview of the different types of coverage available in your policy.
  10. Investing Basics

    Diversify Your Strategies, Not Your Assets

    Asset classes are intentionally self-limiting, and their use is incapable of creating true portfolio diversification.
RELATED FAQS
  1. Can your insurance company drop you after an accident?

    Learn how auto accidents can lead to insurance premium increases or policy cancellations, and why high-risk drivers are more ... Read Answer >>
  2. How much money can Uber drivers make?

    Driving for Uber can earn an individual up to $90,000 per year according to the company, but the yearly income of an Uber ... Read Answer >>
  3. Does your car insurance company report accidents to the DMV?

    Find out when and how auto accidents get reported to the Department of Motor Vehicles, including how your state of residence ... Read Answer >>
  4. Suppose my garage collapsed onto my car. Are damages covered by my home insurance ...

    Generally, damage to an automobile will be covered by comprehensive car insurance, which is in addition to collision coverage ... Read Answer >>
  5. Do mutual fund trading costs hurt your bottom line?

    Find out how a mutual fund's expense ratio could be eating into your bottom line, what costs are included and an example ... Read Answer >>
  6. What are the most popular mutual funds that invest in the automotive sector?

    Discover some of the mutual funds that investors consider utilizing to profit from gains in the automotive industry portion ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center