I didn't have insurance when I got into a car accident will I have to pay for other party's damages out of pocket

There are some pieces to the puzzle missing here. You have not described how the accident happened. This is important because depending on the facts, you may not be liable for $ 7000.00 worth of damage and the amount may be able to be reduced based upon your percentage of liability.

You also have not advised as to whether this bill was for medical services or for property damage, this is important for the same reasons as listed above.

Lastly, I'm curious as to whether someone in AZ should scrutinize the cancellation of your policy. In New York, for instance, insurance companies must comply with strict cancellation for late or no payment. If the cancellation is not proper, then the insurance actually may not have lapsed. I would recommend an auto insurance coverage attorney in your area review the cancel documents.

Good luck

If you were negligent (at fault) and caused injury to another party in an auto accident, then you are liable in Arizona for the injured person's damages. If you had car insurance, this would cover the damages up to the amount of insurance coverage. If you didn't have insurance, then your personal assets are at risk. However, a "bill" doesn't obligate you to pay anything. If you got a demand to pay, I would inform the person that you don't have insurance or any appreciable assets. If the other person has uninsured motorist coverage, that will cover the person's personal injuries and if they have property insurance, that should cover damage to their vehicle, subject to any deductible. However, be sure not to make any admissions of fault when you talk to the other person so as not to prejudice your position down the road.

However, unless they proceed to sue you and get a judgment entered against you, there is no legal obligation to pay anything as of yet.

As with any legal matter, consult with an attorney if at all possible.

It is unclear from your question exactly how you supposedly lost your automobile liability insurance coverage. Most states have strict regulations or a statute concerning how one will be notified about a loss of coverage, particularly for a late payment or a failure to pay a premium when due.

You should consult a personal injury attorney in the state where your auto liability insurance policy was issued. He or she should be able to advise you whether or not the insurance carrier complied with the regulation or statutory requirements for cancellation. If the regulation was not properly complied with by the insurance carrier, you may well have coverage even though they told you you do not.