State laws differ however in general most states will suspend your driver's license indefinitely if you caused an accident and received a judgment against you personally for the damages you caused.

It would appear that you were driving without insurance or else your insurer would have covered the damages that you were sued for. If this is the case then usually you will have to face the penalties the state places on you for driving without insurance and repay either the person you damaged or their insurance company.

In this case it would appear that the other party's insurance company paid for the damages you caused and is now subrogating with you for the monies they paid out. If you are unable to pay the amount they are requesting in full then you should see if there is a way in which to negotiate a payment plan with the insurance company.

Most insurance companies will subrogate with an at-fault party and thus want repayment for the monies they spent on a claim that was not their insured's fault.

If you cannot pay or agree on a payment plan with the other driver or their insurer, whoever is requesting the money for the damages, then most states will suspend your driver's license as a way to try and get you to take responsibility and pay for your actions. Some states may reinstate your license after a certain amount of time has passed while other states will suspend your license indefinitely meaning that until you pay or make approved arraignments to pay they will not reinstate your driving privileges

For examples of state laws regarding this situation see below.

The Florida Department Highway Safety and Motor Vehicle (HSMV) and the FL Bureau of Financial Responsibility both get involved when an uninsured party is at fault in an accident causing injury, property damage or both. If the person did not have this coverage, they must purchase it and have it certified on a SR-22 form for 3 years. The at-fault party must also obtain releases from the victims that they were compensated fully for their bodily injuries and/or property damages.

The above requirements must be met before the suspension date in the inquiry notice to prevent suspension of the owner's tags and registration and the operator's driver license. If you had no car insurance at all and receive a judgment against you, the Bureau of Financial Responsibility will suspend your license, tags and registration for up to 20 years or until the entire judgment is satisfied.

If you are involved in a crash without insurance, or other FR coverage, the state of Ohio can apply additional penalties. You may have a security suspension of your license for 2 years or more and a judgment suspension for an indefinite period, until damages are paid.

In RI the license, registration, and nonresident's operating privilege shall remain so suspended and shall not be renewed, nor shall the license or registration be thereafter issued in the name of the person, including any person not previously licensed, unless and until the judgment is stayed, satisfied in full, or in approved installments, and until the person gives proof of financial responsibility.

While state laws differ it is highly likely that if you do not at least set up a payment plan with the other party that indeed your license will be suspended since the other person needs to be compensated for their damages they sustained by you being at-fault in the accident while driving without insurance. This is one main reason it is important to not have lapses in insurance coverage and to make sure when you do have insurance coverages that your limits are high enough to cover you and your assets in case you are sued in court.

To find out about your state laws you can contact a lawyer that works in this area of law. You may also try contacting your state's insurance regulator and/or Department of Motor vehicles. Either state agency should be able to advise you on the penalties the state can place on you for driving without insurance and if you are unable to pay on the damages you caused to another party.