What Happens If the Driver Doesn’t Have Insurance?

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Driver Doesn’t Have Insurance

It’s stressful enough to think about being in a car accident, but if you’re involved in an accident with a driver who’s at fault and they don’t have insurance, it’s even more anxiety-producing.

When you’re in an accident, typically, the insurance for the at-fault driver will pay for damages. If the other driver doesn’t have insurance, then it’s going to be difficult to sue the person for compensation for your damages, including any medical costs and repairs that you have to deal with because of the accident.

The following are things to know as far as what happens if you’re in an accident with someone not insured. 

Car Insurance Requirements

In most states in the country, at least some car insurance coverage is required by law. If you live somewhere where car insurance isn’t required, you still have to be able to pay for injuries or damages if you’re in an accident that’s your fault.

If you’re in a state that requires some level of car insurance and you get caught driving without it, even when there isn’t an accident, you can deal with serious consequences. Penalties for driving without required insurance can include suspension and revocation of your license, jail time, and fines.

If you’re the one without insurance, you’re in an accident, and you’re at fault, you’ll again be responsible for financial damages, plus you’ll be facing the penalties that come with driving without insurance. If you don’t have the money to cover the damages, a court might let the other driver be compensated through your wage garnishment. The money you owe to the other driver would then be taken directly out of your check.

There are 12 states in the country that are no-fault. That means a driver has to go through their own insurance company no matter who’s the at-fault party in an accident.

If you’re driving without insurance and then someone else is at-fault in an accident, your state may put limits on what you can recover from the driver and their insurance, and you’ll be dealing with the penalties for not having coverage.

Handling An Accident with an Uninsured Driver

To go back to the scenario of the other driver being uninsured and at fault, you need to follow most of the initial steps you would no matter the insurance status of the other driver.

You need to contact the police, and you need to get medical care after an accident, even if you think you’re fine.

The police should file a report that you can use for evidence. 

An uninsured driver is probably going to push you not to contact the police, but it’s important that you do, regardless.

Gather any evidence at the scene of the accident.

What Are Your Options?

Once you’ve done everything you can at the actual scene of the accident and you’ve sought medical care, you’ll start to explore your other options.

If you have uninsured/underinsured motorist coverage, you can apply it in this situation. You’re encouraged to carry this coverage.

With uninsured or underinsured motorist coverage, if another driver hurts you or damages your property, your insurer will cover at least some of the expenses you incur. Some states require that you have this coverage.

If the at-fault driver had some level of insurance, but it doesn’t cover all of your damages, your underinsured motorist coverage could kick in.

If you don’t have underinsured or uninsured motorist coverage, you do have the option to file a lawsuit against the party who’s at fault.

The problem here is that even if you win, there’s no guarantee you’ll be able to recover your damages because the person may not have enough assets to cover it.

Understanding Uninsured Motorist Coverage

If you don’t have uninsured /underinsured motorist coverage, it’s worth looking into it because there’s always a chance you could be in a situation like the one detailed above.

Uninsured motorist coverage is typically an add-on level of coverage, only required in a few states. Insurance companies are by law required to offer it in most states, though.

UIM coverage usually isn’t able to go beyond the amount of your standard liability coverage. If you have, as an example, $75,000 in total liability coverage for an accident, you can’t have more than $75,000 in uninsured motorist coverage.

UIM coverage will, most of the time, only apply to injuries you sustain in a car accident. You may need separate add-on coverage to cover vehicle repairs or replacements if you’re in an accident. This is called Uninsured Motorist Property Damage Coverage or something along those lines.

You probably have a limited window of time to submit an uninsured or underinsured motorist claim. Most insurance companies limit it to around 30 days after the accident.

If you’re in a no-fault state, as was touched on above, your insurance coverage will pay your medical bills and some of your other certain covered losses if you’re in an accident. In these scenarios, it won’t matter much if the other driver is at fault. In a no-fault state, you usually can’t sue the other driver involved unless you were seriously hurt or you had medical bills that were beyond a certain amount.

If your state doesn’t follow mandatory no-fault rules, you can purchase Medical Payments (MedPay) coverage or personal injury protection (PIP). These can be used for paying medical bills if you’re in an accident with someone who’s uninsured. With both PIP and MedPay, you typically don’t have to wait until your treatment ends before you can make a claim. Instead, you can send your bills as they come.

Finally, if the other driver you’re in an accident with isn’t insured, but they’re driving a vehicle that is, the insurance policy that goes with the vehicle will then extend to cover your accident unless the driver doesn’t have permission to drive the car or is specifically excluded from the owner’s insurance policy.

If you’re in an accident with an uninsured/underinsured driver, it’s a good idea to speak with a personal injury attorney as quickly as you can.