Even if you drive safely and believe you don’t need vehicle insurance, you shouldn’t put off buying it. Almost all states mandate the purchase of auto liability insurance. Depending on where you reside, driving without it could result in penalties, license revocation, and even jail time.
However, a 2017 study by the Insurance Research Council found that in 2015, around one in eight drivers lacked insurance. Driving without insurance might be risky, but it can also be difficult if you have an accident. Let’s examine what happens if you cause an accident without auto insurance or if you are involved in an accident with an uninsured motorist.
In this article, the answers to the following questions will be discussed:
- Is an uninsured driver automatically at fault after a car accident?
- What happens if I cause a car accident and have no car insurance?
- What happens if I get into an accident with an uninsured driver?
Let’s dive in!
Read more: Understanding full coverage auto insurance
Contents
Is an uninsured driver automatically at fault after a car accident?
The quick response is no. But even if you’re not at fault, driving without vehicle insurance can result in fines, license suspension, or even jail time (depending on your state’s laws). Furthermore, without auto insurance, you might be responsible for covering any resulting automobile damage or medical expenses out of pocket.
Depending on the state you live in, there are different costs and penalties for driving without insurance. In most places, you would submit a claim to the insurance provider of the driver who was at fault. You would therefore submit a claim with their insurer if another driver hit you. However, some states have no-fault rules, which allow each driver to file a claim with their own insurance provider in the case of an accident and get reimbursement for injury claims without having to identify the at-fault party. You also wouldn’t be allowed to submit an insurance claim to the other driver’s insurance carrier, even if the collision wasn’t your fault. Those states also have restrictions on when you can bring a lawsuit against another driver.
Additionally, if you reside in a “no pay, no play” state, and lack insurance, you normally cannot bring a claim for any losses that cannot be measured in money terms, such as pain and suffering or mental anguish. No-pay, no-play legislation has been passed in about a dozen states, including California, Indiana, Louisiana, New Jersey, and North Dakota.
State rules governing no-pay, and no-play differ. For instance, in Louisiana, the first $15,000 in bodily harm or the first $25,000 in property damage are not subject to a lawsuit. If the other motorist was under the influence at the time of the collision, you might be entitled to file a claim for nonquantifiable damages in other states like California and Missouri.
You can be hit with a sizable fee if you get into a car accident without insurance, depending on the regulations in your state.
Read more: How much car insurance do I need?
What happens if I cause a car accident and have no car insurance?
In most states, up to your policy limit, if you cause an accident, your liability insurance helps pay for the other driver’s car damage costs and medical expenditures. However, if you cause an accident and don’t have auto insurance, you run the danger of being held liable for the cost of the damages by the other driver.
In a no-fault state, their expenditures would normally be covered by the other driver’s insurance. Even though no-fault laws limit when drivers can bring lawsuits, there is still some risk involved. You can still face a lawsuit from the other driver, depending on state regulations. Also, keep in mind that you would be responsible for paying your own expenditures.
Read more: How to compare car insurance rates?
What happens if I get into an accident with an uninsured driver?
You might be able to sue the other motorist to pay for any associated medical costs or property damage if you have insurance and are in an accident with someone who does not. If you reside in a no-fault state, your auto insurance may, up to the extent of your coverage limit, pay the costs related to the accident. You might not have a case to bring against the other motorist in this situation.
If someone without car insurance causes an accident, uninsured motorist coverage might assist cover your costs. More than 20 states and the District of Columbia require uninsured or underinsured driver coverage. In essence, it replaces the liability insurance that the other motorist either neglected to purchase or did not purchase in sufficient amounts.
Read more: How to get the best deal on car insurance?
In conclusion
Despite the fact that auto insurance is often a requirement, some drivers nevertheless take a chance by driving without it. The repercussions of being involved in an automobile accident without insurance may be severe depending on where you reside. Additionally, you could have to pay extra if you do decide to purchase auto insurance. If you have a gap in your insurance coverage or an uninsured accident on your driving record, your rate may increase.
If you own a car but don’t currently have auto insurance, you should do so right now. To help safeguard your finances in the event that you were involved in an accident with an uninsured driver, you might also want to think about acquiring uninsured motorist coverage. To assist you to locate the greatest coverage and rates for your budget, comparison shop and obtain quotes from several insurance providers.
Read more: Understanding auto liability insurance and why you need it
That is all for this article, where the following questions are answered:
- Is an uninsured driver automatically at fault after a car accident?
- What happens if I cause a car accident and have no car insurance?
- What happens if I get into an accident with an uninsured driver?
I hope you learn a lot from the reading, if so, kindly share with others. Thanks for reading, see you around!
