Nobody wants to be in a car accident, but you feel safe as a driver knowing you’re protected by your insurance against any major personal losses and/or damage to your vehicle. That’s the reason why you took out insurance in the first place, right? But not every driver is an upstanding and conscientious road user with full insurance. In fact, the reality behind that kind of thinking will shock you.
Uninsured Driver Statistics
So, what happens if you are involved in an accident with an uninsured or underinsured driver? Or, worse again if it was a hit and run accident, and you have no way of claiming against the other motorist? You probably think it’s unlikely you’ll ever come across an uninsured driver, but here’s a sobering statistic for you: there are approximately 28 million uninsured or underinsured drivers in the United States. Or 10% of the total number of people who are currently driving on roads and highways.
‘No Fault’ States
What happens immediately after the accident will depend on the insurance laws in your state – they vary dramatically from one state to the next. It will also depend on what type of insurance coverage you have, and whether or not you live in a “no fault” state. ‘No Fault’ states are ones where you can claim against your own insurance company, specifically: DC, Florida, Hawaii, Pennsylvania, Utah, Michigan, Minnesota, New Jersey, Kansas, Kentucky, Massachusetts, North Dakota, and New York.
Claiming Against Your Insurance
If you live in one of the above states you can claim against your insurance company, but only if you have Uninsured Motorist Cover (UIM) in cases where the other person admits to having no insurance. The amount of coverage provided by this type of insurance will not exceed the maximum amount of compensation provided by your primary insurance policy i.e. if your main policy covers you for damages of up to $50,000, then your UIM would provide the same level of total compensation.
When you’re trying to claim against an underinsured driver, then you will need to rely on the underinsured motorist cover provided by your insurance company, if they even offer this type of cover. This type of insurance is usually optional on most insurance policies and is not a legal requirement in most states.
In states where driver negligence is not affected by the “no fault” rule then you may be able to successfully claim against the driver who caused your injury and/or damage to your car. The issue is that an uninsured driver is unlikely to have the financial resources to actually pay out – usually resulting in you wasting your time. You are unlikely to be able to recoup your personal or medical costs from the person who caused the accident.
If your attorney can prove that the person who caused your accident has additional assets, or financial resources, beside their insurance cover, you may be successful in having the courts arrange a payment plan with the defendant. This will result in them paying you a fixed sum of money each week or month until your damages are paid in full.
Due to the complexity of such cases it’s wise to consult with an attorney immediately after being involved in an accident with an uninsured or underinsured driver. Although you will need to contact your insurance company to report the accident, it’s prudent to seek professional legal advice at the same time.