Thousands of drivers carry no car insurance on their vehicles, in part because of the cost of coverage. What happens if one of these uninsured drivers causes an accident, and you end up suffering an injury and/or incurring vehicle damage?
- If you get into a car accident with an uninsured driver, the first and best place to turn for compensation for your injuries is the uninsured motorist (UM) coverage of your own car insurance policy.
- If you don't have UM coverage (it's not required in most states), you still have options, especially if you live in a no-fault car insurance state.
- A UM claim with your own car insurance company covers some (but usually not all) losses resulting from an accident in which the at-fault driver is uninsured, up to your coverage limits.
What Is Uninsured Motorist Coverage?
Most uninsured motorist coverage will pay up to your policy’s UM limits for injuries caused to:
- you while driving or riding in the vehicle named in your policy, while driving or riding in any vehicle you do not own, or as a bicyclist or pedestrian
- a relative who lives with you and is injured while driving or riding in the vehicle named in your policy, and
- anyone else riding in or driving your insured vehicle with your permission.
Complications can arise (including when the injured person has their own car insurance coverage), but those are the basic rules.
The Limits of UM Coverage
UM coverage places limits on when you may collect compensation, and on how much you may receive:
- Some UM coverage includes accidents with unidentified hit-and-run drivers. Such coverage doesn’t apply unless you or your vehicle was actually hit by the other car; being forced off the road by a driver who then flees isn't usually sufficient. If your UM coverage includes hit-and-runs, your policy probably requires you to notify the police of the incident within 24 hours.
- Other UM coverage includes hit-and-runs only when you are able to identify the driver, or the vehicle.
- If you're injured while on the job, your UM payments will be reduced by any workers’ compensation or other disability payments you receive.
- If you receive payments for medical bills from your own insurance company under personal injury protection or medical payments coverage, the amount you're entitled to recover under UM coverage will be reduced by the amount of those payments.
- If you or a relative is injured by an uninsured motorist while you're in another person’s car, the UM coverage of that other car’s owner is the primary coverage, and your own UM coverage is secondary. You can collect from your own UM coverage only the amount of your losses ("damages" in the language of the law) that's not covered by that car owner’s UM policy.
Does Uninsured Motorist Coverage Apply to Vehicle Damage?
Most standard uninsured motorist coverage applies only to injuries and related losses after a car accident. If you want to make sure vehicle damage is covered if you're hit by an uninsured driver, you probably need to ask your insurance company about purchasing separate "uninsured motorist property damage" coverage. With this kind of coverage, you'll be able to get your car fixed (or replaced if the damage is bad enough) when you're hit by an uninsured driver.
If you have collision coverage as part of your car insurance policy, that will also kick in to pay for vehicle repair/replacement after a car accident, regardless of who was at fault. So that's another option when you're hit by an uninsured driver.
If your uninsured motorist coverage doesn't cover property damage, and you don't have collision coverage, you'll likely have to pay out of your own pocket for damage to your vehicle.
The Uninsured Motorist Claim Process
If you file a car insurance claim under your UM coverage, an insurance adjuster from your insurance company will handle your claim and work toward a satisfactory car accident settlement, but you'll likely find the process to be significantly less adversarial than it might be if you were dealing with someone else's insurer.
You might negotiate with the adjuster about the extent of the other driver’s liability for the accident, but the majority of the process will probably be devoted to establishing the nature and extent of your car accident injuries and related losses, balanced against the dollar limits of your UM coverage. Most categories of car accident-related losses are in play with a UM claim, including:
- compensation for medical treatment necessary to treat your car accident injuries
- time missed at work and other income-related losses resulting from the accident, and
- your physical and mental pain and suffering resulting from the accident, your injuries, and the course of your medical treatment.
Remember that standard UM coverage usually doesn't apply to vehicle damage resulting from an accident with an uninsured driver.
Learn more about how underinsured motorist insurance works after a car accident.
Suing the Uninsured Driver
If the other driver has no car insurance, and you don't have UM coverage, then any money is going to have to come directly from the at-fault driver's pockets, and you’ll need to file a lawsuit to get it. But, even if you win a judgment in court, collecting on that judgment is going to be a different story. Practically speaking, if someone is driving around without insurance, it could be because they can’t afford to pay for coverage, and that means they probably don't have much in the way of money and assets.
If the defendant doesn't pay the judgment, you can go back to court to apply for a court order requiring payment, but there's obviously no guarantee you'll see the money you're owed.
The Payment Plan Option. If the court finds that the defendant does have some money, the court might set up a payment plan, and have the defendant pay you a certain amount per week. This will probably not be a very satisfying result, especially since any time the defendant stops paying, you and your lawyer will have to go back to court and start the whole enforcement procedure over again.
Are You In a No-Fault Car Insurance State?
If you're in one of the dozen or so states that follow a no-fault car insurance system, you typically must turn first to your own insurance policy for claims related medical expenses and lost income resulting from a car accident, regardless of who caused the crash.
In a no-fault state, you can't pursue a claim against an at-fault driver unless your case meets a certain threshold in terms of the seriousness of your injuries or the amount of your medical bills. So, especially if your car accident was minor, your right to recover your economic damages (also called "special damages") might not be affected if you're in a crash with an uninsured driver in a no-fault state.
Getting More Information and Legal Help
For more tips on figuring out insurance coverage after a car accident, and in-depth information on what to expect at every step in your case, get How to Win Your Personal Injury Claim by Joseph L. Matthews (Nolo).
If you've been in a car accident with an uninsured driver, your options might be limited, but it may also make sense to discuss your situation with an experienced attorney. Learn more about when you might need a car accident lawyer and how to find and hire the right injury lawyer.