Car accidents are always traumatic, even minor ones. However, if you are involved in an accident and don’t have insurance, it can be a disaster.
All states in the U.S. have financial responsibility laws that, in most states, requires a minimum level of liability insurance that helps pay for damages and injuries in at-fault accidents and can protect car owners from legal suits.
Note that we emphasize the word “helps.”
Most state car insurance laws are antiquated and the minimum coverage requirements are significantly lower than needed in these days of huge accident law suits. If the insurance is insufficient in a particular accident case, the car owner and driver are subject to being sued for the remaining amount, which can easily be hundreds of thousands of dollars, or even millions.
Having inadequate insurance is not much better than having no insurance, except that it keeps you legal and protects you in relatively minor accidents.
It is important to realize that having auto insurance is not simply a legal requirement but, more importantly, it provides both legal and financial protection — at a relatively low cost. Although some people, primarily young male drivers, would argue about the low cost but it’s certainly cheaper than having to pay damages and hospital bills out of pocket — or being sued for thousands of dollars.
Insurance is one of those things that you don’t think you’ll ever need but when you do need it, you really need it.
Driving a car without at least the minimum insurance required by law is a misdemeanor that is subject to fines and possibly jail time. If an uninsured driver causes an accident that results in certain damages, injuries, or death, they can be charged with a more serious criminal felony charges, in addition to being exposed to expensive civil suits. If this happens, it’s highly advisable to seek the services of a competent attorney who specializes in car accident cases.
That’s all useful information but what happens in my particular accident case?
Let’s take a look at some specific situations that can occur when there’s an accident and no insurance.
1. Someone hit my car causing damages, but I have no insurance
If someone caused an accident that caused you damage and/or injuries, their liability insurance will pay you, regardless of the fact that you don’t have insurance. However, you could be given a traffic ticket by police for having no insurance.
If the at-fault driver also has no insurance, you could sue them (get an accident lawyer, don’t try it yourself), or simply pay for the damages yourself. Without having your own insurance company to help you in such a situation, you are on your own and must hire an expensive attorney to help you.
2. I was driving a friend’s car and someone hit me and caused damages
If you are driving someone else’s car with their permission and they don’t have insurance on the car, then it is very similar to Situation #1 above, except it’s the owner that will get the insurance settlement or will have to sue with an attorney. However, if you were injured in the accident, you could seek a separate settlement — or can sue the at-fault party.
3. I was driving and ran off the road into a tree, totaled my car and was taken to a hospital. I had no insurance at the time
In this case, if you had had full-coverage insurance (liability plus collision and comprehensive), your insurance company would pay for the replacement of your car, and for your medical expenses. However, since you had no insurance of any kind, you must pay all of the costs yourself. If you have separate medical insurance, it would help with the hospital bills. If the police were involved, you likely received a ticket for having no insurance.
4. I was involved in an accident where neither driver was determined to be at fault. I only had liability insurance, not full coverage
In a case such as this, each party’s insurance company would pay for the damages for their own customer. However, since you did not have collision and comprehensive coverage, you must pay the damages out of your own pocket. Liability coverage is not applicable in this situation for either party.
5. I caused a serious accident but I don’t have insurance. They are now suing me asking for thousands of dollars
This is the worst possible scenario, especially if someone was hurt or killed. Not only could you face possible criminal charges but you are facing a serious civil suit as well. Since you have no insurance or insurance company to protect and represent you, you should hire a good accident attorney who has a track record of success in cases like yours.
6. I was stopped and given a ticket and court date for driving without insurance, but have now purchased insurance. Does this cancel the ticket?
No. It doesn’t work that way. Your ticket was for the fact that on a particular day you were in violation of the law by driving without insurance. Buying insurance later doesn’t change that fact or negate that violation.
Why an accident attorney or personal injury attorney is important
If someone causes an accident in which your vehicle is destroyed and you sustain injuries, your own insurance company (if you have insurance) can only provide limited assistance.
Furthermore, the at-fault party’s insurance company’s objective is to settle with you for as little money as possible. Or possibly, their liability insurance coverage was insufficient to cover all your damages and medical bills. You’ll need a lawyer to protect your interests, help you understand your rights, and work with the other party to get a fair and sufficient settlement. This is not something you can do on your own.
If you cause a serious automobile accident, and you have no insurance (or even if you do), you can bet the damaged party will hire an accident attorney or personal injury lawyer to help them in their fight against you. Your only defense is to hire your own attorney to represent you and minimize the impact. With the right attorney and the right situation, he might even get your case dismissed.