Do Insurance Companies Go After Uninsured Drivers? – All You Need To Know
If you are involved in a car accident with an uninsured driver, do insurance companies go after uninsured drivers? No one likes to think about getting into a car accident. However, if you’re involved in one, you’ll have to pay for the damages immediately.
If you have car insurance, your insurer will cover some or all of the costs. But what if the other driver doesn’t have Insurance? Or what if the other driver is underinsured?
However, an uninsured driver may not be at fault for your accident. You can do a few things to try and recoup some of the costs. But it isn’t easy to find uninsured drivers.
However, the easiest payment method for your fees is collision, uninsured motorist, or PIP insurance. We’ll also discuss what your insurance company may do if an uninsured driver hits you.
What Is Uninsured Motorist Coverage?
An uninsured motorist (UM) coverage would offer protection if the policyholder got into an accident with an uninsured driver. This policy is supplemental to an auto insurance policy and covers injuries to the policyholder and their passengers.
UM, coverage also covers damage to their property when other motorists do not have Insurance. An uninsured motorist would also be a hit-and-run driver. You will not receive compensation if you are in an accident with an uninsured driver and you don’t have any coverage.
What Is Underinsured Motorist Coverage?
A supplement to your auto insurance policy is underinsured motorist coverage. When you did not have enough insurance causes an accident with you, it protects you from being held responsible.
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The other injured party in an accident should receive compensation from the at-fault party’s Insurance. Insurance firms would cover an injured party for the balance if the at-fault party’s policy had a cap lower than the total costs.
Uninsured coverage and underinsured coverage are not the same concepts. You can combine both insurances, though. While most states mandate uninsured motorist coverage, a few mandate underinsured motorist coverage.
Do Insurance Companies Go After Underinsured Drivers?
Insurance providers may chase uninsured motorists. Nevertheless, the method and likelihood differ according to the nation and state where the accident happened. The effort required by insurance companies to pursue a driver may not always be worthwhile.
All American states have legislation requiring car insurance for all registered vehicles. You may recover damages from the at-fault driver if they do not have Insurance. However, doing so can be time-consuming and expensive.
3 Situations When Insurance Companies Go After Uninsured Drivers?
Subrogation is a legal privilege granted to most insurance companies. It does not necessarily mean they will sue an uninsured driver. Subrogation allows them to recover the money they paid you for your claims.
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Your insurance provider will generally pay for your damages if you have UIM coverage. Although, insurance companies won’t prosecute at-fault uninsured drivers unless the policyholder has the following coverage:
1. Collision Coverage
Collision insurance protects the insured from damage to their car caused by negligence. As an optional coverage for basic auto insurance, this type protects drivers in case of collision damage.
Collision insurance compensates the insured for actual collision damage. This coverage does not cover vandalism and theft-related damage. Further, their Insurance does not cover the damage even if the other driver was at fault.
It is always a great idea to have collision insurance. Because it guarantees that, regardless of guilt, you won’t be saddled with a hefty maintenance expense. However, a question arises: do insurance companies go after underinsured drivers?
The answer is “Yes.” But you must file a claim under the following situations and have evidence as proof, except hit & run.
- Collision with Another Car: In the event of a crash involving two or more vehicles, collision coverage will cover your damages.
- Collision with Static Object: Collision insurance will pay for any damages if you hit a street sign, guardrail, tree, fire hydrant, or other objects.
- Hit and Run Accidents: After you’ve paid your deductible, collision coverage will assist in covering the expense of repairing or replacing your car if it is damaged in a hit-and-run.
- Rollover: A collision with another car led to the rollover. If that motorist caused the collision, their Insurance would probably pay for your damages. However, you’ll need collision insurance to cover the costs if you are at fault.
Your insurance policy may require you to pay a deductible before it pays the remaining balance. However, you should note that collision insurance does not cover medical expenses.
2. Uninsured Motorist Coverage
Uninsured drivers are those who do not have liability auto insurance. So do insurance companies go after uninsured drivers? Yes, when the other driver is at fault, their Insurance should cover your car repairs and related medical expenses.
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You may be left with the tab if the other driver has no insurance and cannot pay. The coverage will protect you if you collide with an uninsured driver and suffer damage. UM, the coverage pays your expenses after an uninsured motorist causes an accident.
The following claims are covered by uninsured motorist coverage:
- Medical Bills: From receiving stitches to having major surgery, this Insurance covers all medical expenses.
- Lost Wages: If an automobile accident prevents you from working, you may be compensated for your lost wages.
- Funeral Expenses: Funeral costs are also a claimable charge if an uninsured driver is the cause of a fatality.
- Vehicle Repairs/Replacement: If your vehicle is a total loss, you can file a UM claim to have it fixed to its pre-accident state.
- Property Damage: You can file a claim for any harm to your home, yard, fence, car, or other property.
3. Underinsured Motorist Coverage
Some states offer underinsured motorist coverage. It protects you from negligent drivers who cause accidents without adequate insurance coverage to cover your losses.
You might occasionally fall victim to someone with insufficient Insurance to fully cover your expenses. Underinsured motorist coverage (UIM) protects you if the at-fault party’s Insurance is inadequate.
For instance, a negligent motorist carries the bare minimum of liability coverage. For example, you receive a $10,000 property damage claim, but your repairs cost $15,000. As a result, UIM will cover the remaining difference.
How does UM And UIM Coverage Work?
Many people are unfamiliar with UM and UIM coverage and how it works. Do you know how insurance companies chase uninsured drivers? And how do these policies protect you if you are in an accident by uninsured or underinsured drivers?
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If an uninsured driver hits you, your UM/UIM coverage will pay for your injuries and damages. If an underinsured driver hits you, your UM/UIM coverage will cover the difference between the at-fault driver’s insurance coverage and your policy limits.
You must have one or both of these insurances to be protected in some areas. Penalties include fines, and license suspension may result from not having the required insurance coverage.
Uninsured and underinsured motorist coverage includes two categories:
- Bodily Injury Liability: This Insurance covers medical expenses incurred as a result of an accident you had with a negligent motorist who was either uninsured or had fled the scene. This amount will pay for things like overnight stays in hospitals, doctor visits, lost income, and more.
- Property Damage Liability: This coverage extends to substantial damages like physical harm to your house, car, grass, fence, and other associated property.
What Should You Do If You’re In An Uninsured Driver?
It can be stressful and frightening to be in an accident. As soon as it’s secure to do so, get in touch with your insurance provider. The sooner you begin, the better the outcome will be if there is an uninsured or underinsured motorist.
If you choose to file an insurance claim, you will also need to have proof to support your claims. If you are in an accident, you should follow these instructions:
- Immediately seek medical care, even if you don’t think you are hurt. Some wounds, like whiplash, might not be immediately noticeable.
- Even if the at-fault driver has no insurance, you should still call the police and report the incident. It will provide evidence of the collision and can be used to back up your damage claim for personal injury.
- Share your name, address, phone number, auto insurance provider, and policy number with the at-fault motorist.
- In case of any injuries, take pictures of the accident scene, your vehicle, and your medical records.
- Inform your insurance provider about the collision.
- Speak with a personal injury attorney about your situation.
The majority of uninsured motorists are either underinsured or uninsured at all. So do insurance companies go after uninsured drivers? Yes, the companies chase down the uninsured to get you compensation for your incurred damage.
If you don’t have collision insurance, you could still be able to get compensation by bringing a lawsuit for injuries. You can do a few things to track down the culprit if you are the victim of a hit-and-run motorist.
- Find any eyewitnesses.
- Search for video surveillance.
- Make a police report.
- Call your insurance provider.
Frequently Asked Questions ( FAQs )
What Happens If I Don’t Have Uninsured Motorist Coverage?
You could file a lawsuit against the at-fault driver in court if you don’t have uninsured motorist protection. However, you would probably need to employ a lawyer, and the legal process could take some time.
Your medical expenses, lost earnings, pain and suffering, and funeral costs are all covered by uninsured motorist coverage. Letting your insurance company handle your medical expenditures is more straightforward than the risk of going to court.
What Happens To Uninsured Drivers Or Underinsured Drivers?
It’s a question that not many people think about, but it’s essential to know the answer. A few different things can happen to uninsured drivers or underinsured drivers. They may be fined, their license may be suspended, or they may be required to get Insurance before driving again.
If you’re caught driving without Insurance, the first thing that will happen is you will be fined. The fine will depend on your state, but it will be at least a few hundred dollars.
Your license may also be suspended if you’re caught driving without Insurance. The length of the suspension will also depend on the state.
What Happens If I Am Uninsured And At Fault In A Car Accident?
The worst-case scenario for an uninsured driver is this since you will probably have to deal with a lawsuit for damages and medical costs from the other parties. You are obliged to pay the other driver out of your wallet because you don’t have Insurance.
You’ll also be responsible for paying the other driver’s uninsured motorist claim when they submit it to their insurance company. You will also be required to reimburse their insurance provider for the subrogation.
What Happens If Someone Hits You And They Don’t Have Insurance?
When a driver without auto insurance causes an accident, you get hurt! You have a few choices, including using your Insurance or filing a personal injury case.
The nature of your injuries and whether you have UM or UIM coverage will determine your alternatives. If your state requires UM or UIM as part of your compulsory motorist coverage, that will frequently determine whether you carry it.
A minimum UM or UIM is needed in some states, such as New York, but not in others, like Florida, for all licensed drivers. Therefore, it is preferable to be ready if someone hits you and has no insurance.
Is It Worth Filing A Lawsuit Against An Uninsured Driver?
You can still sue the driver for personal injury even if you don’t have UM or UIM coverage. Before deciding to file a lawsuit, you can acquire their opinion from injury lawyers who offer free consultations for legal counsel.
However, filing a case of this nature might not be in your best interests. If the at-fault motorist doesn’t have auto insurance, they most likely won’t be able to cover your expenses. However, depending on the state, there may be a 30-day to 2-year filing deadline.
Do insurance companies go after uninsured drivers? The answer to this question is yes. Insurance companies go after uninsured drivers because they are not paying for the insurance coverage.
But in this situation, the driver will not get any compensation or expenses. Insurance companies go after uninsured drivers by sending them letters and phone calls. They also use social media to find out who is driving without insurance coverage.
Moreover, we’ve discussed things you can do when incurred in an accident. You must follow the law even if you’re at fault or uninsured. Be patient and call the police frequently.