Do insurance companies go after uninsured drivers? The short answer is yes. Your insurance provider may sue the at-fault motorist in an accident involving an uninsured driver in order to recoup the expenses of your claim.
Imagine being involved in a vehicle accident while driving along the road, taking care of your own affairs. The second driver turns out to be uninsured.
Automobile accidents may be difficult and distressing, particularly if one of the drivers is uninsured. Insurance is necessary to shield people from any monetary losses brought on by mishaps.
Not all drivers, nonetheless, adhere to the law’s mandate that they have current auto insurance. In such cases, insurance companies have established procedures to deal with uninsured drivers.
Now you’re left wondering: Do insurance companies go after uninsured drivers? In this article, we’ll explore the fascinating world of insurance and delve into the actions taken by insurance companies when faced with uninsured drivers.
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Understanding Uninsured Drivers
Uninsured drivers are individuals who drive without valid auto insurance coverage or fail to meet the minimum insurance requirements set by law.
This group includes people whose policies have lapsed due to non-payment, those who never purchased coverage, or drivers with insufficient insurance to meet legal standards.
Uninsured motorists pose a substantial risk to themselves and others because, without proper coverage, they may be unable to pay for damages or medical expenses in the event of an accident.
Many states require uninsured motorist coverage to protect insured drivers from financial loss caused by these individuals.
Do Insurance Companies go after Uninsured Drivers?
Do insurance companies go after uninsured drivers? The short answer is yes. The costs may be covered by your own collision, uninsured motorist, or PIP insurance if the uninsured driver is determined to be at fault.
Your insurance company could, however, take legal action against the uninsured motorist in court if they are unable to cover the damages.
You might find it beneficial to consult with an experienced Texas auto accident attorney to make sure you get paid for your medical expenses and other losses.
Certain personal injury lawyers focus on assisting victims of collisions brought on by uninsured motorists.
Together, they can negotiate with the at-fault driver’s insurance provider to secure the restitution you are entitled to.
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Are there Legal Consequences for Uninsured Drivers?
In most areas, it is illegal to drive without insurance. Region-specific punishments for uninsured drivers vary, but in general, they include of fines, license suspension, car seizure, and in extreme circumstances, criminal charges.
These legal repercussions are intended to discourage people from operating a vehicle without insurance and to guarantee that responsible drivers have sufficient protection.
If you have UM/UIM insurance, you can sue an uninsured driver. Your choices for compensation are restricted if you don’t.
You won’t be directly impacted if your insurance company chooses to subrogate the at-fault motorist; that is up to them.
If they are uninsured and you have significant losses, you may potentially file a personal injury claim. This is another way for you to get the compensation you deserve to pay for the economic and non-economic damages you suffered.
When Does an Insurance Company Go After an Uninsured Driver?
In case you might be wondering do insurance companies go after uninsured drivers? well If you’re in an accident caused by an uninsured driver, your insurance company may pursue reimbursement from them
This process, known as subrogation, occurs when your insurer pays for your damages through your uninsured motorist coverage or collision coverage and then seeks to recover those costs from the at-fault driver.
If successful, your insurer may refund your deductible. However, recovering funds from an uninsured driver can be challenging, especially if they lack the resources to pay.
Filing a police report and providing detailed accident information can help support your claim and assist your insurer in pursuing compensation.
What is the Uninsured Motorist Clause in Your State?
According to a 2019 IRC report, 1 in 8 drivers nationwide are uninsured, making uninsured motorist accidents a persistent issue in the US.
Some states have required uninsured motorist provisions in their insurance plans in order to address this issue.
An insurance policy’s uninsured motorist provision gives you the right to reimbursement in the event of an uninsured motorist collision.
While 20 states, including the District of Columbia, mandate coverage, not all states have this clause. Additionally, it could mandate that insurance provide uninsured motorist coverage or require you to opt out.
What is Underinsured Motorist Coverage (UIM)?
Underinsured motorist coverage may make up the gap if you are in an accident and the other driver’s insurance policy is insufficient to pay for your losses.
UM coverage is sometimes combined with underinsured motorist coverage, which is equally crucial for receiving reimbursement following an accident.
Certain states, such as Maryland, even mandate that your insurance policy include both UM and UIM coverage.
Even if your state’s minimal liability coverage might seem sufficient, the cost of repairs and medical expenses might total hundreds of thousands of dollars.
Damages from some life-threatening illnesses, such as TBIs and spinal cord injuries, can total up to $1 million.
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Is Uninsured Motorist Coverage (UM) Required?
Uninsured motorist coverage is the primary tool used by insurance companies to target uninsured drivers (UM). While some states mandate UM, others let you choose not to have this coverage.
After an accident involving an uninsured driver, this insurance coverage pays for your losses up to the policy limits.
Given that 13% of drivers nationwide lack insurance, it is extremely dangerous to drive without uninsured motorist coverage.
If you don’t have UM coverage, you can be required to pay a percentage of your losses, even if the accident was their responsibility.
You need an attorney on your side to reduce your expenses in every way possible if you end yourself in that predicament.
What Accidents Does UM and UIM Cover?
Depending on your state, UM/UIM coverage is divided into two categories:
- Body injury from an uninsured or underinsured motorist: This covers your injuries as well as those of your passengers.
- Property damages for uninsured or underinsured drivers: This covers damage to the vehicle brought on by an accident.
Both your injuries and car damages are covered by your uninsured motorist coverage. For instance, you will get $50,000 in reimbursement if your losses were $50,000 and your UM insurance is $100,000.
If the other motorist was uninsured, UM/UIM insurance would cover the following accidents:
- Rollover incidents
- The side swipes
- Head-on collisions
- Benders on the fenders
Depending on state legislation, UM/UIM coverage may even cover hit-and-run incidents. After a hit-and-run, your UM/UIM coverage will cover the difference if your injuries are much more than your minimums.
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Pursuing Compensation Through Subrogation
When an insurance company pursues the at-fault motorist for damages on behalf of the insured, this is known as subrogation.
By paying the at-fault driver’s bill, subrogation shields both you and your insurance provider from having to pay for unjustified damages.
Typically, the expense is handled by the at-fault driver’s insurance provider. However, depending on how your insurance handles subrogation, if they are not covered, they could use other methods to compensate you for your losses.
Before speaking with a lawyer, be cautious about signing a release of subrogation. After an accident, these waivers stop your insurance provider from taking action on your behalf.
In order to resolve the collision without contacting insurance companies, the at-fault motorist can ask you to sign one.
Be absolutely sure that you don’t want insurance companies involved before signing a waiver of subrogation. Talk to your auto attorney as well before you sign forms, especially a car accident claims release form.
FAQs
Do insurance companies go after uninsured drivers?
Yes. Subrogation, or the insurer’s legal power to pursue the third party for any loss its clients experienced, is what this process is known as. They can recoup the money they gave you to pay for your claims through subrogation.
Is it worth suing an uninsured driver?
Suing the uninsured driver might not be worth it unless they are financially capable of satisfying a judgment. After a crash with an uninsured or underinsured driver, contact a car accident lawyer about your legal options.
How likely is an insurance company to sue you?
While subrogation allows insurance providers to pursue third parties, an insurer usually cannot sue their policyholders. However, there are certain situations where an insurer may take legal action against its policyholder.
Can you sue your insurance company for an uninsured motorist?
Yes, you can sue your own insurance company if they refuse to cover an uninsured motorist accident, but this would typically be a last resort after other dispute resolution options have failed.
How do insurance companies go after uninsured drivers?
The insurance company will often do some kind of analysis to determine whether or not the individual is likely to have any money or property. Then they will initiate a lawsuit to establish liability. Often these suits are won by default as the uninsured driver never answers.
Am I covered against uninsured drivers?
If you cause an accident and you have a comprehensive Car Insurance policy, the cost of repairing both your car and the uninsured driver’s car is covered. If you only have third-party insurance, you’ll have to pay for any repairs to your own car yourself, but the uninsured driver’s car will still be covered.
Will my insurance go up if I get hit by an uninsured driver?
However, under California’s proposition 103, insurance companies are not allowed to raise rates or drop a person because they made an uninsured motorist claim.
Does an uninsured motorist claim go against your insurance?
California Law Forbids Insurers to Raise Rates. This makes California one of only two states in the country which has legislation on the books preventing insurance companies from arbitrarily raising rates after a consumer file an uninsured motorist claim following a no-fault accident.
Conclusion
In conclusion, do insurance companies go after uninsured drivers? Yes, driving without insurance puts people and society at large at serious danger and has legal repercussions.
To guarantee a safer driving environment, all drivers must abide by the law and comprehend the significance of insurance coverage.
If you have any doubts regarding how insurance companies handle uninsured drivers after an accident, give an attorney a call.
Depending on the regulations in your state, you may be eligible for compensation even if you bear some of the blame. Be sure to submit your claim before your state’s statute of limitations expires.
References
- Do Insurance Companies Go After Uninsured Drivers
- Do Insurance Companies Go After Uninsured Drivers?
