Accidents can happen at any time, and the aftermath often leaves drivers uncertain about what steps to take next. If you’ve been wondering, “Do I have to pay if I hit an uninsured driver?” the answer can vary. There are many factors that can impact the outcome of an accident with an uninsured driver like your state’s fault laws, your own insurance policy coverage and the extent of the damage.
Knowing what happens if you hit an uninsured driver, or if an uninsured driver hits you, can make a significant difference in minimizing stress and protecting your rights. In this article, we’ll outline the essential steps to take if you find yourself in an accident with an uninsured driver and explain the possible outcomes based on a number of factors.
[Read: In a Car Accident? No Damage? Here Are 3 Things to Consider]
At-Fault vs. No-Fault States
The outcome of a car accident with uninsured drivers will depend on whether the state you’re in is an at-fault or no-fault state. In both at-fault and no-fault states, the party responsible for the car accident and the insurer of that party will pay for the property damages of the other vehicles involved (coverage for the at-fault driver’s damage depends on their policy). The distinction between at-fault and no-fault states is in who covers personal injury damages.
Most states have at-fault laws covering personal injuries. This means when an accident happens, the insurers of each driver investigate the accident by interviewing witnesses or police officers, reviewing pictures and videos, analyzing the damage and interpreting traffic laws to determine who was at fault. That driver, and their insurance, will then be responsible for the cost of all damages including personal injuries and medical bills resulting from those injuries.
In a no-fault state, each driver involved in an accident will use their own insurance coverage, also called Personal Injury Protection (PIP), to pay for their own injury damages and medical bills, which can be problematic when one of the drivers is uninsured.
Different Types of Insurance Coverage
The insurance coverage requirements vary by state and are most often based on whether your state is classified as at-fault or no-fault. However, all states require drivers to have a minimum level of auto insurance. If not, drivers may face a suspension of their driver’s license and vehicle registration, along with noncompliance fees. Here’s a breakdown of different types of car insurance coverage available to drivers.
— Liability. This insurance coverage will help you cover legal fees and another driver’s property damage and medical expenses if you’re at fault in a car accident.
— Collision. This coverage will help a policyholder pay for damage to their vehicle that is caused by another driver.
— Comprehensive. This insurance option will cover any non-collision-related damages to your personal property. This covers events like theft, rocks hitting your car, animal-related accidents and trees falling on your vehicle.
— Personal Injury Protection (PIP). Also referred to as no-fault insurance, PIP insurance will cover personal injury damages–like medical expenses and lost wages–for the policyholder who is involved in an accident. This will pay out regardless of whether the policyholder is considered responsible for the accident.
— Uninsured Motorist Coverage (UM). This insurance option will cover any injuries and car repairs if you’re in a collision caused by a driver without insurance. Underinsured Motorist Coverage is a variation of this insurance that will help cover costs if the responsible party’s insurance policy is too low to cover all your damages.
You may be less concerned about what happens if you hit an uninsured driver if you have full policy coverage that includes liability and collision insurance. But it’s also important to note that each policy is subject to payout limitations and will often have deductibles that the policyholder must satisfy before the insurer pays out.
[Read: How Does Car Insurance Work?]
What Happens if an Insured Driver Hits an Uninsured Driver?
Any time you’re in an accident with another driver, you should first check on the condition of everyone involved. Next, you should consider contacting the police. This can help build a record for insurers, establish a timeline and create a clear account of what happened. In the aftermath, a driver’s first thought may be, I don’t have insurance and someone hit me! Or they may be wondering about the kind of compensation they can claim.
The overall outcome and what happens if you hit an uninsured driver will follow the fault rules of the state where the accident occurred, as explained below.
Property Damages After Hitting an Uninsured Driver
In either fault-type of state, the driver who is responsible for the accident will generally be responsible for the property damage of the other vehicles involved, including the uninsured driver’s vehicle. You can expect the uninsured driver to file a property damage claim with your insurance. Whether the entire claim will be paid out will depend on your policy limits.
Personal Injury Damages After Hitting an Uninsured Driver
In a no-fault state, any of the uninsured driver’s remaining expenses, including medical bills, will typically be covered out of pocket by the uninsured driver who was required to hold PIP coverage.
In an at-fault state, the uninsured driver that you hit has the ability to file a claim against your insurer for any expenses related to their injuries. The payout may be limited depending on your policy.
Under certain circumstances, the uninsured driver may be able to sue the responsible driver for any remaining uncovered compensation. However, there’s no guarantee that the responsible driver will have assets to cover all of the damages. Many states restrict this type of lawsuit, only allowing it when damages meet a severity threshold. This is especially the case in no-fault states where drivers pay for their own personal injury damages.
What Happens if Someone Hits You and They Don’t Have Insurance?
If you, as an insured driver, are hit by an uninsured driver, your property damages will likely be covered by your own policy’s uninsured motorist coverage, regardless of the state you’re in. If you don’t have uninsured motorist coverage, your collision insurance will likely cover your property damage, but you may be subject to a deductible.
However, collision insurance will not cover any medical expenses or personal injury damages. You can get injury and medical compensation using PIP insurance or medical payment coverage, if you have it. If not, you can bring a lawsuit against the uninsured driver for medical compensation. This may not guarantee payment since the other party’s assets may be limited. Speaking with a car accident lawyer may help you better understand your options and potential outcomes.
Need Legal Help After a Collision With an Uninsured Driver?
What happens if you hit an uninsured driver depends on a number of factors like the responsible driver’s insurance, the types of damage and your state’s laws. Sort through it all with an experienced attorney who can help you limit your liability and get the compensation you deserve.
[What Does Hiring a Lawyer Cost?]
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What Happens if You Hit an Uninsured Driver? originally appeared on usnews.com
