What happens when there’s an accident without insurance? Getting into a car accident is usually a terrible and stressful experience, and the situation can escalate if you don’t have car insurance coverage. Things become really tangled if an accident or collision occurs without insurance to cover the costs.
Regardless of whether it’s your fault, the fault of the other party, or other circumstances surrounding the accident, the aftermath of an accident without insurance incurs serious consequences that extend beyond the damage it has to your vehicle.
Accidents without insurance could lead to financial liabilities and legal ramifications like a fine or jail term, which do not usually end well. So, it is essential for drivers and car owners to pay attention to the importance of getting car insurance coverage.
In this article, we will be providing insights on what to do if you get into an accident without insurance. Ensure to read to the end of this article so you don’t miss out on valuable information.
What Happens If I Get into a Car Accident Without Insurance?
Believe it or not, this situation is usually not a very pleasant one. And the outcome of getting into a car accident varies depending on some factors, such as your geographical location and whose fault it was.
If you’re at fault
There are repercussions that come with it. In states except Virginia and New Hampshire, it is expected that every car owner has some liability insurance coverage. Those who get into accidents without insurance will be confined to some legally imposed penalties, such as:
- Payment of fines.
- License suspension.
- Jail time.
- Having your vehicle impounded.
- You will also be mandated to file an SR-22 form (certification of insurance coverage) that permits you to legally drive in the future.
These aforementioned penalties are totally different from any other civil claims that the affected driver can file against you. You may therefore be asked to provide additional compensation for the losses and damages incurred from the car accident.
If you’re not at fault
There is every tendency to receive compensation from the driver who caused the accident. In cases of severe accidents, the other driver will cover the cost of medical bills and the emotional distress that stems from the accident experience.
File a third-party claim with the driver’s insurer that enables you to receive compensation for all the damages incurred from the accident. If the other driver is submissive enough to provide compensation, the issue can be resolved outside a court’s jurisdiction. If the reverse is the case, you can file a lawsuit to recover compensation for losses and other damages done to your car.
On the other side, if you reside in a state where there are laws of “no pay, no play,” uninsured drivers are prevented from filing a lawsuit for car damages incurred from accidents. For instance, in Louisiana, if an uninsured driver gets into a car accident and is not to blame, they can’t receive the first $25,000 in property damage and the first $15,000 in personal injuries.
Examples of states with “no pay, no play” laws:
- Indiana
- North Dakota.
- New Jersey.
Steps to Take When You Get into an Accident With an Uninsured Driver
Car accidents, regardless of how minor they are, usually come with loads of stress and financial burden. It only gets worse if one of the drivers does not have insurance coverage. If you’re wondering what steps to take if you get into an accident with an uninsured driver and you’re not at fault for the circumstances surrounding the accident, worry less. We have helped to curate a list of what to do if a situation like this occurs.
- Check for Injuries: The first thing to be on the lookout for is injuries incurred from accidents. If it’s a severe accident, we advise that you seek immediate medical attention in order to preserve your health.
- Document the incident: It is essential to have substantial proof that shows the intensity of the accident. Drivers who get into an accident with an insured driver should take pictures of the scene, including damages done to the vehicle. This will serve as validation of your testimony if asked to narrate what happened.
- Report the accident: After documenting the events surrounding the accident, the next step is to file a report. Contact your insurance company and inform them about what happened. Get the other drivers contact information so you can communicate about the compensation process.
- Consult an Attorney: You can as well consider reaching out to an attorney who specializes in cases that involve uninsured motorists. With their consultation, you can explore alternatives for compensation and the legal process. If you have car accident insurance coverage, this option may be optional for you. However, it is useful for those who have an insurance policy that does not cover the cost incurred from accidents.
FAQs
What happens if I’m caught driving without insurance?
In some states that mandate having an insurance policy, those caught driving without insurance will be penalized. The consequences also vary depending on the state in which the driver resides. If found driving without insurance, you could be asked to pay a specific amount of fine or serve a jail term. In most cases, your car will be impounded.
What is going to be my fate if I get into a car accident with no insurance?
The consequences that come with getting into a car accident are usually grievous. Individuals who get into a car accident without insurance and are at fault will be held responsible for the damages and losses incurred from the accident. You could face legal penalties like a fine, license suspension, or serving a jail term.
If it’s a no-fault case, you will still be held responsible. And you could face legal consequences for driving with no insurance. This could ultimately depriving you of the right to get compensation from the other driver.
