What Happens If You Have a Car Accident Without Insurance?

Although driving without insurance is illegal in almost all states, approximately 12.6% of US drivers do not have insurance, according to the latest report by the Insurance Research Council (IRC). Whether uninsured by choice, due to lack of coverage, or failure to pay premiums, there are consequences – both legal and financial – for driving without insurance. This is especially true if you are involved in a car accident and are an uninsured driver.

Penalties are determined by state laws, the driver’s record, and the circumstances of the accident, and may include:

If you are involved in an accident and do not have car insurance, your legal and financial liability, if any, will depend on whether you are at fault or not and the state in which you live.

If you live in a country that requires car insurance and you are at fault

Each country has its own laws that govern car insurance, but generally there are two systems that follow: no-fault and tort (or at-fault).

  • In a a world without problems, drivers must pay for damages to their vehicle — and sometimes medical expenses — regardless of who caused the accident. Motorists in these states must carry personal injury protection (PIP). If you do not have insurance, you will have to pay any such costs yourself.

However, there are some situations in which you may be blamed by the other driver, such as pain and suffering, which are often excluded from PIP. No-fault states often dictate the causes of pain and suffering by setting thresholds that must be met – whether it’s money or serious injury – before the driver can file a lawsuit.

  • In a difficult (or wrong) environment., the other driver can sue you for damages, time, whether for medical expenses, car repairs, or for pain and suffering. If you don’t have enough money to satisfy the judgment, the judge can use whatever you have or garnish future money to do so.

If you live in Pennsylvania, New Jersey, or Kentucky, you have the option of choosing a no-fault insurance policy or a tort insurance policy, although your right to sue for damages is less than in a tort practice.

If you live in a country that requires car insurance and you are not at fault

Your ability to recover damages from the driver who caused the accident when you have no insurance depends on where you live. There are 11 states in the US that have adopted insurance laws called “No Pay, No Play”, which prohibit or prevent uninsured drivers from claiming damages. Some states prohibit uninsured drivers from paying for damages, while others prohibit medical bills, lost income, and auto repairs. The motto “No Pay, No Play” is:

Whether you live in a “No Pay, No Play” state or not, you should check with your state’s Department of Motor Vehicles (DMV) to find out what, if any, you can recover if you are uninsured and not at fault in an accident. .

If you live in a country that does not require car insurance and you are at fault

There are only two states in the US that do not require motorists to purchase auto insurance: New Hampshire and Virginia. If you are a New Hampshire resident and choose not to have insurance, you will be liable for all damages, including bodily injury and property damage, for the accident you caused – and you may be required to provide sufficient evidence. money. Legal consequences of failing to pay damages can include losing your driver’s license. You may also need to purchase and show proof of insurance for three years after the date of the accident.

In Virginia, drivers have the option of paying a $500 Uninsured Motor Vehicle fee at vehicle registration and at each re-registration. Insurance premiums are not paid in exchange for fees. The driver is still responsible for paying for any bodily injury and property damage caused by the accident. If you falsely register if you have insurance, you can have your driver’s license and registration suspended, a $600 noncompliance fine, and a $145 reinstatement fee. You may also be required to provide proof of insurance through the SR-22 form for three years after your conviction.

If you live in a country that does not require car insurance and you are not at fault

New Hampshire and Virginia uninsured drivers can obtain damages from the at-fault driver’s insurance company by filing a third-party claim or personal injury lawsuit. Contact a personal injury attorney, your state department of insurance, or an insurance agent to find out what your options are.

Uninsured motorist (UM) coverage can pay for damages caused by an at-fault driver without insurance or, more often, by a hit-and-run driver. Coverage varies by company and where you live, but they usually cover you and your passengers if you’re injured in the accident. It may also include property damage protection for your car repair. Access for uninsured drivers is required in 20 states and more.

Uninsured motorist coverage (UIM) can pay for damages caused by an at-fault driver whose insurance limits do not cover the full amount. It is required by law in some states and by election in other countries. It also includes coverage for you and your passengers, depending on where you live, property damage to repair your car.

?

The cost of insurance may be the number one reason people don’t have insurance, according to the Insurance Information Institute (III), especially for those with a speeding ticket, accident, or DUI on their record or those with bad credit. Although drivers with poor driving records face higher annual insurance rates, they can still save money on car insurance.

Cheapest rates for drivers with accidents on their record

For drivers with an accident on their record, State Farm offers a premium of $1,516 per year.

Lowest rates for drivers with a DUI on their record

State Farm can be a great option for drivers with a DUI. According to our research, the average annual income for this group is $1,711.

Lowest rates for drivers with a speeding report on their record

With an annual premium of $1,409, State Farm is the cheapest insurance company in our rates for drivers with a speeding ticket.

Lowest rates for poor credit drivers

Geico offers up to $1,810 a year in fines for drivers with bad credit.

Insurance companies can use a person’s credit report to help determine their rates in all states except California, Hawaii, and Massachusetts, according to the Insurance Information Institute (III). Insurers look at a person’s credit management, including factors such as on-time repayment, collection and repayment (if any), and credit history, among others.

“The reason for the spread of insurance in writing and analysis is that many studies have found a strong relationship between the amount of insurance and loss,” notes III.

Remember that car insurance rates are determined by a number of factors that go beyond your driving record, including where you live, your age and gender, and the type of car you drive.

learn more

For more information on car insurance, check out these tips:

Some ratings from 360 Reviews

For more information on other types of insurance, check out these tips:

At US News & World Report, we pick the Best Hospitals, Best Colleges, and Best Cars to guide readers through life’s toughest decisions. Our 360 Reviews team applies the same unbiased approach to insurance companies and agencies. The group does not retain samples, gifts, or credits for the products or services we review. In addition, we maintain a separate marketing team that does not influence our processes or opinions.

Please note that the information provided on this website is for informational purposes only, and does not constitute legal advice.

US News 360 reviews reflect our unbiased opinions. When you use our links to make purchases, we may receive services but this does not affect our independence.