While car insurance is mandatory in most states, many drivers still don’t. Uninsured motorist coverage aims to bridge this gap.
Some states have passed legislation in response to concerns that people who obey compulsory laws subsidize scofflaws. Other laws curtail lawsuits for uninsured drivers in both personal injury and property damage cases.
What is Uninsured Motorist Law?
While most states have compulsory auto liability insurance laws, many drivers choose not to obtain or do not maintain this coverage. This is due to various factors, including affordability, poor driving records, and the desire to avoid premium surcharges on their car insurance.
Insurance companies have tried many solutions to the uninsured motorist problem, including computerized systems designed to verify auto insurance quickly and efficiently. However, these systems are expensive and have been less effective than hoped.
Most states require motorists to include uninsured and underinsured motorist coverage in their car insurance policies to deal with this issue. These coverages typically have lower minimum limits than liability coverage. Still, they may pay for medical bills and other economic losses when the at-fault driver’s insurance is insufficient to compensate them. In addition, most states allow policyholders to “stack” their UM/UIM coverage to increase the maximum limits on multiple vehicles under one policy.
How Does Uninsured Motorist Law Affect Me?
Car accidents can be costly – between damage to your vehicle, medical bills, and lost time from work; it can quickly add up. What if you get into an accident with an uninsured or underinsured driver?
Almost every state in the United States requires drivers to carry car insurance. However, some people break uninsured driver laws and drive without coverage. The percentage of drivers operating vehicles illegally varies by state, but it is estimated to be around 13 percent.
Fortunately, car insurance companies provide uninsured and underinsured motorist protection through additional policy limits or special clauses. Typically, this coverage compensates the policyholder directly for all damages they incur in a crash involving an uninsured or underinsured motorist up to a specified limit per person and accident. Most policies offer optional No-Fault, Personal Injury Protection (PIP) coverage.
What Can I Do if I Get Involved in an Accident with an Uninsured Driver?
Most uninsured motorists have few assets that could be used to pay for a significant accident-related loss like a totaled vehicle or medical bills. Additionally, because they’re not carrying insurance, they likely can’t afford to file a lawsuit either.
When you get into an accident with an uninsured driver, you must immediately call the police and file a report. Try to get the driver’s license plate number and make a note of the make and model of their car. You’ll need this information when you file your insurance claim or lawsuit.
Depending on your state’s laws, you can file a first-party collision insurance claim against the offending driver with your insurer. However, this will only cover the damage to your vehicle. You must file a separate third-party claim against the uninsured driver if you want compensation for your medical expenses and other losses. It can be a complex situation, and it’s advisable to seek the guidance of a skilled lawyer.
Can I Sue an Uninsured Driver?
If you get hurt in an accident with an uninsured driver, you can try to sue the driver personally. This is often a complicated process, however. If the driver is found to be at fault for the crash, they may have few or no assets to be seized to pay your damages.
Additionally, many states have laws that prevent uninsured drivers from recovering noneconomic damages for their pain and suffering after an accident. This is done in response to concerns that people who obey the law subsidize scofflaws.
If you cannot recover damages from an at-fault uninsured driver or their insurance does not provide enough coverage, you can file a claim with your own car insurance company under your uninsured/underinsured motorist coverage. If your insurer wrongfully denies or limits your UM/UIM claim, you can also file a lawsuit against them.