WEDNESDAY, JANUARY 20, 2021
Individuals driving uninsured is an unfortunate and common occurrence throughout the U.S. When you have the right insurance, an accident with an uninsured driver can be handled easily. But what happens if neither you or the other driver is carrying insurance?
In many cases, each driver will be expected to pay for their own damages and injuries.
Uninsured Accidents in Fault States
Most states fall into two categories when it comes to car accidents: at fault or no fault. Fault states such as California calculate how much auto accident compensation based on who is at fault for an accident. For example, say you fail to yield and hit another vehicle merging onto the highway. In this case, you may be responsible for the damages caused since you are primarily responsible for the accident. States like California operate on a comparative fault system, however, meaning that while you may be 80% at fault and thus responsible for 80% of the damages, the other driver may be responsible for the remaining 20%.
Normally, the other driver in the accident would be able to file a claim with your insurer to receive compensation for their damages. If neither of you have insurance, however, things get a little more complicated.
Instead, you will need to cover most damages out of pocket. This also leaves you open to lawsuits. If you cause an accident with another uninsured driver, for example, they may sue for their damages. Lawsuits on their own can be incredibly expensive when it comes defense costs, court fees and settlement expenses.
This does not include the possible legal repercussions. If you are caught driving without insurance, you could face fines, tickets and even jailtime.
Is Uninsured Motorist Coverage Required?
Uninsured motorist coverage is an often optional coverage that is available on most full coverage auto insurance policies. Even if your state doesn’t require this coverage, it is crucial to have in order to protect against uninsured drivers. If you are in an accident with a driver who does not have liability insurance, uninsured motorist coverage can help repair or replace your car after an accident.
In most states, this insurance does not include coverage for medical bills. That is because you are expected to have medical payments coverage. Medical payments coverage provides compensation for medical bills you and your passengers may face after an accident, regardless of fault.
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