Every time we debark on a drive, we expect that everything will run smoothly; however, we know all too well the risks of car accidents. Often a traumatizing experience, there are often a series of unexpected complications especially if you’re involved in a car accident where the other driver is uninsured.
This is why it’s important to understand how insurance companies handle these situations and the steps you can take are crucial to protecting your rights and seeking fair compensation that you’re rightfully entitled to.
This article explores the actions insurance companies take against uninsured drivers and what you need to know in the unfortunate case that you’re found in this predicament.
Understanding Uninsured Motorist Coverage
Before addressing the specifics of how insurance companies pursue uninsured drivers, it’s essential to have a comprehensive grasp of uninsured motorist coverage, which is designed to protect you in the event you’re involved in an accident with an uninsured or hit-and-run driver.
What is Uninsured Motorist Coverage?
Uninsured motorist coverage is an optional (but highly recommended) addition to your auto insurance policy. It provides financial protection if you’re involved in an accident with a driver who doesn’t have liability insurance or if you’re hit by a driver who flees the scene (a hit-and-run). In the event of such an accident, your uninsured motorist coverage can help cover your medical expenses, lost wages, and other related costs.
Benefits of Uninsured Motorist Coverage
- Covers medical expenses for injuries as a result of the accident
- Provides compensation for lost wages due to time off work
- Covers property damage to your vehicle
- Protects you in hit-and-run situations
Differences Between Uninsured and Underinsured Motorist Coverage
While uninsured motorist coverage applies when the at-fault driver has no insurance, underinsured motorist coverage comes into play when the at-fault driver’s insurance limits are insufficient to cover the full extent of your damages. Both types of coverage are essential for comprehensive protection, as they can help fill the gap when the other driver’s insurance is inadequate or non-existent.
Legal Actions Against Uninsured Drivers
When an uninsured driver causes an accident, you may be tempted to pursue legal action against them to recover compensation for your damages. However, this route can be challenging and may not always yield the desired outcome.
Sue an Uninsured Driver?
Yes, you can file a lawsuit against an uninsured driver who caused an accident in which you were involved. However, it’s important to consider the potential obstacles and difficulties involved in this process. Uninsured drivers often lack the financial resources to pay for the damages they’ve caused, making it difficult to collect any awarded compensation.
The Challenges of Suing Uninsured Drivers
- Difficulty in locating and serving the uninsured driver
- High legal costs associated with the lawsuit
- Time-consuming process with no guarantee of a favorable outcome
- Inability to collect compensation if the uninsured driver lacks assets or income
Alternatives to Suing for Compensation
Given the challenges of suing uninsured drivers, it may be more practical to explore alternative options for seeking compensation. One such option is to file a claim under your uninsured motorist coverage, which can provide a more reliable path to recovering damages. In some cases, small claims court may also be a viable option, depending on the extent of your losses.
The Process of Subrogation
When an insurance company pays out a claim to its policyholder due to an accident caused by an uninsured driver, the company may attempt to recover the costs from the uninsured driver through a process called subrogation.
What is Subrogation?
Subrogation is a legal principle that allows an insurance company to seek reimbursement from the party responsible for a loss or accident.
In the context of uninsured motorist claims, the insurance company essentially steps into the shoes of the policyholder and pursues the uninsured driver for the costs it has paid out.
How Insurance Companies Pursue Subrogation
- Investigate the accident and determine who is at fault
- Locate and contact the uninsured driver
- Send a demand letter seeking reimbursement for the claim payout
- Initiate legal action with the help of a personal injury lawyer if the uninsured driver fails to comply
Impact of Subrogation on Policyholders
While the subrogation process primarily involves the insurance company and the uninsured driver, it can also have implications for policyholders. If the insurance company successfully recovers costs through subrogation, policyholders may be reimbursed for any deductible they paid towards the claim. Additionally, policyholders may need to provide information or documentation to support the insurance company’s subrogation efforts.
What to Do After an Accident with an Uninsured Driver
- Call the police and report the accident immediately.
- Gather as much information as possible about the other driver, including their name, contact information, and vehicle details.
- Take photos of the accident scene, damage to the vehicles, and any visible injuries.
- Seek medical attention, even if you feel fine, as some injuries may not be immediately apparent.
- Notify your insurance company about the accident and provide them with all relevant details.
- Consider hiring a car accident attorney to assist you with the claims process and protect your rights.
Working with a Car Accident Attorney
Dealing with an accident involving an uninsured driver can be complex and overwhelming. By working with an experienced car accident attorney, you can ensure that your rights are protected and increase your chances of receiving fair compensation.
An attorney can help you navigate the claims process, negotiate with insurance companies, and explore all available options for recovering damages. With over 40 years of legal experience, we’ve helped countless clients get what is rightfully due to them.
If you have questions, we’re here to help. Contact our law firm today for a free consultation.
Frequently Asked Questions About Uninsured Drivers
What is the uninsured driver promise?
The uninsured driver promise is a guarantee offered by some insurance companies to their policyholders. It ensures that the policyholder’s rates will not increase after making a claim for an accident caused by an uninsured driver. This does not mean they will not raise your rates without an accident for other reasons.
What if the uninsured driver flees the scene (hit-and-run)?
If the uninsured driver leaves the scene of the accident (a hit-and-run), your uninsured motorist coverage can still provide protection. It’s essential to report the incident to the police immediately and provide as much information as possible about the other vehicle and driver.
What if I don’t have uninsured motorist coverage?
If you don’t have uninsured motorist coverage and are involved in an accident with an uninsured driver, your options for recovering compensation may be limited. You may need to pursue legal action against the uninsured driver, which can be challenging if they lack assets or income.
Can I file a claim if the uninsured driver is found to be at fault?
Yes, you can file a claim with your insurance company if the uninsured driver is determined to be at fault for the accident. Your uninsured motorist coverage can help cover your damages and losses, subject to the policy limits.
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