What happens if someone hits you and you don’t have insurance?
According to a recent report released by Insurance Research Council (IRC), nearly 12.6% of motorists in the U.S. are uninsured.

 

In other words, approximately 1 out of 8 drivers are uninsured. Yet, except for New Hampshire and Virginia, almost every state expects the driver to have some car insurance that covers a minimal amount of injuries and damage repairs.

So, suppose you live in a state that requires vehicle insurance, and you don’t have and are at fault.

In that case, you can be subjected to penalties depending on the state law, the other party, and the severity of the accident:

This can include:

  • Fines and jail time.
  • Suspension of driver’s license, vehicle registration, and license plate.
  • Being required to file an SR-22 form.
  • Impoundment of vehicle.

 

If you are involved in a car accident but do not have insurance, then the legal and financial obligations would depend on state law and whether you are at fault.

 

So, let’s look at the scenario wherein you live in a state that requires insurance, you don’t have, and you have been hit.

Your eligibility to recover the damages depends on the state you live in. 11 states in the U.S. follow the “No Pay, No Play” policy which limits or prevents uninsured drivers from claiming any amount for damages.

The 11 states that follow this policy are Alaska, California, Indiana, Iowa, Kansas, Louisiana, Michigan, Missouri, New Jersey, North Dakota, and Oregon. In addition, some states let uninsured drivers claim medical bills, lost income, or repair charges.

 

So, now you may be haunted by the concern that the above scenario lands you in only losses. Then the answer is no.

Drivers like you, who don’t have insurance, are suggested to have UM or UIM coverage.

Decoding Uninsured Motorist Coverage

This coverage compensates damage costs for drivers with no insurance. This is useful for drivers with no insurance or in a hit-and-run case.

However, the coverage varies from state to state but ideally covers medical bills. At times, it may also include property damage. Uninsured motorist coverage is mandatory in 20 states and optional in others.

 

Decoding Underinsured Motorist Coverage

Complementing the UM coverage, UIM coverage can cover damages beyond the insurance limits of the driver who hit you.

However, if you don’t have UM or UIM in addition to insurance, you still have a scope of claiming if you meet with an accident.

The answer is Personal Injury Protection (PIP).

The PIP makes you eligible to claim for injuries and recover economic and noneconomic losses caused by accident. This includes

  • Head and brain injuries,
  • Internal bleeding,
  • Organ damage
  • Limb amputations
  • Fractures
  • Spinal injuries and paralysis.

Thus, it is loud and clear that your eligibility to claim an accident dramatically depends on who is at fault.

If you are someone who is not at fault and doesn’t have insurance, your ability to get compensation for the accident is significantly less. However, hiring a lawyer can save you and earn you some compensation.

 

Important: The articles available on requestlawyerservice.com are not legal advice nor a replacement for a lawyer. The contents are usual information and guidance concerning different lawful issues. We make sure that these articles prove helpful to you, but we do not promise that they are suitable for your circumstance. Hence, we strictly suggest you get expert legal advice. Consult or hire an attorney in case of any uncertainty.