Do Insurance Companies Go After Uninsured Drivers?
Accidents on the road occur every day due to a lot of factors. If you face a car accident, and the other driver is responsible without auto insurance, you may wonder, Do Insurance Companies Go After Uninsured Drivers? The answer is: it depends.
Insurance companies can pursue a third party for losses they paid if another party can be held liable. The process of seeking reimbursement is called subrogation. However, not all insurance companies will pursue subrogation against uninsured drivers.
In this blog post, Article Connects will explain how subrogation works when it applies and how to protect yourself from uninsured drivers.
“An accident can be harmful. An accident with an uninsured driver is worse.”
Do Insurance Companies Go After Uninsured Drivers?
Subrogation allows the insurance company to recover the amount they paid you to cover your claims. For example, if you have collision coverage or uninsured/underinsured motorist (UM/UIM) protection, your insurance company will pay for your vehicle damages.
However, subrogation is sometimes worth it for the insurance company. Collecting money from uninsured drivers may be easier if they have assets. The insurance company may also consider the legal costs and time involved in pursuing a lawsuit against the uninsured driver.
Your Insurer May Pursue a Lawsuit if You Have a Collision or UM/UIM
The chance of your insurance company going after an uninsured driver depends on the type of coverage you have on your policy. Typically, your insurance provider will only pursue the other driver if you have the following insurance coverage:
Collision Coverage
Regardless of who was blamed, collision coverage will assist with covering your vehicle’s damages if you collide with another car or item. It is primarily optional, but if you have a loan or lease on your car, your lender may require it.
Uninsured/Underinsured Motorist (UM/UIM) Protection
Depending on whether you have uninsured motorist bodily injury coverage, property damage liability insurance, or both, this protection may pay for your expenses resulting from an accident, including vehicle repairs. UM/UIM coverage is not mandatory in some states and mandatory in others, but it is highly recommended if you encounter an uninsured driver.
How to Collect Damages Through UM/UIM?
If your policy has UM/UIM coverage, you can claim with your insurance company to cover your damages.
Report the Accident
Take pictures of the site, the vehicles involved, and any injuries you incurred as soon as you can following the collision.
- Obtain the other driver’s contact and insurance details.
- Gather testimony from any onlookers who saw the accident.
- A file of the police report and any pertinent medical records should be obtained.
- Keep track of all of your doctor’s appointments and expenditures.
- Recall the events leading up to, during, and following the accident.
All the information can be used to support your case and demonstrate that the at-fault motorist was negligent and underinsured.
Notify Your Insurance Company
Contact your insurance company after the accident and inform them you were involved with an uninsured driver. Provide them with all the information and evidence you collected. Follow them on how to file a UM/UIM claim and what documents they need from you.
Be honest and cooperative with your insurance company, but do not admit fault or agree to any settlements without consulting a lawyer first.
Review Your Policy Limits
Your UM/UIM coverage will only pay up to the limits you have on your policy. For example, if you have $25,000 in UM/UIM bodily injury coverage per person and $50,000 per accident, and your medical bills are $30,000, your insurance company will only pay $25,000. The remaining $5,000 must come out of your pocket or from another source. Therefore, reviewing your policy limits and ensuring they are adequate for your needs is vital.
You Can File a Personal Suit Against the Other Driver
If you do not have collision or UM/UIM coverage on your policy, you may have another option to collect damages from the uninsured driver: filing a personal injury lawsuit.
A personal injury lawsuit is a civil action that enables you to demand payment from the party responsible for your damages and injuries. The uninsured driver might be sued for personal injuries in the court where the collision occurred. However, suing an uninsured driver comes with significant difficulties and dangers.
Burden of Proof
You must establish the other driver’s negligence and your injuries and damages to succeed in a personal injury claim. Additionally, you must demonstrate the degree of your losses and the appropriate level of compensation. Substantial evidence, such as police reports, medical records, witness testimonies, and expert testimony, are vital to support this claim.
You may also have to deal with defenses and counterclaims from the other driver, such as contributory negligence or comparative fault. These can reduce or eliminate your recovery if they show that you were partly or wholly responsible for the accident.
If You Win Your Lawsuit!
Even if you succeed in proving your case and obtaining a judgment against the uninsured driver, you may still need help collecting your money. A decision is a court order that states how much the defendant owes you and how they should pay you. However, a judgment does not guarantee payment.
The uninsured driver may need more money or assets to pay you, or they may try to hide or transfer their assets to avoid paying you. You may have to take additional steps to enforce your judgment, such as garnishing their wages.
Conclusion
Insurance companies may pursue uninsured drivers to recoup the expenses of a claim; however, this is only sometimes the case. Your insurance provider may cover your damages if your policy includes collision or UM/UIM coverage before pursuing subrogation rights against the uninsured motorist.
However, this does not guarantee they will recover any money from them. If you do not have collision or UM/UIM coverage or your damages exceed your policy limits, you may file a personal injury lawsuit against the uninsured driver. However, it is challenging and risky and does not guarantee the payment. The best way forward is to have adequate insurance coverage on your policy and to drive safely and defensively on the road.
