Car Accident With No Insurance: What Are Your Options?

Accidents are bound to happen, but can become suddenly more complicated if one of the person’s involved does not carry insurance. Being involved in a car accident with no insurance can be a costly mistake, and one should be aware of their options if it happens.

Most states require that a minimum amount of insurance is carried, but truly there is a 1 in 7 chance that an uninsured motorist will be involved in an accident. The majority that does not carry insurance cannot afford it in the first place.

Options When the Accident Occurs

Even if you happen to be the person that has the insurance, many times the chances of recouping from the uninsured person will be minimal. As stated before, someone that is uninsured most likely is that way because he can’t afford it. It is possible to seek legal action against that person, but you will end up responsible for those costs if the person is unable to pay.

It is possible that the insured person’s own policy has coverage for uninsured drivers. Many states make this coverage mandatory. Contacting your own insurance company or attorney following an accident is important as that person can quickly review the options and if you are covered.

Immediately following an accident, the police should always be contacted, and the vehicles not moved, even in the case of a hit and run. If an injury occurs, that person should also not be moved. As soon as the police arrive and have secured the area, those involved will fill out a written report. Sometimes a ticket is issued to one or both of the drivers and receiving the ticket is not an automatic admission of guilt.

Most importantly, contact your insurance company right away. Sometimes it is also necessary to contact an attorney specializing in car accidents with no insurance who can advise the next steps to take.

Being the Uninsured Driver

It may be that you are the uninsured driver. If that is the case, it is still important to involve the police for a written report in order to protect your rights.  If the accident was not your fault, and the other person was insured, then his policy will be responsible for your damages.

However, if the accident was a result of something you did, it is still important to have a written statement. It is possible the other driver may sue for damages, and you will need proof of what actually happened. If contacting an attorney is possible, it should be done in order to further protect your rights and assets.

Depending on the type of accident, a payment schedule may be negotiated through the other driver’s insurance company to show good faith. As the uninsured driver, you may be only required to pay the deductible if the other driver’s policy had a rider for the uninsured.

Knowing your options regardless if you are insured or uninsured in this situation is important. Consulting an attorney or insurance specialist in order to understand the process further will be essential to settling the issue.
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