What Happens If You Are Involved In a Car Accident Without Insurance?

Have you just gotten into a Car Accident without Insurance? Are you wondering what to do and how to do it? Well, a car accident can be nasty. It can give you a hard time if you are not insured. That’s why it is always good to have valid insurance when driving.

It is illegal to drive without insurance in most countries and states. If you are found doing so, you risk being penalized heavily. But then, the accident has happened. What do you do? Read on to find a list of different scenarios and what you can do in each of them.

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But First, Can You Drive Without Insurance?

It is illegal to drive without insurance in most countries and states. If you are found doing so, you risk being penalized heavily, especially when involved in an accident. When this happens, your vehicle could be badly damaged. And you may not be in a position to pay for such damages. Worse still, should you or your passengers get injured, none of you gets compensated. This applies whether the accident is your fault or not.

You need to be insured so that you can comfortably settle any medical bills after an accident. While the other driver could handle your physical damages from their liability insurance, the cost of your pain and suffering will be left.

Whether it is legal or illegal to drive without insurance in your state, it is good to save yourself the trouble that comes with accidents. How? By getting auto insurance. (1)

What Penalties Can You Get If You Drive Without Insurance?

Every state has different ways of handling this. You of course expect heavy fines. On top of that, however, you may get a criminal penalty depending on the state you live in. If you get an accident without insurance, you are likely to be charged thousands, if not hundreds of dollars.

A good example is New York where: Your vehicle registration and driving license get revoked for a minimum of one year You pay a fine of about $1,500 to the New York State Traffic Court You pay $750 as civil penalty to the DMV for restoring your driving license. (2)

So, What Happens When an Uninsured Driver is Hit by an Insured driver?

Have you been injured in a car accident where the other driver is insured and you are not? Well, if you were not insured, there are restrictions on what you can recover, if anything. Some states have a kind of rule popularly called “No Pay, No Play.” In these states, if you are involved in an accident and you are uninsured, the type of compensation you can receive is limited. In some of them, you are not compensated anything at all.

This rule is aimed at being fair to every party in case of an accident. Therefore, if you don’t have the necessary insurance that can compensate another person fully, don’t expect to be fully compensated. You should not claim another person’s insurance benefits because you are a victim yet you are uninsured.

And What Happens When an Uninsured Driver Hits an Insured Driver?

Solving this depends on the state where you live. Does it require car insurance or it doesn’t? IF it requires car insurance, you will first be penalized for driving without insurance. YOu will also take financial responsibility for the damages you cause. The driver may sue you as well. If he does, you will have legal fees to pay from your pocket.

Some states in the US however are no-fault insurance states. In such states, drivers are compensated by their insurance companies. It does not matter who caused the accident. But you will, however, face the consequences of driving without insurance.

If the state does not require insurance, however, the driver could sue you. You will be required to pay for damages from your pocket. Your license could be revoked as you face other consequences of driving uninsured. (3)

What Next?

Accidents are usually unpredictable. It is therefore good to ensure that you are insured every time you go driving. If you are uninsured and end up in an accident, do the first things first. Should someone be injured, call for medical help. Get to call your local law enforcement to the accident scene. Take photos of the scene to help you tell the story. And whether you are at fault or not, contact a car accident attorney. He will help represent you should the accident end up in court.

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