If an accident occurs and one of the drivers is uninsured, a host of negative consequences immediately follow. Possible solutions to problems that arise from such an accident depend on many factors ranging from the condition of the driver to the type of vehicle coverage. However, there may be reasons for a driver not having auto insurance, including:
- Affordability – Premium rates for auto insurance policies are quite high in states that require full vehicle coverage, based on the age, make and model of the car and the driver’s motor vehicle history . Some drivers who live in states that only require limited liability insurance are more likely to get coverage on their vehicles due to reduced rates. Drivers who cannot afford monthly insurance premiums must change carriers or get an older car model.
- Inoperability – Although car insurance is mandatory, an inoperable vehicle is generally not insured. Proof of vehicle damage by a licensed auto repair professional must be filed with the insurance company and the state department of motor vehicles to cancel any existing coverage.
- Policy / Coverage Changes – In some very rare cases, insurance companies may change policy terms and coverage details when the company is part of a merger or purchase. Most policyholders are notified before the end of the coverage period to explore other options.
Types of auto insurance coverage
Most drivers know that it is illegal to not have auto insurance, but they are unaware of the types of coverage included in a typical full coverage insurance policy.
- Bodily Injury Liability – Payment for accident-related injuries the driver causes to other drivers and passengers
- Property Damage Liability – Repair accident-related damage payments to vehicles, buildings, or other property of others caused by the driver
- Collision – reimbursement for damage to the vehicle, regardless of who was at fault
- Personal Injury Protection – Payment for injuries to the driver and passengers of the driver’s vehicle
- Comprehensive : payment for non-accident related damage to vehicles, such as vandalism and natural disasters
- Uninsured / Underinsured Driver Coverage – Specially designed to cover the costs of injury or damage caused by an accident incurred by an uninsured driver, a run and run driver, or a driver who does not have enough insurance to pay Expenses
The consequences of driving without insurance
There is a 1 in 7 chance that an uninsured driver will be involved in an accident.
Each state imposes a different penalty for driving without insurance, but most states do require drivers to carry proof of insurance at all times. Uninsured drivers can be fined up to $ 5,000, have their licenses suspended or revoked, or jailed.
Drivers must first understand that car insurance is intended for the vehicle, regardless of the driver’s status. In other words, if Person X is a friend of Person Y and wants to use their vehicle to run an errand, any accident that occurs while Person X is driving will be covered by Person Y’s full coverage insurance policy ( according to coverage provisions). Person X could be legally penalized if at fault, but financial responsibility rests with Person Y’s insurance company due to ownership of the vehicle. Person Y could sue Person X to recover losses, so consulting with an attorney who specializes in auto accidents and claims would be the best idea.
If an uninsured driver causes an accident with an insured driver, seeking compensation through legal counsel would be the only way to recover losses. If an uninsured driver is the victim of an accident with an insured driver, the insured driver’s insurance company is liable for the damages. Simply put, the fault of the driver determines who is liable for damages and injuries. Accident penalties vary from state to state, so it is advisable to retain the services of an insurance specialist in addition to legal counsel.
Sometimes a payment plan is negotiated for damages caused by uninsured motorists. In the event that payments are lost for no acceptable reason (eg, medical emergency, loss of income), the uninsured driver’s assets can be seized in addition to being classified as high risk by insurance companies. The bottom line is that car insurance is not an option, but a necessity, to save time and money in the long run.