Uninsured Drivers: Your Rights And What To Do

Being in a car accident is stressful enough without the added worry of the other driver not having insurance. Unfortunately, this is a reality for many, with around 14% of drivers in the US not having car insurance. If you find yourself in this situation, there are a few options available to you. You can file a compensation claim with your insurance company, file a lawsuit against the other driver, or, if the other driver was driving a vehicle that is insured, the insurance policy that runs with the vehicle may extend to your accident.

Uninsured motorist coverage

In some states, uninsured motorist coverage is mandatory, while others only require it for bodily injury. Still, others offer it as an option, and it is highly recommended for all drivers, as it provides financial protection in the event of an accident with an uninsured driver. Without this coverage, you could be responsible for paying for medical bills or vehicle repairs out of pocket.

It is important to note that insurance companies typically set time limits for filing uninsured motorist claims, so it is crucial to initiate the process as soon as possible after learning that the other driver is uninsured. This coverage can provide valuable financial protection and peace of mind, ensuring that you are not left bearing the full cost of repairs and medical expenses in the event of an accident with an uninsured driver.

Underinsured motorist coverage

It's important to note that insurance companies typically limit the amount of time policyholders have to make underinsured motorist claims, often as few as 30 days from the date of the accident. So, it's crucial to act quickly and gather as much information as possible at the scene of the accident, including the other driver's insurance information and license details.

No-fault car insurance

In no-fault states, drivers are typically prohibited from filing lawsuits for minor injuries suffered in an accident. However, some no-fault states allow drivers to opt out of buying a no-fault car insurance policy, retaining their right to sue for injuries suffered in an accident, regardless of severity.

If you're in an accident with an uninsured driver, your uninsured motorist coverage will pay for repairs and medical bills. If the uninsured driver was at fault, their insurance company will try to recover what they paid you from their insurance. If the uninsured driver was driving a vehicle that is insured, the insurance policy that runs with the vehicle will extend to your accident and resulting injuries and losses, unless the driver didn't have permission to drive the car or has been specifically excluded from coverage.

Underinsured motorist coverage will pay for damages sustained in an accident with a driver who has a car insurance policy in place but not enough coverage to pay for your injuries. Your underinsured motorist coverage will help cover the difference between the other driver's coverage and the total amount of your losses.

Personal injury protection (PIP)

PIP covers medical expenses for both injured policyholders and passengers, even if some don't have health insurance. It also covers medical and rehabilitation expenses, loss of income, and funeral and burial expenses. In some states, PIP also covers replacement services for tasks you cannot perform due to your injuries, such as childcare or house cleaning.

The main goal of PIP is to provide prompt payment for auto accident injuries. Because PIP claims are paid regardless of who caused the accident, there's no waiting for a liability claim or lawsuit to be resolved. This can be especially useful when the other driver has no insurance, as your own insurance coverage will pay for your medical bills and certain other covered losses.

It's important to note that PIP has limits, and if the cost of necessary medical care exceeds these limits, health insurance may cover further expenses. Additionally, PIP is not available in all states, and requirements for this coverage vary. While it is mandatory in some states, it is optional in others, and not available in others.

Medical Payments (MedPay) coverage

MedPay is supplemental to your regular health insurance, and rules and regulations vary by jurisdiction about which is the primary payer for various treatments and medical expenses. In some states, MedPay is a required coverage on your auto insurance policy, while in others, it is optional. It is important to note that MedPay does not cover lost wages or pain and suffering, which are covered by PIP.

MedPay is a first-party coverage, which means that your insurance company will pay for covered losses up to your limit. The coverage takes effect regardless of which driver is considered at fault for the accident. This is particularly useful in no-fault states, where you can sue the other driver for losses, but only when injuries are severe or when medical expenses meet a certain threshold.

When choosing a MedPay limit, it is essential to consider whether your auto insurance policy provides medical expense coverage through another method, such as PIP, and whether your health insurance plan covers injuries from a car accident. Additionally, understanding your health insurance deductible and co-payment can help determine the appropriate MedPay limit.

In summary, Medical Payments (MedPay) coverage is an optional or required addition to your auto insurance policy, depending on your state, that provides medical expense coverage for individuals in your car and pedestrians injured in an accident, regardless of fault. It is supplemental to your regular health insurance and can help cover deductibles, co-pays, and other medical expenses not covered by your health insurance plan.

Frequently asked questions