Car accidents are traumatic enough, but either party not having insurance can be legally and financially devastating to the uninsured party. Even though almost all states in the United States require drivers to possess at least the state-minimum coverage, statistics show that many people opt out of uninsured motorist coverage, and there is a 1 in 7 chance of being involved in a collision with someone who does not have insurance or who does have the uninsured motorist coverage. For those unfortunate enough to be involved in an accident where either party does not have insurance or is underinsured, the results can be severe.
Since almost all states require at least liability insurance coverage in order to legally operate a vehicle, if you do not have insurance, be prepared for possible court appearances, fines, lawsuits, and license suspension. Keep in mind that no proof of insurance differs from any insurance at all. If you are insured but cannot provide proof, you will then need to take your proof to court. No insurance at all however, is a much more severe case. Although the fines and the punishments will vary depending upon your state, the repercussions of not having insurance can get extremely costly, and it is advised to retain an attorney.
In addition, if you are at fault in an accident, you run the risk of being sued by the other party which can include financial compensation to the other party for vehicle damage, bodily damage, emotional damage, and compensation for missed work and/or school.
Furthermore, depending upon your state, your driver’s license can be suspended if you have no insurance, and your vehicle may be seized for a certain amount of time.
Vehicles and Health
If you have no insurance, you will be financially responsible for any damage done your vehicle, and any health-related issues that have arrived as a result of the accident if you are at fault. On the other hand, if you are not at fault, and you do not have uninsured motorist coverage, you will have to prepare for a lawsuit to try and recover damages from the other party if they do not have insurance. This is time consuming and costly, and the other party may simply not be able to pay, making the process of recouping your loss difficult and minimal.
It is highly recommended that you always keep insurance coverage on your car, including extra coverage that can protect you in the event of an accident with another driver who is not insured. If you’ve been involved in an accident without having insurance or with an uninsured party, consider hiring a car accident lawyer.