Your Legal Rights After Being Hit by an Uninsured Driver
Being struck by an uninsured driver is about as frustrating as they come.
Not only do you have to deal with the pain and suffering caused by injuries and vehicle damage, but you now also have to deal with who’s going to pay for it. The icing on this disastrous cake?
The person who hit you doesn’t have insurance.
Let’s dive in.
What you’ll discover:
- Why Uninsured Drivers Are Such a Big Problem
- Your Legal Options After the Crash
- How to File a Lawsuit Against an Uninsured Driver
- When Suing Is Worth It (& When It’s Not)
- Other Parties Who Might Be Liable
- Types of Compensation Available
- Wrapping It Up
Why Uninsured Drivers Are Such a Big Problem
This should upset you…
Researchers from the Insurance Research Council found that approximately 1 in every 7 drivers in the U.S. are uninsured. That comes out to 14% of drivers nationwide lacking any form of car insurance.
Let that sink in…
Every single time you get behind the wheel, you’re driving on the same roads as multiple uninsured drivers. If they cause a crash with you, your only hope is to pay for damages yourself.
Each state has unique Michigan car accident laws that affect how uninsured motorists impact you. Some states require drivers to have uninsured motorist coverage on their own auto policy, which we’ll discuss below.
Here are the worst states for uninsured motorists.
- Mississippi (almost 29% of drivers uninsured)
- Washington D.C. (more than 25% uninsured)
- New Mexico, Tennessee, and Florida (over 20% uninsured)
Take note if you live in one of these states.
Even in states where car insurance is required, millions of drivers choose to ignore the law. Now what happens when one of these drivers hits you?
You pay.
Your Legal Options After the Crash
Fortunately, you have legal options when dealing with uninsured drivers.
When someone without insurance crashes into you, you generally have three ways to pay for your damages.
Option 1: Make A Claim Under Your Uninsured Motorist Coverage
This is almost always your quickest and easiest solution. Uninsured motorist, or “UM” coverage is a provision that’s included in your own car insurance policy that covers you when the at-fault driver has no insurance.
Typically, UM coverage will pay for things like your medical bills, lost wages, and vehicle repairs. According to the National Association of Insurance Commissioners, uninsured motorists caused nearly 15% of all accidents in 2023.
If you don’t already have UM coverage as part of your auto insurance policy, call your agent today and add it to your plan. It won’t cost much and could end up saving you thousands if you’re ever in an accident.
Option 2: Sue the uninsured driver.
Yes, you can absolutely file a lawsuit against someone who hits you and doesn’t have insurance. There are some big issues with this option that we’ll discuss below.
Option 3: Pay out of pocket.
As you might have guessed, this is the worst option of them all. But it happens more often than you might think.
If you have no UM coverage and believe you can’t collect from the uninsured driver (we’ll get into this below), you’re stuck paying all the bills yourself.
How to File a Lawsuit Against an Uninsured Driver
If you’ve decided to sue an uninsured driver, you should know how the process works.
You’ll first need to determine if the uninsured driver even has the ability to pay. Don’t spend your time and money filing a lawsuit only to find out that the person who hit you is broke.
How can you tell if they’re “broke”?
Look for recoverable assets. This includes homeownership, regular employment, and cash in the bank. If that means nothing to you, here are some clues that the uninsured driver might not be able to pay you:
- They allowed their insurance to lapse because they couldn’t afford it.
- They rent an apartment or home.
- They work minimum wage type jobs with little-to-no pay raise potential.
- They have no savings and are living from paycheck to paycheck.
When in doubt, it doesn’t hurt to file a lawsuit. If the uninsured driver has assets that can be used to pay your judgment, you’ll have a strong motivation to reach a settlement.
To start a lawsuit, file a personal injury claim in civil court. From there, you must prove:
- The other driver was at fault for causing the accident
- You suffered quantifiable damage as a result of the accident
These damages can include medical bills, lost wages from work, and vehicle repairs.
If you win your lawsuit, you still have to collect from the uninsured driver. Many won’t voluntarily send you the money, which means you may have to take additional legal steps to get them to pay up.
When Suing Is Worth It (& When It’s Not)
There’s a reality to lawsuits that nobody wants to talk about.
If an uninsured driver does not have money now, winning your lawsuit isn’t going to magically fix that problem.
SUING AN UNINSURED DRIVER MIGHT BE WORTH IT IF…
- They own a home or have equity in their property.
- They have been employed by the same company for years with pay that can be garnished.
- Your damages greatly exceed your uninsured motorist policy limits.
- There may be other parties who are partially at fault for your accident.
SUING AN UNINSURED DRIVER PROBABLY ISN’T WORTH IF…
- They rent their home and have no property to their name.
- They currently aren’t employed or only work minimum wage type jobs.
- Your uninsured motorist coverage will pay for all (or most) of your damages.
- They may file for bankruptcy.
Just because you win your lawsuit doesn’t mean you’ll get the awarded damages. Insurance companies use a term called “judgment-proof” to describe insurance companies that have no real assets to pay.
Other Parties Who Might Be Liable
Believe it or not, the uninsured driver isn’t always liable for the accident.
There are several other parties who may share in the blame.
Keep these possibilities in mind if the uninsured driver doesn’t have any assets:
- Who owns the vehicle? If someone else let the uninsured driver take their vehicle, the owner may be liable for damages under negligent entrustment laws.
- Was the driver working at the time of the accident? If the answer is yes, their employer might be liable.
- Where was the driver before the accident occurred? Bars and restaurants can be sued if they continued to serve alcohol to a driver who was clearly intoxicated.
- Did a vehicle malfunction cause the accident? Part of the blame may fall on the manufacturer.
You get the point.
Although it may seem odd that someone else could be responsible for your accident, it happens more often than you’d think.
Types of Compensation Available
When you file a lawsuit against another driver, you can pursue compensation for many different types of damages.
Most people are familiar with “Economic damages.”
Economic damages refer to any of your losses that have a specific dollar amount attached to them. This includes medical bills, lost wages from work, and vehicle repair costs.
Less well known are “Non-economic damages.”
Non-economic damages cover your pain and suffering from the accident. This could include emotional distress and loss of enjoyment from life as you knew it.
Finally, you may be awarded “Punitive damages.”
Punitive damages aren’t given very often, but apply when the other driver was extremely negligent in their actions.
Wrapping It Up
Dealing with uninsured drivers sucks. But you always have options.
Don’t let an uninsured driver take advantage of you by causing an accident and walking away scot-free.
Remember…
- Check to see if you have uninsured motorist coverage first.
- Determine if the uninsured driver has assets you can collect.
- See if anyone else might be liable for the accident.
- Talk to an attorney before filing any type of lawsuit.
Time is not your friend in cases like these. Talk to an attorney as soon as possible to preserve evidence.
The least any of us should have to do is pay for someone else’s mistakes.
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