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How to Handle an Accident with an Uninsured Driver [Steps to Secure Compensation]
In 2024 it’s estimated that around 8% of drivers throughout the US don’t have any insurance coverage. That number can be much higher in some states. If you have been injured in an accident with an uninsured driver, you generally have three options: use your uninsured motorist (UM) coverage, sue the driver for the costs, or cover the costs yourself. The best course of action depends on your insurance policy, the other driver’s financial situation, and how much you're willing to go through to recover your losses.
Using your UM coverage is often the easiest and most reliable option if you have it. This coverage allows your insurance company to pay for medical expenses, lost wages, and vehicle repairs up to your policy limits, sparing you the hassle of dealing directly with the uninsured driver. If you don’t have UM coverage or your damages exceed your policy limits, you can try suing the at-fault driver. However, many uninsured drivers lack the financial resources to pay a judgment, making lawsuits difficult to enforce. If neither of these options works, you may have to absorb the costs yourself—an unfortunate but common outcome in these situations.
Accidents with Uninsured Drivers
Here’s a breakdown of some options on how to handle a situation when you’re in an accident with an uninsured driver.
Use Uninsured Motorist (UM) Coverage
Using your uninsured motorist (UM) is often the best option for receiving compensation for your injuries. UM coverage involves several key steps to ensure a smooth claims process:
- Report the Accident – Notify the police immediately and file an accident report. Having an official report can help support your claim.
- Gather Evidence – Collect details such as photos of the accident scene, vehicle damage, witness statements, and any relevant information about the uninsured driver.
- Visit a Doctor – Even non-emergent medical concerns should be checked out by a doctor. It’s critical that you get a doctor’s note that details your symptoms and any potential for further medical problems.
- Speak with Your Attorney – We always recommend speaking with your attorney before talking with your insurance company. In most cases, your lawyer can handle all the conversations with your insurance company.
- Notify Your Insurance Company – If you have not contacted an attorney yet, you will need to contact your insurer to report the accident and begin the UM claim process (assuming you have UM coverage).
- Provide Documentation – Submit any necessary evidence, including the police report, medical bills, repair estimates, and proof that the other driver was uninsured.
- Work with Your Adjuster – Your insurance company will assign an adjuster to evaluate your claim, determine fault, and assess damages.
- Negotiate a Settlement – The insurer will often offer a settlement based on your policy limits. Your attorney will work to represent you and help you get the best compensation possible.
- Receive Compensation – Once the claim is approved, your insurance company will pay for covered expenses, up to your UM policy limits.
If you have UM coverage but your insurance provider is not paying out fair compensation for your injuries, it's important to reach out to an experienced car accident attorney. They can help negotiate with your insurance to secure fair compensation and take the case to court if a fair settlement can't be reached.
Sue the Driver Personally
If you don’t have UM coverage, your next option is to sue the other driver personally. Suing an uninsured driver after a car accident involves several legal steps and considerations. It’s not a simple process and we never recommend you go about this without first consulting and hiring a lawyer to represent you.
- Assess the Driver’s Ability to Pay – Before filing a lawsuit, determine whether the at-fault driver has assets or income that could cover your damages. Many uninsured drivers lack financial resources, making recovery of any awarded compensation difficult. A skilled attorney will be able to help you determine the feasibility of a personal suit.
- File a Lawsuit – If you decide to proceed, file a personal injury or property damage lawsuit in civil court. You will need to prove the uninsured driver was at fault and demonstrate your losses, including medical expenses, lost wages, and vehicle repairs.
- Obtain a Judgment – If you win the case, the court will issue a judgment requiring the driver to compensate you. However, enforcement can be challenging if the driver lacks the means to pay.
- Collection Methods – If the driver refuses to pay, you may pursue wage garnishment, bank levies, or liens on their property, depending on state laws. Some states also allow suspension of the uninsured driver’s license until they satisfy the judgment.
- Consider Legal Costs and Alternatives – Lawsuits can be time-consuming and expensive. Before proceeding, weigh the potential recovery against legal fees and time spent. In some cases, negotiating a payment plan or settlement may be more practical.
If the uninsured driver lacks assets, even a successful lawsuit may not result in compensation, making uninsured motorist (UM) coverage the best option.
Accept the Loss and Move On
As painful as this one is to swallow, it’s the most probable outcome for someone who doesn’t have UM coverage. Many times the reason a driver doesn’t have car insurance is because they can’t afford it or have accidentally let their insurance lapse. While you can sue an individual for not carrying insurance, the uninsured driver often won’t have the finances if you do win the civil suit.
Deadline for Filing UM Insurance Claim
You generally have one year from the accident date to file a UM (Uninsured Motorist) claim, but deadlines vary by state. To avoid issues, review your policy and consult a legal professional if you’re unsure about the timeframe. If you want things to be taken care of in a timely manner, it’s best to wait no longer than a week before filing a claim. Time between the date of the accident and filing only makes the process more difficult.
Will Rate go up for Filing Uninsured Motorist Claim?
Filing an uninsured motorist (UM) claim typically won’t raise your insurance rates since the accident wasn’t your fault. Most states prohibit insurers from increasing premiums solely due to a UM claim. However, if your insurer reviews your overall risk profile or you’ve had multiple claims recently, your rates could still go up at renewal.
PIP or MedPay to Cover Medical Expenses
When you’re in an accident with an uninsured driver, Personal Injury Protection (PIP) or Medical Payments (MedPay) coverage can help cover your medical expenses before your uninsured motorist (UM) coverage kicks in.
PIP covers medical bills, lost wages, and essential services regardless of who was at fault, making it the first line of coverage. MedPay, on the other hand, strictly covers medical expenses for you and your passengers and doesn’t cover lost wages or additional expenses. Both types of coverage pay out immediately after the accident, allowing you to get treatment without waiting for a UM claim to be settled.
Once PIP or MedPay limits are exhausted, your UM coverage can step in to cover remaining medical costs, lost wages, and pain and suffering (if included in your policy). If you don’t have PIP or MedPay, you’ll need to rely entirely on UM coverage for medical expenses, which could take longer to process and pay out.
Expected Length of Time for a Lawsuit
The timeline for a lawsuit against an uninsured driver can vary widely, typically ranging from a few months to over a year. Factors like case complexity, court backlog, and whether the driver contests the claim can all impact how long it takes to reach a resolution.
Potential Costs of a Lawsuit
The cost of a personal injury lawsuit can play out a few ways depending on the facts of your case. Most personal injury lawyers will charge a contingency fee of 25-40% of the total settlement for standard car accident suits involving at least one insured party. This is the standard fee for most personal injury law firms when insurance is involved.
In the scenario where you are hit by an uninsured driver and you do not carry UM or UIM coverage, then you will most likely find yourself in small claims court with the support of an small claims lawyer.
Suing an uninsured driver with the help of a small claims lawyer can cost anywhere from a few hundred to several thousand dollars, depending on court fees, attorney costs, and case complexity. Small claims lawyers may charge hourly ($150–$500), a flat fee, or work on contingency (25–40% of the settlement). Even if you win, collecting payment can be difficult if the driver has no assets.
Will Attorneys Work with You for This?
Yes, but willingness depends on the likelihood of recovering damages. Some work on a contingency fee basis (taking a percentage of the settlement), but if the at-fault driver lacks assets, lawyers may be less inclined to take the case. Others charge hourly or flat fees, which means you’ll need to pay upfront regardless of the outcome. Consulting an attorney can help you assess whether pursuing a lawsuit is financially worthwhile.
Challenges with Collecting Awarded Money
When you sue an uninsured driver and win, the court issues a judgment requiring them to pay. However, the real challenge is collecting the awarded compensation. If they don’t pay voluntarily, you may have legal options like wage garnishment or seizing assets, but the reality is that most uninsured drivers don’t have much to go after. If they ignore the judgment, they could face additional consequences, including a warrant for their arrest in some cases.
On rare occasions, if your uninsured motorist (UM) coverage is paid out, your insurance company might attempt to recover its losses through subrogation—essentially suing the uninsured driver themselves. But just like your own lawsuit, this only works if the driver has assets, which is rarely the case. This is very rare and at best results in your insurance company recouping some of their losses. In most cases, a lawsuit of this type will hold them accountable, rather than providing a sense of financial recovery.
What if the Driver was Uninsured but the Car Was Insured?
Another reason to hire an attorney to help ensure you get the maximum payout and support following your accident is when a car has insurance on it, but the driver is not currently insured. In this case, the insurance policy on the vehicle may still provide coverage. Auto insurance typically follows the car, not the driver, meaning the vehicle’s liability coverage could apply to the accident. However, this depends on the policy terms and whether the driver had permission to use the car. If the vehicle was stolen, the car's insurance might be void.
If the car’s owner knowingly allowed an uninsured driver to operate their vehicle, the insurer may still cover damages under the liability policy. However, if the driver was excluded from the policy or was using the car without permission, the insurance company could deny coverage. When that happens, you would need to rely on your uninsured motorist (UM) coverage or pursue legal action against the at-fault driver. Checking the car owner’s policy details can help determine whether their insurance will cover your damages. Your lawyer will be able to easily navigate this process and advise you on the best steps.
Your Next Step After an Accident with an Uninsured Driver
Dealing with an accident involving an uninsured driver can be stressful, but knowing your options makes all the difference. Whether you file a UM claim, rely on PIP or MedPay for medical expenses, or pursue legal action against the at-fault driver, understanding how these processes work ensures you make informed decisions.
If you’ve been in an accident with an uninsured driver, don’t wait to act. Review your insurance policy, document everything, and get in contact with a skilled and experienced attorney. Protect your rights and secure the compensation you deserve by taking the right next steps.
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