Why Do Insurance Companies Go After Uninsured Drivers? Do you know that in the United States, most of the population drives, and most are uninsured drivers? Yes, it is critical to ensure you have auto insurance because accidents can happen anytime.
You are a conscientious car owner. You had insurance when the accident occurred. But what if the other driver did not? How do you recoup money for auto repairs and medical bills in such a situation? However, the most accessible approach to pay for damages is to obtain your insurance.
Can Insurance Companies Go After Uninsured Drivers In 2023?
Usually, it becomes uncommon for an insurance company to pursue an uninsured driver after an accident. Primarily the insurance companies contact the drivers and request them to file a claim on their behalf. According to our research, it is found that uninsured drivers do around 30% of car accidents.
To find out whether the driver is uninsured, they ask clients, or they may examine driver’s license records and search databases for car registrations; they can also contact a local police station. In case they are found guilty, they have to pay a $1,000 fine or can be in jail for a while.
Also, the process and probabilities can differ depending on the country where the accident occurred. The United States of America has a law to register every vehicle to obtain car insurance. If you are in an accident and the other motorist does not have insurance, the insurance company can sue them for damages. However, this process might take a longer time than usual.
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What Is Subrogation? How Does Subrogation Work? 
When in a vehicle accident, the fault driver’s insurance company is responsible for reimbursing the injured driver’s insurance for the payment of damage is referred to as subrogation.
There are some simple steps why can understand how it works.
- Your auto insurance provider would pay for your losses even if the other motorist were at fault if you have the proper coverage.
- To recoup their losses, your insurance company would file a subrogation claim against the guilty party – in this case, the uninsured driver.
- The uninsured driver pays your insurance company the outstanding charges mentioned in the subrogation claim.
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In Which Case Insurance Companies Go After Uninsured Drivers?
The insurance company can go after uninsured drivers if they were at fault in a car accident but remember you had to pay for your losses, charges that the other driver’s liability insurance should have covered. Also, Insurance companies might pursue compensation from the uninsured driver when you make a first-party claim.
- Collision Coverage
- Uninsured/Underinsured Motorist (UM/UIM) Coverage
- Medical Payments Coverage
1. Collision Coverage
Collision coverage provides for car damages regardless of who’s fault was there in the car accident, even an uninsured driver. Make a car insurance claim, but the uninsured motorist is found to be at fault. Your car insurance company may seek compensation from the other driver after covering your damages.
2. Uninsured/Underinsured Motorist (UM/UIM) Coverage
If you are in an accident and the culpable driver is uninsured, your UM insurance will cover your property damage and injuries. While the UIM insurance works similarly, except that it covers the difference if the guilty motorist has insurance but not enough coverage to compensate you for your losses.
3. Medical Payments Coverage
For medical payments coverage, If the other driver was to blame, their liability insurance should cover your medical expenses. If you have medical payments coverage, it will protect your medical bills. Your insurer can also file a subrogation claim against the driver.
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Difference Between Uninsured vs Underinsured? How Does It Work?
Whether or not the individual who injured you had auto insurance to cover their acts is the main difference between uninsured and underinsured motorist claims. You must file two claims under underinsured motorist coverage: one with your insurance and one with the other driver’s insurer. In contrast, when dealing with an uninsured driver, you only need to submit one claim to your insurance provider through your uninsured motorist (UM) policy.
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Does Filing A Lawsuit Against An Uninsured Driver Worth It? 
If you are injured by a driver who does not have UM or UIM, you may still sue for personal injury. Now you must be wondering How to file insurance claim against other driver? Many lawyers who assist persons who have been injured provide free consultations so that you can seek their advice before going to court. If the driver who hit you does not have automobile insurance, they will most likely be unable to pay for your damages and medical expenditures. However, depending on the state, you have between 30 days and two years to launch a lawsuit.
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Can You Drive Without Insurance In 2023?
Car insurance is essential in almost every state, but the question is, can you drive without insurance? You could face penalties, license suspension, registration suspension, and possibly jail time if you drive without insurance.
If you possess a car and are currently uninsured, find insurance coverage as soon as possible. Most drivers may obtain affordable rates by browsing around and comparing vehicle insurance quotes online.
The answer to the question “Do Insurance Companies Go After Uninsured Drivers” is yes. Insurance companies do take action against uninsured drivers in case of accidents and can raise complaints too. We always advise having reliable auto insurance that comes with a host of advantages and protects future costs.
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Frequently Asked Questions
FAQ 1: What If the Other Driver Is Uninsured, But Is Driving an Insured Car?
Answer: If you are in an accident with a driver who does not have automobile insurance but is driving an insured vehicle, the insurance policy that comes with the vehicle will cover your accident.
FAQ 2: Is Driving Without Insurance Illegal?
Answer: It can be illegal in some countries or states. You are not permitted to drive in any state unless you can demonstrate financial responsibility for damages or liabilities in the event of an accident.
FAQ 3: What Are The Penalties for Being Uninsured While Driving
Answer: Driving uninsured is a criminal offense in most states and can result in a prison sentence. Unless you cause a catastrophic accident, you are unlikely to face jail time for a first violation. However, repeat infractions will result in fines and harsher sentences, including possible jail time.