Car accidents are incredibly stressful. If you get into an accident without insurance, it’s even worse. You may face serious consequences, including fines, loss of license, and jail time.
What you face depends on the circumstances of the accident and your driving history. Rosenfeld Injury Lawyers can help you understand your rights.
Legal Consequences in the US
In all states except Virginia and New Hampshire, driving without car insurance in the United States is illegal. [1] You will face severe legal consequences if you are caught doing it, especially due to a car accident. The level of severity depends on if you were at fault.
Driving Without Insurance
Because you must carry insurance to drive in the United States, there are strict penalties for driving without it. These are intended to deter people from doing it and can include the following.
- Fines: If you are caught driving without insurance, you will be subject to a fine. The fines vary by state.
- License Suspension: Your license can be suspended, and your driving privileges can be revoked. Your license can be entirely removed if you have been caught driving without insurance multiple times.
- Vehicle Impoundment: Your car may be towed if you were driving without a license, even if it is not damaged. It is up to the police officer on the scene. They may ask you to call another person to remove the car because.
- Jail: You may be arrested at the scene and face jail time if you drive without a license.
- More Expensive Coverage: If you are charged for driving without insurance on your record, your insurance premiums will usually be higher when you get car insurance. You are considered a higher risk for an insurance company to insure.
Specific consequences vary based on the state in which the car accident without insurance happened. When you engage with legal representation, they can walk you through your potential consequences.
Fault in the Accident
While you can still get in trouble for driving without a license, if you are not at fault in the accident, you may face less severe consequences.
Non-insured drivers who were at fault for the accident will be responsible for:
- Car Accident Costs: You will be legally responsible for paying for the vehicle’s damages. This includes the other driver’s injuries and any repairs your car needs.
- Medical Expenses: All medical bills will be your responsibility if you are the at-fault driver. You must pay their bills and yours if you were injured during the accident.
- Legal fees: You may be sued for the accident, and you may need to pay for their legal fees in addition to the other costs. Without an insurance company, you have no one to help mitigate your personal costs.
These are in addition to other personal fees and penalties you incur as a result of getting into a car accident without insurance.
Non-insured drivers who were not at fault for the accident will not be responsible for paying for those car costs, medical expenses, and legal fees. You may even choose to pursue compensation from the insured driver to help recover your costs.
You will still face potential fines and consequences for driving without insurance.
Financial Implications of a Car Accident Without Insurance Coverage
The cost of car insurance may be a significant determining factor in whether a driver can afford it. However, the financial implications of a car accident are significant, and they are exponentially higher if you do not have insurance.
If you are caught, you may end up paying more in the long term because of a car accident.
Out-of-Pocket Expenses
The out-of-pocket expenses are very high for an uninsured driver, especially if they are at fault for the accident. They are financially responsible for paying for everything, including:
- Damages: This includes property damage, vehicle repairs, replacement costs, bodily injury, pain and suffering, lost wages, and more for the other driver. This does not begin to address any damages you incurred.
- Medical Expenses: All treatment costs, including any doctor’s bills, physical therapy, mental health treatment, and more, will be your financial responsibility.
- Fees: Not only do you have to pay for the other driver’s costs, but you also have to pay for your own. This can include fees for driving without a license, getting your car out of impound, etc., on top of personal legal fees.
Ultimately, when you do get auto insurance, you will often be considered a high-risk driver, and you will have to get even more expensive insurance than you would have before.
Potential Lawsuits
If you forego insurance, you are opening yourself up to potential lawsuits. The other driver, their insurance company, and legal representation will try to hold you personally liable for the accident and property damage.
When you have insurance, it protects you. The insurance company will be responsible for many of the damages, and while you can still go after the insured driver for some personal injury costs, insurance companies tend to bear the most significant burden of cost.
This is not the case for uninsured drivers. You can be sued by other parties involved in the accident for damages and injuries that were incurred as a result of the auto accident. You will be responsible for everything when you drive uninsured. This costs more than liability insurance.
Impact on Future Car Insurance Coverage Premiums
You will often need to prove that you carry auto insurance to get your license or car back to prevent you from driving uninsured again. When you reach out to a car insurance company, this car accident will be on your record.
This is not a good sign to many companies, and you typically must pay more for your auto insurance coverage in the future. As a result, your insurance premiums will be higher than when you originally thought the car insurance policy was too expensive.
Impact on the Other Party
The other driver with insurance coverage has to deal with the consequences of uninsured drivers, which can be a significant burden.
Difficulty in Obtaining Compensation
If a person is driving without insurance, there is a chance they were doing it because they could not afford the coverage. If that’s the case, the other driver who was insured will likely face difficulty obtaining compensation for damages and injuries from the uninsured party.
You and your insurance company can try to obtain compensation from them, but it will likely come to nothing. Depending on your insurance policy, you may be responsible for repair and replacement costs, medical bills, and more.
Uninsured Motorist Coverage
On top of your insurance policy, you can also add on uninsured motorist coverage. This is a supplemental policy, but it is one that will come in handy if you happen to get into a car accident with an uninsured driver.
Uninsured or underinsured motorist coverage will pay for the cost of car repairs, medical bills, and other expenses that happened as a result of the accident. The cost and coverage of this supplemental policy varies, so it’s essential to consult with a licensed insurance agent to understand your options.
Potential Legal Action
The other driver may take legal action against the uninsured driver to help recover costs. If this happens and the uninsured at-fault driver cannot pay, they could face the following consequences:
- Wage Garnishment: Taking a portion of your paycheck to pay the settlement.
- Bank Account Levy and Property Lien: They can collect your money based on your accounts and any property you own. Your home can be foreclosed to help settle the debt.
- Asset Seizure: You may be required to sell your belongings to help pay the debt.
The other driver has options when they get into an accident with an uninsured driver, and an experienced personal injury lawyer can help you navigate your best options to recover compensation.
Seeking Legal Assistance
If you have been in a car accident without insurance, you may want to obtain legal counsel. They can help represent you in the legal system. Lawyers usually take a portion of your settlement as payment, making it a more affordable option for many.
Importance of Consulting a Lawyer
As you decide which lawyer to consult with, consider the following.
- Area of Specialty: Work with a lawyer who is familiar with car accidents and insurance law. They can help you understand your legal options and the potential consequences of driving without a license. They may be able to negotiate lesser consequences.
- Success Rate: Many lawyers will list summaries of recovered compensation and testimonials on their website so you can understand their success rate.
- Communication Skills: You need a lawyer who can help keep you informed throughout the process and explain what’s happening in terms you can understand. This will help make the process smoother.
Lawyers are there to be your advocate throughout the entire legal process. Hiring the wrong lawyer can impact your case’s outcome.
Legal Representation and Defense
You still have rights if you get into a car accident without insurance. Securing legal representation can help protect your rights and minimize the potential legal and financial repercussions.
- Seek Maximum Compensation: If you are not the at-fault driver, an attorney can help you get the maximum settlement for the car accident. You can recover compensation for your property damage, bodily injury, pain and suffering, lost wages, and more. A personal injury attorney knows how to get the settlement you deserve.
- Reduce Jail Time or Legal Fines: Lawyers can help represent you and reduce the money you must pay as a result of driving without auto insurance. If you are facing jail time, they may be able to reduce the time you face.
- Reduce Car Accident Costs: Lawyers can help represent you as the other party seeks damages. They know insurance laws and can help them work in your favor.
A lawyer is there to represent your best interests, regardless of the circumstances surrounding the accident.
Negotiating with Other Parties
Car accident lawyers are well-versed in the legal system and will negotiate with other parties involved in the accident or their insurance companies. This can include:
- Settlement: The money that you need to pay as a result of the accident. If you were not at fault, it could be the amount of money that you received as compensation.
- Legal Consequences: You will face fines and other consequences as a result of driving without car insurance. A lawyer can help negotiate how much on your behalf.
- Driving Future: Your lawyer may negotiate the return of your driver’s license if you get insurance and complete driver’s education.
As you consult with a lawyer and share details of your case, they will know what the best outcome is and work towards achieving it on your behalf.
The Bottom Line
Most states require car insurance in the United States. If you get into an accident without it, you may face legal, financial, and personal consequences. These include, but are not limited to:
- Legal: Fines and jail time can all result from driving without car insurance.
- Financial: Personal injury, vehicle damages, lost wages, etc will be your financial responsibility. If you cannot pay them, you may face garnished wages, property liens, and more.
- Personal: Driver’s license suspension or revocation can result from driving without insurance.
You can lose a lot if you are caught driving without insurance. However, you have options.
Consult with an experienced attorney from Rosenfeld Injury Lawyers to understand your options. We will be your best advocate throughout the legal process and get you a fair settlement where applicable.
Contact us today at (888) 424-5757 or by filling out the form on our website to get your free consultation today.
References: [1] Market Watch