When another driver crashes into your car, it’s only natural to feel angry and possibly scared at first. Once you have a chance to calm down, you may still feel upset but be comforted by the fact that insurance will take care of everything. But what happens when the other driver doesn’t have insurance? Keep reading to find out.
First, File a Police Report — Always
You might feel bad for the other driver and not want them to go to jail if they tell you they have no insurance. But if you don’t file a police report, you may lose the chance to receive compensation for the accident. Not having a police report could harm your insurance claim or possibly have it end up being denied.
In addition, you may not be able to verify who the other driver is or find them later if the police don’t come and run their information. This is especially important if you later find out your injuries or the damage to your car are worse than you thought.
Can the Other Driver Make a Claim On Your Insurance?
If the other driver doesn’t have insurance, they may try to find a way to get you to pay. Who pays is decided just like any other accident — by who is at fault. If the police, insurance claims adjuster, or court find that the other driver was responsible for the accident, neither you nor your insurance will be liable to them.
It’s a common myth that uninsured and underinsured motorist coverage covers another driver who doesn’t have insurance or doesn’t have enough insurance. This coverage actually covers you not third parties.
What Does Uninsured and Underinsured Motorist Coverage Do For You?
Uninsured and underinsured motorist coverage basically takes the place of the other driver’s liability insurance. You’re essentially covered the same as if they had an insurance policy identical to your UI/UIM coverage. If the driver has no insurance, your policy will cover your medical bills, lost wages, property damage, and other costs up to your policy limits. If the other driver doesn’t have enough insurance, such as a legal-minimum policy when you suffered major injuries, their insurance will pay up its limits, and then your UI/UIM coverage will kick in to cover the rest up to your own limits.
Doesn’t Your Other Insurance Cover These Claims?
You may or may not have other insurance covering accidents caused by uninsured or underinsured drivers. Damage to your car may be covered under your standard policy, but you may have additional property damage, such as valuables in your trunk, that isn’t covered. You may have PIP coverage or health insurance that covers some of your medical expenses, but you may have additional uncovered costs plus your deductible. In addition, lost wages and inability to work usually won’t fall under these other types of insurance.
Ask Your Insurance Agent
To find out if you’d be covered in an accident caused by an uninsured or underinsured motorist, talk to an insurance agent at Frangquist Insurance Agency. We can help you build a complete insurance package with multiple types of coverage to cover all of your insurance needs without paying for duplicate coverage.