eTopical Precious Finds
Being involved in a car accident is stressful, but the situation gets complicated when the at-fault driver is underinsured or doesn’t have insurance. Normally, you would get the other driver’s information, file a police report, and then file an insurance claim. However, when there is no insurance company involved, you’ll need to take a different route.
1. Handle the basics first
Take care of your basic needs first. This includes seeking medical care, reporting the accident to police, getting witness contact information, and gathering evidence of the accident. If you haven’t already, take clear photos of the damage to your car, your injuries, and the area where the accident occurred.
An uninsured motorist who causes an accident might try to shift the blame to you, so the more evidence you have, the better. If your state recognizes comparative negligence, you might be assigned partial fault, which will reduce your compensation. However, an unethical uninsured motorist has every reason to dodge blame and lie about the accident. This makes gathering evidence even more crucial.
2. Consider your state’s insurance laws
In most U.S. states, car insurance works on an at-fault system, where drivers who cause an accident are financially responsible, and their insurance policy pays for damage. In a handful of states, car insurance works on a no-fault system, where a driver uses their own insurance policy to cover damages, regardless of fault.
If the accident occurred in a state that recognizes fault and the at-fault driver is uninsured or underinsured, you’ll need to file a lawsuit to get compensated for the damages to your car and your medical bills. On the plus side, when you pursue a lawsuit, you have a greater chance of recovering a higher amount of compensation that includes non-economic damages insurance companies ignore, like pain and suffering and loss of enjoyment of life, among others.
3. Notify your insurance company right away
If you haven’t already reported the accident to your insurance company, that should be at the top of your to-do list. Even though the other driver is uninsured or underinsured, reporting the accident is still a requirement. When you do, be prepared to provide your insurance company with all the information and evidence you gathered, as well as any other information they request.
If you have uninsured motorist coverage (UIM) with your policy, talk to your insurance agent to better understand your policy’s provisions and limits. If you have coverage, it may help, but there’s a possibility it won’t be enough. UIM coverage typically only applies to medical bills and won’t cover physical damage to your car.
Before accepting any kind of payout from your insurance company, speak with a car accident attorney to ensure you make the right choice. Once you accept any kind of settlement offer from an insurance company, you’ll lose the right to sue. If you accept a small payout from your policy and it’s not enough to cover your medical bills, you won’t be able to sue for more. In either case, a lawyer can negotiate with your insurance company on your behalf to maximize your payout.
4. Prepare to negotiate
When filing a claim through your insurance policy, be prepared to negotiate a settlement amount with the insurance adjuster. Keep in mind that adjusters are given a maximum value for every case, and they are required to negotiate within that boundary. While it’s possible to get the maximum payout set for your case, their job is to pay out as little as possible. To get a decent settlement, you’ll need to go through several rounds of negotiation.
5. Be prepared for possible collection issues
If you do file a lawsuit against the at-fault driver, even if you win, there’s a chance you might struggle to collect compensation. Getting a judgment is just half the battle. Collecting can be difficult when the other person doesn’t have the income or assets to cover the judgment.
In that case, you can go through another process to get a lien on their assets, like real estate property or a bank account. This is why a lawyer may advise you to take the payout offered by your insurance company, but it all depends on your individual circumstances.
Stay the course to get compensation
Dealing with an accident caused by an uninsured driver requires prompt action and attention to detail. By documenting the scene, reporting the accident, and talking to an attorney, you can protect yourself while working toward a resolution that gets you adequately compensated for your injuries.
