The legal system is designed to restore a plaintiff (accident victim) to the financial condition they were in before an accident or injury occurred.
In theory, if you were injured or experienced a loss of property as a result of someone else’s negligence, you should be able to recover the amount you need to cover your expenses. When the accident is a motor vehicle collision, the at-fault party’s insurance should cover your costs.
But what if the other driver was uninsured?
The process becomes more complicated if the at-fault driver didn’t have insurance. Or, they might have some insurance, but a basic liability plan might not include sufficient coverage for your losses.
Uninsured (UM) or underinsured (UIM) motorist insurance coverage
Uninsured and underinsured motorist coverages are policy add-ons that you can choose when you purchase insurance. If you’ve included uninsured or underinsured motorist coverage, your insurance will pay the claim after a collision with an uninsured driver.
If you don’t have uninsured motorist coverage on your own insurance policy, you cannot make a claim or recover damages against an uninsured driver.
When you’ve been in an accident, it’s important to file a report to your insurance company right away. A report is not the same as a claim. It’s important to gather evidence, get a police report, and call your insurance company even if the other driver tells you right away that they don’t have insurance.
If they truly are uninsured, your insurance company can’t file a claim against them — like the saying goes, you can’t squeeze water from a stone. Insurance companies work by filing claims against other insurance companies, so if there isn’t one, there’s literally no way for the insurance company to recover damages.
Or is there?
In other words, it might sue the other driver or make a claim against their insurance company (if they had some insurance, but not enough).
Fortunately, that’s between your insurance company and the other driver’s, and it doesn’t affect you.
By the same token, if you don’t have uninsured motorist insurance, and the at-fault driver doesn’t have insurance, you only have one option: to file a personal injury claim against the driver.
Filing an uninsured motorist claim
Notify your insurance company right away if you’re planning to file an uninsured motorist claim.
Some insurance policies have strict deadlines and won’t cover you if you don’t notify in time. If you believe that the other driver is uninsured, or if they won’t provide insurance information at the time of the accident, call your insurance company immediately.
In a situation where the other driver is insured, your insurance company makes a claim on your behalf against their insurance company. But in this situation, YOU are making a claim against your own insurance company. That’s an important distinction because it affects how things are handled if the settlement offer isn’t satisfactory.
If your insurance company is representing you against another insurance company, the 2 companies will negotiate with one another to reach a settlement. If the settlement isn’t what you believe you deserve, and if you can’t reach resolution on appeal, you’d hire a personal injury lawyer to file a lawsuit.
It’s slightly different if you can’t reach agreement in an uninsured motorist claim against your own insurance company. In that situation, you’d go to binding arbitration. Arbitration is less formal than litigation, but “binding” arbitration means you need to stick with the outcome.
In this scenario, both parties would appear for a hearing before an arbitrator or panel of arbitrators who act like judges. Each party would present their arguments and the arbitrator would make a decision.
When to file a personal injury lawsuit against an uninsured driver
If the world (and the legal system) worked perfectly, here’s how a legal proceeding would play out after an accident.
But the reality is that the aftermath of an accident is rarely this easy to navigate.
First, if there are questions about who was at fault, or if you share liability, that’s going to affect how you proceed.
Second, even if you’re certain the other driver was 100% at fault, there’s still a question of whether they have the assets to pay a judgment for damages if your claim is successful.
We can’t generalize that every uninsured driver has no assets, but if they’re driving a car without insurance, the reality is that they might not have the money to pay a personal injury judgment.
If you’re granted a judgment against a defendant who has no assets, they might declare bankruptcy. Bankruptcy means they’re no longer responsible for paying the judgment, and you won’t recover any compensation.
However, there are good reasons to file a personal injury lawsuit.
For example, say the cost of your injuries came to $400,000. If your uninsured motorist coverage maximum is $200,000, you might be able to recover the remaining $200,000 through a personal injury lawsuit.
What if you don’t have uninsured motorist insurance AND the other driver has no money to pay a judgment?
This is a good reason why you should get uninsured motorist coverage.
When you’re in an accident with an uninsured driver, you have two options:
- File a legal claim (i.e. personal injury lawsuit) against the driver
- Claim uninsured motorist benefits from your own insurance company
If you don’t have coverage, a lawsuit is your only option.
If the driver doesn’t have money to pay a judgment, you’re probably never going to see any of the money. That’s why uninsured motorist coverage is your best bet to receive any compensation following an accident with an uninsured driver.
What to do if the defendant doesn’t pay damages
If you win a judgment against a defendant who can’t or won’t pay, you can return to court and apply for an order that requires payment. However, the court might not require payment when it’s aware that the defendant legitimately has no money to pay.
But there are 2 ways to recover money from a defendant who won’t pay a judgment:
- Lien on property. If your lawyer learns that the defendant owns some assets, they can file a lien against the defendant’s property so the assets are frozen (i.e. can’t be sold or spent) during the course of the lawsuit. Once a judgment is filed, the defendant isn’t required to sell their property immediately. When they do sell the property, though, you’d be paid out of their proceeds from the sale.
- Payment plan. If the defendant has some money but not enough to pay the judgment immediately, the court could set up a payment plan so the defendant pays you a small amount per week or per month.
Should you file a personal injury lawsuit against an uninsured driver?
Like many aspects of the law, it depends.
Primarily, it depends on the uninsured driver’s ability to pay. Your personal injury lawyer can advise you about whether the defendant has assets that would cover your injuries, either partially or wholly. But, the best-case scenario is still to use your own uninsured motorist insurance as your first resource for compensation against an uninsured motorist.
A lawsuit is meant to make the plaintiff “whole” — in other words, the purpose is to restore you to the condition you were in before the accident. Most personal injury lawyers work on a contingency basis, which means they don’t get paid until you recover damages. When you recover, they receive a percentage of those damages.
But money isn’t the last deciding factor. A lawsuit requires time and could be stressful for all parties involved. A lawyer likely won’t take a case to court unless they believe they have at least a 50/50 chance of winning. So even if you “win,” you haven’t really won anything if the defendant can’t pay your damages.
You might have to pay court costs, fees for expert witnesses, administrative costs for your lawyer to do asset checks or background checks on the defendant, or other legal expenses. If the defendant can’t pay for the damages, you’ll have lost all of the money you spent on a lawsuit.
Is it worth it?
You can ask a lawyer. Begin by using the Enjuris Personal Injury Law Firm Directory to find a lawyer in your area who can advise you of how to proceed to receive recovery damages.
P wolf says
I was a passage . The person driving me.ran into a car . .that was parked in the lane we were traveling in .the driver of that car had just caused.a two car collision. .my driver tryed. To go around the wrecked .well he should have stopped.but instead .our.his the car I was sound asleep in chipped the other car .and I woke up screaming .with all that said .I have sufficient facial scars.along with other conditions.. Driver #1 had minimum coverage .and did my driver. But driver #1 doesn’t make it .. but he caused the initial wreck …and my life will never be the same.i didn’t get a good amount . I Know that the amount hardly.coverd the medical bills.and I was basically forced to sign the agreement.iwas told that because it was going on two years I had to take the offer or I would lose everything. I am Left with massive amounts of fear and lack of confidence and consortium.along with missing teeth and an eye take didn’t heal properly.along with other aliments. I am trying to see if someone can help me out with the lost of my way of life .I don’t know how it works.can any one point my in the right direction.
Ian Pisarcik says
I’m so sorry this happened to you.
If you feel that the insurer forced to sign an agreement, you should consult an attorney to see what legal options you may have. Most attorneys will provide free initial consultations. You can find an attorney using our free online directory.
It’s also important to find a motor vehicle support group in your area. Support groups are an invaluable resource in helping you get through these difficult times.
V says
From West
If my uninsured policy pays for damages to my car can I still sue the uninsured driver for hitting my parked vehicle no injuries
Ian Pisarcik says
Generally speaking, you can sue the at-fault driver for any damages suffered that your insurance policy did NOT cover. For example, if you incurred $20,000 in damages and your uninsured policy covered $15,000, then you could sue the at-fault driver for $5,000.
Krystal says
From Alabama
My uncle was involved in a car accident that ultimately resulted in his death. The other driver was ruled at fault so her insurance paid off the car and offered the small limits under the underinsured portion of her policy. His insurance company turned around and also paid the underinsured portion under his own policy. 1). Is this considered a settlement? If not, can we still file a lawsuit? 2) Does my aunt get it all?
Ian Pisarcik says
In wrongful death cases, it’s common for an insurance company to pay the policy limits. So long as the innocent party doesn’t sign a “settlement and release,” they can usually sue the at-fault party for the damages owed above the policy limits.
The best thing for you to do is meet with a personal injury attorney in your area. Bring all the paperwork related to the insurance claim. The attorney will be able to review the documents and tell you whether you can still pursue a claim against the at-fault party. In most cases, the attorney will do this for free.
Leigh Ann Wonders says
From Washington
An uninsured driver rear ended my car and it was a total loss. My insurance company and gap coverage didn’t cover all costs I was still owing $3000 to the bank. Can I sue uninsured driver for the $3000 not covered by my insurance?
Ian Pisarcik says
Yes you can. Unfortunately, uninsured drivers often don’t have the money to pay a judgment. Nevertheless, you can sue the driver and attempt to collect the judgment.
Leigh Ann Wonders says
From Washington
An uninsured driver rear ended my car and it was a total loss. My insurance company and gap coverage didn’t cover all costs I was still owing $3000 to the bank. Can I sue uninsured driver for the $3000 not covered by my insurance? Please let me know your opinion
Ian Pisarcik says
Thanks for the questions.
Yes, you can certainly sue the uninsured driver for the damages not covered by your insurance policy. Unfortunately, uninsured drivers often don’t have the money to pay a judgment. Nevertheless, there are some collection methods that an attorney can employ (such as wage garnishment) if you’re able to obtain a judgment.
Riley says
From Texas
Is it worth it to sue an uninsured driver for my $500 deductible? I was not happy about having to spend the money for something that wasn’t my fault and would like my money back. My insurance used my collision part of my policy until they can confirm that she didn’t have insurance…which I know she didn’t because all she had was a bunch of expired policy documents. My insurance company is also very slow and unresponsive. I just want my money back. I’m thinking of contacting the driver myself to see if she is willing to pay before trying to sue.
Ian Pisarcik says
Your best option is to try to reach a private settlement with the driver.
The unfortunate reality is that most uninsured drivers don’t have the money to pay a judgment. This means that, even if you obtain a judgment in small claims court (which will take time and require that you pay a filing fee), you may not be able to actually recover the $500 from the uninsured driver. There are procedures for obtaining judgments (such as recovering assets and garnishing wages), but those procedures also take time and cost money. Therefore, practically speaking, your best bet is probably to settle with the uninsured driver for any amount she’s willing to pay you.
Therri J. says
From Ohio
I was rear ended in an auto accident last week. The driver said she didn’t have her insurance info with her at the scene. We exchanged our names and phone numbers but I didn’t get her license plate. The driver said she would pay for the damages done to my car when I got an estimate. The police were not called to the scene but I did go to the police station to make a report. Apparently, the police have been unable to locate the driver. I have damage to the rear passenger side of my car as well as injuries. I do have uninsured motorist with bodily injury coverage on my policy. If the police are unable to get the at-fault driver’s info will my insurance company cover my auto repairs and medical bills without a police report?
Ian Pisarcik says
Your insurance company will conduct a brief investigation (which may be as simple as talking to you about the accident). Assuming the insurance company doesn’t have reason to believe that your story is untrue, they will cover your auto repairs and medical expenses up to the policy limits. Your insurance may also attempt to track down the at-fault driver. It would be wise to take photographs of your vehicle an write down your version of events while they are fresh in your mind.
Manuel says
From California
I was t-boned while making a turn at a signal. I suffered a traumatic brain injury and fractured lumbar. I was found unconscious at the scene and was in a coma for 5 days. The driver at fault gave the police a false insurance policy number and I later found out from my insurance that he had no insurance. I didn’t have uninsured motorist insurance, so it was considered a total loss for all my medical bills and vehicle. Hospital bill came out to about $250,000.
I’m not really sure if there is much I can do or if I can sue him personally?
Any advice on my next best step would be appreciated.
Ian Pisarcik says
Manuel,
You can certainly sue the driver personally in this situation.
The problem with suing an uninsured driver is that they often don’t have the money to pay a judgment. Nevertheless, your lawyer will be able to review the at-fault driver’s financial situation before filing lawsuit to determine if it’s worthwhile.
I would absolutely recommend sitting down with a personal injury lawyer to discuss your case. Most initial consultations are free. You can locate a license attorney using our free online directory.
Felix says
From Texas
My mom was hit by an unisured motorist. They left the scene but she got the license plate number and called the police. We have the police report that shows the other driver was at fault. She was not injured and the car is still drivable. How can i take them to court to pay for the damages that the car has even though the accendant wasn’t serious? I don’t feel is worth getting a lawyer so How do I go about doing it on my own?
Ian Pisarcik says
If there are minor damages and you want to sue the driver without an attorney, your best option is to sue the other driver in small claims court. Small claims courts are informal and inexpensive. To sue someone in small claims court, the damages (the amount you’re trying to recover) must be less than $20,000. Here is a helpful resource published by the Texas State Law Library, which includes information about how to file a lawsuit in small claims court.
Mermaid says
From Michigan
My neighbor backed into my brand new car. I noticed the damages the next morning, not knowing who exactly hit my car in my driveway, we share a driveway. She then 2 days later came and admitted to me that she backed into my car. And went up to my house and admitted that as well to my boyfriend verbally. She verbally said she would pay for damages. She was uninsured at time of accident. I have text messages between her and I and her and her boyfriend admitting that they(she) will pay once I get them an invoice of the damages. Now they are saying they never hit my car when I have text message proof of them agreeing to pay damages and that she did hit my car. What do I do.
Ian Pisarcik says
You have a couple of options. You can file a claim with your insurance company. Be sure to provide your insurance company with the text messages so they can then go after your neighbor for reimbursement. Alternatively, you can file a personal injury lawsuit against your neighbors. This can be filed in small claims court (if the damages are less than $6,000),district court (if the damages are less than $25,000), or circuit court (if the damages are more than $25,000).
If you need help finding an attorney, you can use our free online directory. Be sure to save the text messages, as those will be a key piece of evidence.
Peyton says
From Mississippi
I was driving someone else’s vehicle while uninsured and I was t boned at an intersection by an insured driver and ruled at fault. Now I am being sued by other drivers insurance company but I do not have money or assets to pay. What are my options?
Ian Pisarcik says
Peyton,
Car insurance typically follows the car and not the driver. In other words, if the car was insured, your claim may be covered even though you personally did not have insurance. As a result, the first thing you should do is contact your friend’s insurance company (assuming they’re insured).
If there’s no insurance to pay the claim, the court will issue a judgment against you. Because you have no money or assets, the plaintiff may attempt to garnish your wages (i.e., take a certain percentage of your current or future paychecks until the judgment is satisfied).
Becky says
From Texas
I let my daughter drive my uninsured vehicle. My daughter hit another vehicle and left the scene. I didn’t know she did this until a letter was received in the mail from the county, about the accident. Who is responsible, and what should be expected?
Ian Pisarcik says
Your daughter was legally obligated to stop at the scene of the accident. However, just because she failed to do so doesn’t mean she is liable for the accident.
If the other vehicle was damaged and your daughter was at fault, you can expect to be contacted by the other driver’s insurance company or you can expect to receive notice of a personal injury lawsuit. Either way, because the vehicle was uninsured, your daughter will be personally liable for the damages if she was at fault.
John Suarez says
From Florida
la persona que me choco tiene seguro pero no tiene ninguna cobertura ni de lessiones ni de danos del vehiculo y aparte hubo otro vehiculo involucrado en ese mismo accidente. el total fueron tres. vehiculos incluyendo el de la persona responsable y tan bien esa persona que fue culpable tenia el mismo seguro que yo los cuales enviaron la una carta negando el pago de los danos y de las lesiones personales que puedo hacer al respecto?
Melissa Gold says
Hola. Parece que usted le dio permiso a alguien para conducir su automóvil y se vio involucrado en un accidente.
Por lo general, el seguro cubre al vehículo (no al conductor), excepto en algunas situaciones específicas. La forma en que la compañía de seguros maneja la culpabilidad dependerá de si usted está en un estado de culpa o no culpa. Parece que esto es complicado porque hay varios autos y personas involucradas. Es posible que desee comunicarse con un abogado de lesiones personales para obtener ayuda según los hechos específicos y las leyes de seguros de su estado.
También es importante tener en cuenta que no es necesario que se comunique con la compañía de seguros si no está satisfecho con el acuerdo que ofrece. Incluso si es su propia compañía de seguros, ellos no siempre toman en cuenta sus mejores intereses. El trabajo de su abogado será trabajar con la compañía de seguros en su nombre, lo cual es especialmente necesario si ambas partes tienen la misma compañía de seguros.
No dude en utilizar el directorio de bufetes de abogados de lesiones personales de Enjuris para encontrar un abogado cerca de usted que pueda ayudarle. ¡Buena suerte!
Brianna says
From Michigan
My kids dad was driving my car he hit someone car that wasn’t parked right the other guy car had 2 dents they settled it with each other exchange numbers. But few days later the police came to my house I don’t have insurance on my car so the other guy insurance company said I’m obligated to pay because the car is in my name so my question is what happened if I don’t pay this money they said it cost them to fix the other guy car?
Ian Pisarcik says
Generally speaking, if you lend your uninsured car to someone and they have insurance, than their insurance will cover the accident. Accordingly, I would check with your kid’s dad’s insurance policy to see if the accident is covered.
If your kid’s dad is uninsured, than the injured driver (or their insurance company) could sue you for the damages. If a judgment is entered against you and you don’t pay, the injured driver could garnish a percentage of your future wages. The best thing to do in that situation is work out a payment plan with the injured driver.
Guenson Pierre-Toussaint says
From Pennsylvania
My car is still financed, I got into a car accident the person was making an illegal right turn. this happened 04/16/21 we called the police got the report. He doesn’t have any insurance I think it lapsed according to the officers words, his car got impounded my car looks as if it’s a total loss side airbags deployed and left side bumper is WRECKED… but I myself don’t have any insurance either.. he was at fault how can I win this situation since his coverage lapsed. Please help
Ian Pisarcik says
Whether or not your insurance lapsed has nothing to do with liability. You can still hold the other driver liable by filing a personal injury lawsuit against him. Whether or not you’ll be able to collect a judgment, however, is another story. I would recommend talking to an attorney about your case. Most initial consultations are free and the attorney will be able to run a background check on the other driver to see if he has any assets you can collect in the event you obtain a judgment against him.
Keep in mind that most auto loans require you to carry insurance. Accordingly, the bank that financed your car loan may require that you pay for the damaged car immediately and may assess penalties.
Sparky48us says
From Colorado
If I had uninsured motors vehicle insurance can I sue an uninsured driver that hit me in small claims court to recover out-of-pocket expenses such as deductibles and rental car?
Ian Pisarcik says
Yes, you can sue in small claims court to recover your deductible. Be sure to wait until your claim is resolved because once you sue the other driver, you won’t be able to sue them again if you later find out that your uninsured motorist coverage didn’t cover as much as you thought it would. You might also want to check with your insurance company to see if they cover rental car costs, as many do.
Luis says
From Washington
Hello, question so I got rear ended by a uninsured person who was driving a car rental. It was his fault because he didn’t break soon enough. The damage to my car was very minimal just paint work. I had to pay $1,000 out of pocket to my insurance. The total the uninsured has to pay is $5,700. The guy doesn’t have money nor any assets. Is it worth it to take him to court? Would I win the settlement?
Ian Pisarcik says
It may be worth taking the uninsured driver to small claims court. Assuming he doesn’t contest liability, you’ll likely receive a judgment against him. At that point, you can try to get him to pay you something. If he refuses, you can garnish a percentage of his wages (assuming he has a job). However, garnishing wages is complicated and requires court orders, so it may be more trouble than it’s worth.
Jill says
From Arizona
I was waiting for a parking spot (in the aisle) of a grocery store parking lot and someone backed into my car. It turns out that that driver doesn’t have insurance. I’m worried about having to pay the $500 deductible if I decide to get my car repaired. My insurance company said that they can put pressure on the other driver to pay by saying that they’d send it to a collections agency, but also said that most drivers who are uninsured choose not to pay regardless of the threat of collections. Can I contact the person who hit me directly if that happens? What is the best way to proceed.
Ian Pisarcik says
You certainly have the right to contact the at-fault driver directly if they don’t pay, but doing so is unlikely to result in anything positive. If the uninsured driver has any money at all, your best option is to file a lawsuit against them in small claims court.
Victor says
From Colorado
Hello,
My wife was involved in a car accident. She was at fault but listed as an excluded driver under our insurance. The car is under both of our names. Can the other driver or insurance sue me? Also, is an LLC something the insurance or other driver can take from to recover the costs?
Thanks,
Victor
Ian Pisarcik says
I’m sorry to hear about this.
The other driver can sue both you and your wife personally. Your wife can be sued for negligence. You may be sued for negligent entrustment. What’s more, depending on how your finances are organized, a judgment against your wife may be satisfied using funds from a shared account.
Finally, your LLC probably can’t be used to satisfy a judgment in this situation.
Jim Williams says
From West
Hello,
I was in a car accident in 2007 that was my fault and I did not have insurance. Just a few weeks ago I found out, because of a hold on my license, that I was sued in 2011 by State Farm Insurance for $408,000 as a result of the accident. I don’t understand how there can be a judgment against me without me even knowing about it, and for that much, and what, if anything, I can do about it. Thank you for any reply.
Ian Pisarcik says
A court will issue a judgment without your knowledge if you were served with a summons and complaint but failed to appear for your hearing. Keep in mind that it’s possible the plaintiff could not find your address and therefore “served” you via publication (i.e., publishing the summons in the paper of the county in which you last resided).
If you believe you owe the $408,000, State Farm will almost certainly be happy to workout a reasonable payment plan with you. If you don’t believe you owe the $408,000, you should meet with a lawyer in your area to see if you have any legal options.
Jason says
From West
Hello,
I was charged with a DUI from a car accident where I had no insurance and was sued by another insurance company. Can I file bankruptcy to take care of it? Thank you
Ian Pisarcik says
In the vast majority of cases a judgment that results from a DUI accident CANNOT be discharged in bankruptcy. Nevertheless, it’s a good idea to talk to a bankruptcy attorney to review your legal options.
Eugene Fuller says
From Michigan
I was stopped with my blinker on to pull into my driveway. The vehicle behind me did not notice me stopped, and slammed into the rear of my car causing me to slam into the oncoming vehicle with whom I had been stopped waiting on to turn. I was uninsured. My car was totaled. I was not ticketed by the police officer for not having insurance. Now, one of the insured drivers insurance company is calling and wanting to talk to me. My question is, should I return the insurance companies phone calls. I never attempted to seek any damages done by the at fault driver. If I was uninsured, and did not get ticketed at the time of the accident, can the insured drivers insurance still come after me (I forgot to mention) even though I received no tickets in the accidents. ,
Melissa Gold says
Hi, Eugene. I am sorry to hear that you’re in this situation. Not receiving a ticket for being uninsured means you likely won’t face traffic court or driver’s license-related penalties. However, that is unrelated to your liability issue. If you were at fault for part of the accident, another driver could sue you for their damages because you don’t have an insurance policy to cover them. If that happens, you would be responsible for paying their costs out of pocket. You are not obligated to talk with the insurance company, but you should find a lawyer to communicate with them on your behalf. You can definitely be held responsible for costs, even without insurance.
Also, you might be “lucky” that the officer didn’t ticket you this time for failure to have insurance, but you might not be as fortunate another time… and there are stiff penalties for this. Please make sure to get insured as soon as possible.
If you need a lawyer to assist with your case, you can use the free Enjuris law firm directory: https://www.enjuris.com/personal-injury-law-firms/. Good luck.