State law requires liability car insurance. With the exception of New Hampshire, practically every state in the United States requires you to obtain auto insurance if you have a vehicle registered in your name. The penalties for failing to do so vary by state but often include fines and penalties that are more expensive than vehicle insurance premiums.
If you have a full coverage auto policy, your insurance may also cover you in other situations, even if you are not at fault. However, according to recent data from the Insurance Research Council, one out of every eight drivers is uninsured, despite state insurance regulations.
Ramifications of Being Uninsured
Driving while uninsured is more than just a violation of the law. It can also have a slew of ramifications, especially if you cause an accident that results in injury or property damage to others. The consequences of being an uninsured motorist vary in severity and may be dependent on where you reside, who was at fault in the accident, and other variables.
What are the ramifications of driving without car insurance? They may include fines, vehicle impoundment, license loss or suspension, and possibly even jail time.
Suppose you drive uninsured and are involved in a car accident. In that case, you may face fines, suspension of your driver’s license or car registration, and increased premiums once you obtain auto insurance.
Each state has its own standards for minimum liability insurance. If you have car insurance and cause the collision, your policy will cover the damages to the other vehicle and its driver and passengers. If you do not have insurance and cause an accident, the other driver and passengers may sue you for compensation.
According to the Insurance Information Institute (III), the following procedures may help guide you through essential decisions you need to make if you’ve been in a car accident, whether you were at fault or not. We’ve outlined how to handle accidents while you’re uninsured and the best practices to follow, providing you the confidence and knowledge to take the appropriate actions in the sad case of the unexpected.
one. Address Injuries at the Scene
If you are hurt, contact 911 or have someone else do it for you. If you are critically hurt, try not to move and wait for help. Check on the other passengers in your automobile if you’re not too hurt to move. If someone is hurt, contact emergency services or encourage a bystander to call for assistance.
Move to the side of the road or a sidewalk if possible. Pull your automobile to the side of the road if it is safe to drive and is causing a hazard where it is. Otherwise, leave it alone and make your way to safety. Lack of insurance should never be an excuse to avoid checking on the well-being of yourself or your passengers, nor should it be an excuse to put off calling emergency services.
two. Exchange Information
Sure, one may or may not have insurance information to give you, but you should still acquire their contact and car information. Don’t forget to gather contact information from any witnesses, since their statements can be useful during the claims process as well.
Obtain the make and model of the vehicle involved, the time and place of the collision, as well as the name and badge number of the officer who responded.
3. Inform Law Enforcement
Calling the police, whether it’s a tiny fender-bender or a catastrophic collision, is crucial — and in certain jurisdictions, it’s legally required. The responding police will complete an accident report and photograph the scene.
According to recommendations by the Insurance Information Institute, if the police are unable to arrive at the scene of the accident, you can travel to the nearest police station and submit a report yourself. If you file a claim with your insurer, they may request a copy of the police report to aid in the claims process.
Four. Get Insured
Depending on the severity of the collision and your insurance company, your auto insurance rates could rise dramatically (50 percent or more in some circumstances). While some insurance companies provide accident forgiveness, which means that your at-fault accident will not result in increased premiums, others may double your rate for the same accident.
According to a Consumer Federation of America research, some firms would even increase rates by 10% or more for incidents that were not your fault. Other policies, on the other hand, only levy a price rise if you are at fault. Even how long an accident affects your premiums varies by state and company.
Surviving a car accident might feel like a win in and of itself. But don’t let your post-crash shock keep you from taking care of business, both at the accident scene and with insurance companies. This is why comparing auto insurance quotes is critical in order to discover the best price (and coverage) for you. Select Quote home insurance can help prevent further risk in the event of another accident, and it is well worth the investment.
Coverage for Uninsured Drivers
You never know when or if you’ll be involved in an accident with an uninsured motorist, and it can happen to anyone and at any time. The good news is that there is a method to be proactive about your protection in the event that you are involved in an accident and do not have auto insurance.