What Happens When an At-Fault Driver Has No Insurance?

What are your options if you are involved in an accident where the responsible driver lacks auto insurance or maintains a limit of liability that cannot fully cover your damages?

First, gather the information you will need to report the accident to your insurance company when it is safe, including contacting the police to create a report your insurer can request.

Uninsured motorist coverage reimburses victims for certain damages from a car accident caused by an uninsured driver. Underinsured motorist coverage helps pay the gap between the at-fault driver’s liability coverage and your damages up to your chosen limit.

In many states — including Connecticut, Maryland, and New Jersey — Uninsured/Underinsured Motorist Coverage is mandatory. In other states — like Ohio and Pennsylvania — it’s optional.

Uninsured/Underinsured Motorist extends coverage to bodily injury and property damage in New Jersey and Maryland but only to bodily injury in Pennsylvania, Connecticut, and Ohio.

When the at-fault driver is uninsured, your insurance company has the right to seek reimbursement through subrogation, where the uninsured driver would be required to make restitution. However, uninsured drivers often lack the financial means to offer compensation. One option for recovering your deductible would be through small claims court, an action you should disclose to your insurer.

Be prepared and review your auto policy for Uninsured Motorist coverage. This protection, optional in some states, may help pay for any medical bills you incur if injured in an accident caused by an uninsured/underinsured driver.