Hit By An Uninsured Driver? Here's How To Handle The Fallout

In the average auto accident, the script is usually the same: make sure you're not hurt, make sure your passengers aren't hurt, call the police, call your insurer and exchange information. At least that's how it should be. Unfortunately, you discover that the other driver has no insurance info to exchange – and it's not because he or she left their insurance cards at home.

According to a recent study by the Insurance Research Council, nearly one in eight drivers in the U.S. was uninsured. Nearly every state requires drivers to carry some form of auto insurance, but many drivers often go without coverage due to excessive costs or prior circumstances that make it difficult to get coverage. So what should you do if the other driver involved in the accident is uninsured?

How Insurance Companies Handle Accidents with Uninsured Motorists

With accidents involving uninsured motorists, there's no other party for your insurance company to deal with, save for the driver. If the driver lacks insurance, then chances are the driver also lacks the financial ability to bear the costs of the accident, leaving your insurer to take up the slack in terms of compensation.

For this reason, many states require or encourage drivers to purchase uninsured and/or underinsured motorist coverage. This coverage comes into play when the driver lacks insurance or doesn't have enough coverage to handle your damages. In many cases, you may be able to file a simple claim and receive full compensation for an accident with no issues. In others, the insurance company may require you to file a lawsuit against the uninsured driver and attempt to recover damages that way before your insurer provides compensation.

Handling Uninsured Drivers in No-Fault States

In states with no-fault liability laws, drivers must seek damages from their own insurers regardless of fault. No-fault laws also restrict your ability to sue the other driver for damages. These laws were intended to help reduce expensive litigation and make it easier for drivers to recover due compensation for injuries and losses. Of course, uninsured drivers don't have an insurance policy to turn to.

There are a couple of common exceptions to no-fault liability laws:

• If you've or your passengers suffered severe injuries during the accident, you may be entitled to sue the other driver for damages.
• No-fault liability laws only cover bodily injury. Uninsured drivers can still be sued to recover damages caused to your vehicle.

What You Should Do

If you ever find yourself in an accident with an uninsured driver, here's what you should do immediately after the accident occurs:

• Contact the police. You'll want to have an official police report of the accident in question. Such reports carry tremendous weight in the eyes of the courts and insurance companies. This step is also critical for helping victims receive prompt treatment for bodily injuries.
• Get contact information from the other driver. Even if the other driver doesn't have insurance, you'll still need their name, phone number, e-mail address and other contact information.
• Contact your insurance company. You'll need to inform your insurer of the accident, the circumstances surrounding it and the contact information of the other driver.
• Take plenty of photographic evidence. Do your best to leave the vehicle exactly where it is and take pictures of the accident as it occurred.
• Seek legal counsel. It's important to talk to an attorney experienced in handling uninsured motorist accidents, if only to find out what your post-accident options are. If you're seriously injured, then you may need the help of a personal injury attorney in order to move forward.

Unfortunately, the occasional uninsured motorist may decide to escape their financial and civil responsibility by fleeing the scene of the accident. Keep in mind that certain states may not allow you to use your uninsured motorist coverage in the event of a hit-and-run collision. Instead, you'll have to use your collision coverage to take care of the damages.

Recovering damages from an uninsured driver can be a long and sometimes frustrating process. This is especially true if the driver in question is "judgment proof," meaning they have little to no assets that could be used to help settle a judgment in your favor. Having uninsured motorist coverage can help soften the blow somewhat, but it'll be ultimately up to you to pursue and collect damages from uninsured drivers with the help of your personal injury attorney.