Getting into a collision with a driver who doesn’t have car insurance is more common than you’d think. Insurance claims work differently when an uninsured driver causes a crash. Not understanding your insurance policy coverage may surprise you about who pays for damages and lost time.
Without the right type of coverage, you could be forced to pay out of pocket for an accident you didn’t cause. The good news is that most insurance policies include (or offer) uninsured motorist (UM) coverage. Uninsured motorist insurance coverage covers medical payments, collision repairs, and may cover loss of income (up to policy limits) when an at‑fault driver doesn’t have insurance.
Knowing how these coverages work, what to do at the scene of the accident, and how to file a claim can help you avoid delays, as well as legal and financial headaches. Follow along as an insurance expert and an injury lawyer explain what can happen when you’re hit by someone without car insurance and how to ensure you’re financially protected when the other driver can’t pay following a crash.
How Common Are Uninsured Drivers?
According to a 2023 report by the Insurance Research Council (IRC), more than one in seven drivers nationwide (15.4 percent) were uninsured. Other data by the IRC shows that in the U.S, “one in three drivers are either uninsured or underinsured,” a staggering ten percentage point increase since 2017.
Melanie Musson, auto industry expert at Clearsurance.com added, “In some areas, uninsured drivers make up a quarter of all drivers.” Considering those statistics, “How many uninsured motorists do you think you pass on a trip to the grocery store?” she asked.
What Happens Immediately After the Accident?
First, determine if anyone requires medical attention. Then call law enforcement. Getting law enforcement involved ensures that an official record of the accident is filed, especially if one of the drivers lacks insurance. “All involved parties need to exchange information —driver’s licenses, license plate numbers and names on the registration, and insurance information, even if the other party doesn’t have insurance,” said Musson.
Carefully and methodically document the accident scene [photos, location, time of day, weather conditions, names of any witnesses if they come forward] and “contact your insurance company right away, they can help you understand your next steps,” said Chad Watwood, Attorney at LawBike Motorcycle Injury Lawyers. Then, request a copy of the police report. It will indicate whether the at-fault driver has insurance coverage. Depending on the jurisdiction, “the uninsured driver will likely be cited,” said Watwood.
Who Pays for the Damage?
Even if the at-fault driver doesn’t have insurance, “They should still pay for the damages,” said Munson. Your own insurance policy will pay for damages, assuming you have Uninsured Motorist and Underinsured Motorist (UIM) Insurance. Uninsured Motorist and Uninsured Motorist Bodily Injury (UM‑BI) Insurance (usually packaged together) is mandatory or strongly recommended by every state and normally covers:
- Medical bills.
- Lost wages.
- Pain and suffering.
- Long‑term disability.
- Funeral expenses.
Uninsured Motorist Property Damage (UM‑PD) covers your vehicle’s damage if the at-fault driver is uninsured and unable to pay for repairs. UM‑PD is not available in all states. Some states require you to carry collision insurance, and that will cover the repairs to your car, less your deductible.
Your UIM-BI and UM-PD coverage fills the “gap” between what the other driver’s insurance will pay and the actual cost of damages. “UIM-BI and UM-PD usually cover medical payments, collision repairs or even health insurance,” said Watwood. That’s why it’s critical you check, read and understand your automobile insurance policy, including coverage limits.
Can You Sue an Uninsured Driver?
You can absolutely sue. However, both Musson and Watwood agree, it’s usually not worth it. “Uninsured drivers often have little or no assets, so collecting money for damages becomes difficult,” said Musson. Watwood added, “It depends on the assets or income that the person [you are suing] possesses. If they have no assets, any settlement probably won’t be much [financial compensation].” It’s better and less stressful to have uninsured motorist coverage.
Do State Lines Matter?
Yes. “State lines impact insurance requirements, as well as the UM/UIM structure,” said Watwood. If a crash happens in another state, that state’s rules often govern fault and claims.
Here’s an example. “If you have minimum liability coverage in your state but cause an accident in a different state that has higher minimum requirements, your policy automatically adjusts to meet that state’s minimum requirements, and cover [if necessary] the higher limits required in the state where the accident happened,” said Musson.
In addition, some states mandate Personal Injury Protection (PIP) coverage. Also known as “no-fault” insurance, you don’t have to prove fault to get benefits. Devised to speed up medical treatment and reduce lawsuits, your auto insurance coverage pays for your injuries and certain other expenses after a crash, no matter who caused the accident.
FAQ
Is car insurance required everywhere in the United States?
“Most states and their jurisdictions mandate liability insurance, or some financial responsibility bonds,” said Watwood. Musson pointed out, “Interestingly, in New Hampshire, where car insurance is not required, the rate of uninsured drivers is lower than the US average.” (New Hampshire law does require residents to show proof of financial responsibility if you’re liable for someone else’s injuries or damages, however.)
So, even when it’s not required, the vast majority of drivers choose insurance because it provides such valuable protection. Up until 2024, you could legally operate a vehicle in Virginia without auto insurance by paying an annual $500 uninsured motor vehicle fee. Now, when you apply for or renew your vehicle registration, you are obliged to show your vehicle has minimum liability insurance coverage.
In my state of Pennsylvania, you must carry $5,000 in no-fault medical coverage and show your PA Financial Responsibility Identification Card before your vehicle can be state safety-inspected and emissions-tested.
What are minimum coverage limits?
Minimum limits of liability are the lowest amounts of coverage a driver needs under state law, and each state is different. For example, New Hampshire’s UM/UIM bodily injury auto insurance minimum is $25,000 per person and $50,000 per accident, while medical payment coverage is $1,000 per accident. Virginia’s UM/UIM bodily injury minimum amount is the same as New Hampshire’s, yet it has no requirement for medical payment coverage. Pennsylvania, a no-fault state, requires a minimum of $15,00 per person and $30,000 of bodily injury liability coverage, First-Party Benefits (your medical costs due to an accident, regardless of who’s at fault) of $5,000 and UM/UIM bodily injury amount of $15,000.
Experts
- Charles (Chuck) Watwood Jr. founded Lawbike Motorcycle Injury Lawyers in 1996 after graduating from Atlanta’s John Marshall Law School. (Email interview Feb 19, 2026.)
- Melanie Musson, a published insurance and finance expert, is the fourth generation in her family to work in the insurance industry. Over the past two decades, Melanie has gained in-depth knowledge of and specializes in state-specific insurance laws and how insurance fits into every person’s life, from budgets to coverage levels at Clearsurance. (Email interview Feb 20, 2026.)
Resources
- Insurance Research Council: “One in Three Drivers are Either Uninsured or Underinsured in the U.S, Exposing Themselves and Other Drivers to Significant Financial Risk, New IRC Study Shows”
- Kelly Blue Book: “In Some States, 1 in 5 Drivers Are Uninsured”
- LegalClarity: “Are You Required to Have Car Insurance in Virginia?”
- National Association of Insurance Commissioners: “Auto Insurance”
- Insurance Research Council: “One in Eight Drivers Uninsured”
- Insurance Information Institute: “Facts and Statistics: Uninsured motorists”
- Progressive: “At-Fault vs. No-Fault Accidents”
- Progressive: “Car insurance requirements by state”
Related
- Do You Know What That Little Button on Your Seat Belt Is For?
- What Those Lines on Your Backup Camera Really Tell You
- Here’s What The Small Panel On Your Car’s Front Bumper Is For
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