In almost all states, car insurance is mandatory to protect drivers in the event of an accident. However, the Insurance Research Council estimates that 1 in 8 drivers are uninsured. If you are involved in an accident and don’t have insurance, it can lead to many consequences. The penalties for driving without car insurance vary from state to state, but you may be subject to expensive fines, face suspension or loss of your license, or pay out-of-pocket costs related to accident expenses.
That’s why you should collaborate with a respected broker to find the optimal car insurance policy. Brokers possess extensive knowledge of the insurance industry, allowing them to guide drivers through the intricacies of diverse policies. If you’re unsure of how to identify a reputable broker, start your search locally and thoroughly evaluate online reviews to ensure they’re trustworthy and credible. For instance, if you happen to live in Toronto, Canada, research the best brokerage specializing in car insurance in Toronto to help you find suitable coverage for your needs and budget.
But what do you need to do if you get in a car accident but don’t have insurance? Here’s everything you need to know about driving uninsured, and why you need to obtain car insurance as soon as possible.
What to Do If You Are Not Insured and Involved in A Car Accident?
Stop and remain at the scene of an accident until you have taken appropriate action. Driving without insurance can have serious consequences, but they pale in comparison with the penalties you could face if you leave the car crash scene. This includes criminal charges for hit and runs. here are some important steps you can take:
- Find out if anyone is seriously injured, and call emergency medical services.
- Call the local law enforcement.
- Exchange information with everyone involved in the accident.
- Watch what you say when you’re at the scene of a car accident. Do not admit to fault and do not discuss the details of the accident.
- You can also get the contact details of any witnesses that may have seen what happened.
- Take photos of the accident site, the position, and the vehicles involved, as well as anything else you think might be useful in describing how the accident occurred.
What Will Happen if You’re Involved in an Accident and Don’t Have Car Insurance?
If you get involved in an accident and don’t have insurance, then you’re in big trouble. You’ll have to pay for any damages done to your car and other vehicles involved in the collision, even if it was not your fault.
This is the best-case scenario. Car accidents can cause serious injuries or even death. Medical rehabilitation costs for those injured in accidents can be expensive, and the injuries they suffer may even be life-changing.
You could be facing expensive lawsuits if you drive without insurance. You may be sued by the injured parties and their insurers to recover their legal costs and financial losses. These costs can reach hundreds of thousands of dollars and without insurance, you might be forced to declare bankruptcy.
Also, if you’re uninsured, and you get hurt in an accident that wasn’t your fault, you can’t sue the driver at fault for damages. This means that you’ll have to pay for the rehabilitation and medical costs yourself.
What Will Happen if an Uninsured Motorist Causes an Accident?
You don’t need to worry if you collide with a motorist who is not insured but you have insurance. For instance, uninsured auto insurance is one of the standard coverages included in a Canadian car insurance policy. This coverage protects you against this situation but has a cap of $200,000 in damage to your car minus the deductible. You can, however, increase the coverage limit.
Uninsured auto insurance will also protect you if you’re in an accident involving a hit-and-run driver. Your insurance will cover the cost of the damages to your car, the injuries you may have suffered, and other expenses related to the claim.
However, if you have collision or upset coverage, it will pay up to your liability limit. Although collision coverage will pay for damages to your vehicle when you are at fault for an accident, most insurance providers also cover repairs for your car if it is damaged by an uninsured motorist.
Final Thoughts
Getting involved in a car accident with no insurance can be a frightening and overwhelming experience. Not only are you dealing with the physical and emotional trauma of the accident itself, but you may also be facing financial losses due to medical bills, or other costs associated with the incident.
By understanding the potential consequences of being in a car accident without insurance, you’ll realize the necessity of protecting yourself with the right car insurance coverage.