What Happens If the Other Driver Has No Insurance?

The Uninsured Driver Problem

According to the Insurance Research Council, approximately 1 in 8 drivers in the United States is uninsured. In some states, that number is even higher. If you're hit by one of these drivers, you may feel like you have no recourse — but that's not necessarily true. Several avenues may be available to help you recover compensation.

Your Own Uninsured Motorist (UM) Coverage

The most important protection against uninsured drivers is uninsured motorist (UM) coverage on your own auto policy. This coverage steps in to pay for your injuries and sometimes your property damage when the at-fault driver has no insurance. It's required in some states and optional in others.

How UM Coverage Works

When you file a UM claim, your own insurance company essentially steps into the shoes of the at-fault driver's insurer. You must still prove the other driver was at fault, and your claim is subject to your UM policy limits. The process can still involve negotiation — and sometimes litigation — against your own insurer.

Underinsured Motorist (UIM) Coverage

Underinsured motorist coverage applies when the at-fault driver has some insurance, but not enough to cover your damages. If your injuries are severe and the at-fault driver only carries minimum liability limits, UIM coverage can make up the difference — up to your UIM policy limits.

Example Scenario

Suppose the at-fault driver carries $25,000 in liability coverage, but your medical bills alone are $80,000. If you have $100,000 in UIM coverage, your insurer may pay the remaining $55,000 after the at-fault driver's policy is exhausted.

Can You Sue an Uninsured Driver?

Yes — you can file a personal injury lawsuit against an uninsured driver. However, the practical challenge is that many uninsured drivers don't carry insurance because they lack the financial means to pay a judgment. A court judgment against someone with no assets may be difficult to collect. That said, if the driver has wage income, property, or other assets, there may be ways to enforce a judgment.

Hit-and-Run Accidents

If you were hit by a driver who fled the scene, you may still be able to file a UM claim — many states allow UM coverage to apply to hit-and-run accidents. Typically, you must report the accident to police and file a claim within a specified timeframe. Physical contact with the fleeing vehicle is required in some states but not others.

Medical Payments (MedPay) Coverage

If you carry MedPay coverage on your auto policy, it may pay your medical bills regardless of who was at fault — and regardless of whether the other driver was insured. MedPay typically covers ambulance fees, emergency room visits, and follow-up treatment up to your policy limit.

Health Insurance as a Backstop

Your health insurance can cover accident-related medical treatment regardless of who was at fault. However, your health insurer may have a right to reimbursement (called subrogation) if you later recover money from the at-fault driver or through a UM claim. Understanding how subrogation works is important when evaluating any settlement.

Steps to Take After Being Hit by an Uninsured Driver

1. Call 911 and get a police report — document that the driver had no insurance
2. Gather the driver's name, address, and license plate even without insurance info
3. Take photos of the scene and all vehicles
4. Seek medical attention immediately
5. Notify your insurance company promptly
6. Review your policy for UM/UIM and MedPay coverage
7. Consider consulting an attorney before giving statements to your own insurer

Getting Legal Help

Dealing with an uninsured driver adds complexity to an already stressful situation. An experienced personal injury attorney can help you navigate UM/UIM claims, negotiate with your own insurance company, and explore all available sources of recovery. Check if you may qualify for assistance here.

Frequently Asked Questions

What if I don't have UM coverage?

If you don't carry UM coverage, your options are more limited. You can still sue the at-fault driver directly, file a claim under any applicable MedPay coverage, or rely on your health insurance for medical bills.

Will filing a UM claim raise my insurance rates?

In most states, filing a UM claim does not affect your rates because you were not at fault. However, this varies by insurer and state law. Ask your agent about your specific policy.

Do I need a lawyer to file a UM claim?

You are not required to have an attorney, but many UM claims involve disputes over fault, injury severity, and damages. An attorney can help ensure you receive fair compensation rather than a quick, lowball settlement from your own insurer.