What Happens If the At-Fault Party Doesn’t Have Car Insurance?

If you’re involved in a Maryland car accident with a driver who doesn’t carry car insurance, you may still have options. However, your ability to recover compensation may depend largely on your own insurance coverage and whether or not the other driver has any assets. Like other states, Maryland does require drivers to carry car insurance. Unfortunately, that doesn’t stop people from letting their insurance lapse or never signing up for it at all. When that happens, it’s important to act quickly to explore your options.

Unsure of your options after a car crash with an uninsured driver? Let’s talk. Call Plaxen Adler Muncy to explore your legal options right now.

Is it illegal to drive without car insurance?

Yes. Maryland requires drivers to carry insurance that covers at least $30,000 for bodily injury, $60,000 for two or more people, and $15,000 of property damage. The MVA does fine drivers and suspends vehicle registration for driving without insurance.

The bad news is that none of this helps you if you’re hit by an uninsured driver. If they don’t have car insurance, your options are significantly reduced. Even if the at-fault driver is penalized for not carrying insurance, that doesn’t put you in a better position to seek compensation.

What are your options if the at-fault driver is uninsured?

One of the easiest options for you may be filing a claim against your own uninsured motorist coverage. In Maryland, automobile insurance policies must include uninsured motorist coverage. This type of coverage includes both property damage and bodily injury. It steps in if the other driver has no insurance, flees the scene (which makes it a hit-and-run), or the other driver’s insurance denies coverage because of a violation of their policy terms.

Personal injury protection is another option to consider if you have it on your policy. In Maryland, it’s generally included in your policy automatically unless you waive it in writing. The amount of coverage you have depends on what you choose when you sign up for a policy, but the minimum is $2,500. It is possible to recover from a PIP claim and an uninsured motorist claim, depending on your policy and the facts in your case.

You could also file a lawsuit against the at-fault driver. Since they’re uninsured, any award you get would be against their own assets and income, not an insurance policy. However, you should know that winning a judgment is different from actually collecting on it. If the other driver does not have assets or income that allow you to collect what you win in court, you could still be left paying your own expenses.

You may also want to talk to a car accident attorney if there are other parties who are potentially liable for the accident. For example, if the driver was working at the time of the accident, their employer may be liable. If there was a defective vehicle component involved, you may have a claim against the manufacturer.

What if the driver is underinsured?

Maryland also requires underinsured motorist coverage. If the other driver has insurance but you hit the limits of their insurance before covering your full damages, your underinsured motorist coverage can step in to bridge the gap.

Why uninsured motorist claims can be complex

Car accident claims can be fairly straightforward, but uninsured or underinsured motorist claims are considerably more complicated. People tend to assume that filing a claim with their own insurance company will be easier than working with another party’s insurance, but that isn’t necessarily the case.

When your insurance company is paying an uninsured motorist claim, they essentially “step in” as the at-fault party’s insurance. This may make your claim adversarial, with your own insurance questioning your costs and liability the same way an opposing insurance company might. They could:

• Dispute fault

• Argue that you were partially at fault

• Challenge the severity of your injuries

• Question whether or not your medical treatments are really necessary

Maryland is a contributory negligence state, so if they prove that you caused the accident at all, they do not have to pay out. Trying to negotiate with your own insurance company when they are essentially arguing against your own best interests is challenging, which is why many people choose to work with a car accident lawyer.

You may still have options. Let’s talk about them.

Being hit by a car is stressful enough. Finding out that the other driver is uninsured makes the situation worse. But you don’t have to take on this situation alone. You still have options available, and you may not have to shoulder the costs of your accident on your own. The team at Plaxen Adler Muncy is here to help you compare options and find the right way to pursue compensation. Let’s talk about your next steps now. Just get in touch with us online or call us to schedule a consultation.