Over 6 million passenger car accidents occur every year in the US and the number is rising higher each year. With the increase in the number of vehicles on the road, you might likely have gotten in an accident at some point in your life, and if not, then going with the statistics, you are very likely to be in one. So it becomes very important to stay insured and get the best auto insurance policy in the market. But since auto insurance is such a vast topic, some confusing questions can arise.
For example, a common question that people wonder about is what happens if they get in a wreck with an uninsured driver? Who’s gonna pay for the repairs and medical treatments if the accident was the uninsured driver’s fault? This article will talk about all of that, answering every question related to it. So let’s get started.
How Insurance Claims Work
To get the answer, first, let’s look at how and why insurance claims work the way they work. Everyone in the US has to have liability insurance to legally drive a car. This liability insurance acts as a secure money deposit that can be used in an accident. If you get in an accident and it is your fault, who’ll be paying for the damages to the other person’s property and body?
Legally and morally, you should be the one to pay for it. But what if you don’t have that kind of money? This is why you are legally bound to have liability insurance with a state-prescribed minimum coverage limit that pays for the other person’s medical treatments and repairs when the accident is your fault.
Similarly, if the other person is at fault and you have a broken leg and a totaled car, you can make an insurance claim against the liability insurance of the person at fault. This is how and why insurance claims work. But as simple as it sounds, it is far from anything that can remotely be called “simple”.
What Happens If the Driver is Uninsured
Insurance claims can only work if people have an auto insurance policy. Even to this date, when the internet has allowed finding an affordable car insurance provider so easy, and the fact that it is illegal to drive without auto insurance, there are many uninsured drivers out there on the roads. And if you are unlucky enough, you might get in an accident with one of them.
So what happens if you get in an ugly car accident and the driver does not have liability insurance to pay for the damages and medical treatments if you need any? Let’s look at the various scenarios.
Sue the Person
The first thing that you can do is sue the driver at fault. This is the only way you can expect any money to cover the repairs and treatments. But the only issue here is that it is a legal process and it can be long, time-taking, and expensive in many cases.
Even if you sue and win (sometimes it can be a little difficult to prove that the accident was their fault and not yours), getting the money can be a very long process. So to avoid this hassle, many people get different auto insurance policies that are made for situations just like this.
Collision Insurance
Collision insurance is one of the most popular auto insurance policies in the US. This insurance policy covers the cost of repairs to the vehicle, regardless of whose fault the accident was. So if you get in an accident with an insured driver, you can claim the driver’s liability insurance, and if the coverage limit is inadequate, then you can claim your collision insurance coverage to pay the rest of the amount.
Not just that, but collision insurance coverage can be used when the driver at fault is uninsured. This is the reason why people who get liability coverage get collision insurance coverage as well. But collision coverage does not cover the cost of medical treatments.
Personal Injury Protection Insurance
Personal Injury Protection insurance, also called PIP insurance, is mandatory in twelve states and this insurance covers the cost of medical treatments, hospital bills, and sometimes even the money lost due to the inability to work. If the driver at fault does not have liability coverage, you can use your PIP insurance to pay for the medical bills.
In states where PIP insurance is mandatory, many health insurance companies either provide road accident injury coverage or both PIP and medical insurance are combined. Personal injury protection is very important to have since the person at fault might not have enough coverage limit to pay for medical bills, considering how expensive a trip to the hospitals could be.
Uninsured/Underinsured Motorist Coverage
Uninsured/Underinsured motorist insurance coverage is exactly what’s needed when the driver at fault either does not have liability coverage or the coverage limit is not adequate to cover the cost of repairs or medical bills. UM/UIM insurance policy can work with PIP and collision insurance policies as well. It means that you can use all three of these policies to cover the cost of one or two is not enough.
Should you get all three of these policies? For people living in the No-Fault States, yes, you’ll have to get personal injury protection coverage and liability coverage. Collision insurance is important for your vehicle, while uninsured/underinsured motorist coverage provides much-needed coverage in case the other driver does not have liability coverage.
