An Accident without Auto Insurance: What to Do Next?
If you’ve had an accident while driving uninsured, you may be wondering what will happen next. In an at-fault state, if you are not at fault you can likely make a third party claim through the other drivers insurance. If you are at fault, the other drivers insurance may make the pay out, but you’re likely to go through subrogation later on, which involves the insurance agency suing you to reclaim all or part of the money they lost. For more information and detail on what to expect, read on.
Driving without insurance: the facts
If you’ve had an accident and don’t have auto insurance, it may be helpful to first gain awareness of where you stand with the law; here’s a brief breakdown of the facts:
- In the state of Illinois, it is illegal to drive without insurance.
- The minimum liability coverage amount required in Illinois is $25,000 for bodily injury per person, $50,000 bodily injury per accident and $20,000 for property damage.
- If you’re caught driving without insurance, the first time around you might only receive a fine, and possibly face your license being suspended, but if you are caught multiple times the repercussions will likely become increasingly worse.
- If you get caught driving without insurance, SR-22 insurance will be required.
- If you’re in an accident and uninsured, you may face an additional fine and driving suspension on top of other repercussions.
If you don’t meet the insurance requirements stated above and have been involved in an accident, read on to find out what to expect.
An accident without insurance: where do I stand?
If you have been unlucky enough to be in a car accident and were driving uninsured, you may be confused as to where you stand and what to do next.
In Illinois, this may depend largely on who is deemed to be at fault for causing the accident. Here’s an outline of what might happen in an at-fault state like Illinois, but please bear in mind that in a no-fault state, the process will work differently.
What to do next: for those not at fault
If you were not at fault, and the other driver was, you can make a third party claim for any bodily injuries or vehicle damage caused to you, through the at-fault drivers insurance.
What to do next: for those at fault
If you and the other driver believe that you were at fault, the situation can get a lot more complicated. Here’s an outline on what to do and what to expect:
- If you don’t have insurance, admit that you are uninsured, don’t try to hide the problem.
- If the other driver has a policy that supports uninsured motorist (UIM) claims, they will likely go ahead and file this claim.
- It is likely to take a very long time for the claim to be resolved, expect months or years of waiting.
- Once the claim is resolved, the insurance agency will then likely start a procedure called subrogation, which involves suing you to regain the money it lost paying for the cost of the crash.
- As you go through subrogation you will likely need to provide tax returns or show proof of your financial assets by other means, for example through a financial affidavit. You’ll probably need to pay towards the crash in the end, but unless you have the financial means, it’s unlikely you’ll pay the total amount that it cost the insurance agency.
If you’re currently driving without insurance, don’t risk getting involved in the above. With Insure on the Spot you can get affordable Chicago car insurance coverage that will bring you peace of mind and prevent the complexities and stress that an accident while uninsured would bring.