One in eight drivers operates a vehicle without insurance. Others don’t think they need insurance because they can’t afford it, or they disagree and think they are such good drivers that they will never need liability coverage.
Encountering an uninsured driver in an accident can significantly complicate seeking compensation for injuries. Dealing with an uninsured person who is responsible for your accident may make your case more difficult, and in some cases, suing such a driver might not help, even if you win in court.
Hire an experienced San Bernardino car accident attorney to navigate these complexities. They can assess your situation, outline all available options, and guide you through filing and substantiating your claim. Your lawyer can try to get you money for your injuries in any way possible, even by suing a driver who doesn’t have insurance if that’s a good option for your case.
Getting into a car accident is stressful enough. But when the at-fault driver has no insurance it can quickly become a nightmare. If your uninsured motorist claim gets denied, you may be wondering if you can take legal action against your own insurer.
I’ll cover when you have grounds to sue your insurance provider after a collision with an uninsured motorist. I’ll also explain your options if you didn’t have uninsured motorist coverage at the time of the crash.
While every situation is different, this guide will help you understand if and when suing your auto insurance company is justified after a run-in with a driver who lacks coverage.
When Can You Sue Your Insurance Company After an Uninsured Motorist Accident?
In most states including mine, drivers are required to carry a minimum level of liability insurance. This ensures that if an at-fault driver causes an accident, their insurer pays for damages.
But around 1 in 8 drivers nationwide are uninsured. If one of these motorists hits you, turning to your own insurer through uninsured motorist coverage is the best recourse.
Problems arise if your insurance company denies or underpays your uninsured motorist claim. Situations when legal action may be warranted include:
Your UM claim gets denied – If your insurer denies your uninsured motorist claim without good reason, you may have grounds to sue. For example, if they conducted little investigation before rejecting your claim.
The settlement doesn’t cover your losses – Even if your insurer approves your UM claim, they still may not fully reimburse your costs. You could sue for the difference between their settlement and your total damages.
Bad faith – If your insurance company acted negligently, dragged their feet, or otherwise handled your claim in “bad faith”, you may be able to sue for additional compensation.
Filing a lawsuit against your insurer should always be a last resort. I recommend first going through your state insurance department’s complaint process or seeking arbitration. But in certain situations, legal action is warranted after an unsatisfactory response to an uninsured motorist claim.
What If You Didn’t Have Uninsured Motorist Coverage?
Here’s the hard truth: If you didn’t carry uninsured motorist coverage prior to the accident, generally you have no legal grounds to seek payouts from your insurer. Without UM protection, they aren’t liable for damages from an uninsured driver.
So if you collide with an uninsured motorist but lacked UM coverage at the time, taking your insurance provider to court likely won’t get you far. Instead, you have two options:
File a claim with your collision policy – If you had collision coverage, your insurer must pay for damage to your vehicle, minus any deductible.
Sue the uninsured driver – You can file a direct lawsuit against the at-fault uninsured driver. But collecting damages this way is difficult since they likely have few assets.
The hard lesson is the importance of carrying uninsured motorist coverage – even when it feels unneeded. UM protection is shockingly affordable, often just a few dollars a month. Don’t make the mistake of dropping this critical coverage.
How Much Does it Cost to Sue an Insurance Company?
If you have a legitimate reason to take legal action against your insurer, how much can you expect to spend on a lawsuit?
Attorney and court fees vary widely, but here are some ballpark figures:
- Attorney retainer fee – $2,000 to $5,000
- Total legal fees – $5,000 to $50,000+
- Court filing fees – $100 to $300
Clearly, suing an insurance company isn’t cheap. Even a small claims court case will likely run you at least $5,000 or more. Complex lawsuits can easily exceed $50,000 in legal costs alone.
And there’s no guarantee you’ll win or recoup these expenses. So weigh the potential payout against the high cost before taking your insurer to court. In many cases, the time, stress, and money may not be worth it.
Alternatives to Suing Your Insurance Company
Before pulling the trigger on a lawsuit, I strongly encourage you to consider all alternatives. Here are three options that could resolve your uninsured motorist claim dispute without litigation:
File a complaint with your state regulator – Every state has an insurance oversight department you can submit a complaint to if you feel wronged by an insurer. They may intervene or help facilitate a settlement.
Seek independent arbitration – Many states offer arbitration programs that act as an intermediary between policyholders and insurers. It’s less costly than a lawsuit.
Hire a public adjuster – These licensed professionals advocate on your behalf in insurance claim disputes. They take a small percentage of any settlement.
Lawsuits should always be a last resort. But in some cases, legal action is warranted if your insurer egregiously mishandles an uninsured motorist claim. I urge drivers to explore alternatives first and proceed cautiously – these cases can be tough to win.
FAQ About Suing Auto Insurers After Accidents with Uninsured Drivers
Here are answers to some common questions about suing your insurance provider after a collision with a driver who lacks coverage:
Can you sue an uninsured driver directly?
You can file a direct lawsuit against the at-fault uninsured driver. But realistically, getting compensation this way is very difficult since they likely don’t have extensive assets or income to collect from. Suing your own insurer is usually the best option.
What if the accident was a hit-and-run?
With a hit-and-run, the at-fault driver’s identity is unknown. So your only path for reimbursement is filing a UM claim with your insurer or suing them if they wrongfully deny this claim. Collision coverage can also help pay for vehicle damage after a hit-and-run.
Is it illegal to drive without insurance in my state?
Most states, with the exception of New Hampshire and Virginia, require drivers to carry at minimum liability coverage. So driving without insurance is illegal. But roughly one in eight motorists are uninsured despite laws requiring coverage.
What happens if you’re at fault against an uninsured driver?
If you cause an accident against an uninsured driver, your liability insurance is still on the hook for their damages. This situation highlights why carrying ample liability limits is so important.
Can you sue if the other driver was underinsured?
Yes – if the at-fault driver’s liability limits are inadequate to cover your damages, your own underinsured motorist protection would kick in. You may be able to sue your insurer if they improperly deny an UIM claim stemming from an accident with an underinsured driver.
Common Car Accident Claim Damages
A skilled car accident lawyer knows about the different types of damages that could apply to your case and how much they are thought to be worth.
In a car accident case, you may receive both economic and non-economic damages. Economic damages are those that can be measured in money. Non-economic damages, on the other hand, don’t have a set value and are more subjective.
Potential damages to pursue in your auto accident case include:
- Future anticipated medical expenses are the medical bills that your lawyer and medical team think you will have in the future because of your car accident.
- If your injury has made it harder for you to do your job and make money, either temporarily or permanently, this is called “reduced earning capacity.”
- Loss of income: Making up for the time you missed from work while you healed from your injuries or got the medical care you needed
- Pain and suffering: The accident caused a lot of physical and emotional pain and suffering.
- Scarring and disfigurement: If the accident left you with severe scars or you lost a limb, you should get money to help with the physical and emotional problems you now have to deal with.
- Punitive damages: It is possible to get punitive damages in court if your lawyer can show that the other driver caused the accident by being careless or malicious.
It’s important to know all of these possible damages in order to build a strong case for getting the money you deserve, no matter who caused the accident. To make sure your car accident case is settled fairly, your lawyer will be very important in figuring out how much these damages are worth and presenting them.
Breach of the Duty of Care
If someone or something fails to meet the expected standard in the specific circumstances of the accident, this is called a breach.