What Happens if You Have No Insurance but the Other Driver Was at Fault?

In 2022, roughly 14% of motorists were uninsured. So if you’ve ever had to go without car insurance, you aren’t alone. However, driving around without car insurance can leave you facing civil and criminal penalties.

If you cause a car accident, you could also be stuck paying tens of thousands in damages, medical bills, and other fees. However, what happens if you have no insurance but the other driver was at fault?

While you might face some consequences for not having insurance coverage, the other driver can be held accountable for their actions, too. Depending on where you live, though, your ability to receive compensation might be limited. Here’s everything you need to know.

Can I Sue After a Car Accident Without Insurance if Not at Fault?

Yes, you can still file a lawsuit and seek an out-of-court settlement if you are involved in an accident where the other driver was at fault. You can also seek damages during a trial if you are unable to reach a settlement agreement during negotiations. Not having insurance does not eliminate your right to seek damages or sue the at-fault party.

However, it’s important to understand that numerous factors can influence your ability to file a claim. Some variables to consider include the degree or percentage of fault, the state you live in, and the extent of your injuries. If you also contributed to the crash but were not primarily responsible, the amount you can recover could be greatly reduced.

Will Lack of Insurance Affect My Recovery Amount?

Depending on where you live, not having car insurance can impact your ability to recover money for property damage and bodily injury. Several states have enacted “No Pay, No Play” laws, including Louisiana. This legislation limits how much you can recover unless your claim exceeds a certain dollar amount.

Since these laws limit how much you get, they may prevent you from recovering anything at all. For instance, the average settlement for a minor car accident is around $12,875.

Under Louisiana’s “No Pay, No Play” law, uninsured motorists cannot recover damages for the first $25,000 of property damage. They’re also barred from being compensated for the first $15,000 of bodily-injury-related expenses.

Let’s say that you are not insured and get involved in a crash in Louisiana. The other driver was completely at fault, and you suffered $20,000 in bodily injury-related expenses and $30,000 in property damage. In this case, you could only recover $5,000 for your bodily injury claim and $5,000 for your property damage claim.

What Happens if My Car Gets Totaled With No Insurance While Not at Fault?

If your car gets totaled, you can still seek damages from the other party. However, the average car accident settlement in the United States is valued at over $35,000. While that may sound like a lot of money, there’s no guarantee you will recover this amount.

Even if you do recover $35,000 or more, you’ll have a lot of expenses to cover, including medical bills, towing fees, and potentially tickets for operating a vehicle without insurance. If you don’t own your car outright, you’ll also have to use some of the money to pay off the loan. There’s a chance you may not get enough to pay off your car.

In this scenario, you’ll have to pay the remaining balance on your auto loan and buy a new car. Getting financed for another vehicle while you have an outstanding car loan can be tough.

Can I Face Penalties for Not Having Insurance?

Yes, even if you aren’t at fault, you can face penalties for operating a vehicle without insurance. During a crash investigation, police officers can issue citations for any violation they uncover, including a lack of insurance.

The penalties for driving without insurance will vary depending on what state you live in and whether you have committed the offense before. These fines can total hundreds of dollars. If you don’t pay them, you could also have your license suspended, resulting in even more expenses.

Additionally, receiving tickets can drive up the cost of your car insurance premiums in the future. Over time, the financial repercussions of getting into a crash without insurance can total thousands of dollars.

Injured During a Car Crash? ConsumerShield Can Help

If you’ve been hurt in a car crash and don’t have insurance, ConsumerShield may be able to help. We can connect you with an experienced personal injury attorney in your area. Your lawyer will guide you through the claims process, review the merits of your case, and help you decide what to do next.

To get started, contact our team, and we’ll put you in touch with an experienced legal professional. Every member of our network is carefully vetted to ensure you receive exceptional service.