What Happens If You Have No Insurance but the Other Driver Was at Fault In California? For those of us who do not have car insurance in California, being involved in an accident can be stressful, as it is when the other driver is at fault.
California is one state in the U.S. that is popularly referred to as a “fault” state, and what that means is that in the event of an accident, the driver that is adjudged to be at fault would be responsible for whatever damages that is caused by the accident.
Nevertheless, if you are not at fault, the fact that you do not have insurance complicates the situation.
If you do not have insurance, you can lose your right to receive non-economic damages (as in compensation for pain and suffering) under California’s Proposition 213.
Generally, the other driver’s insurance will cover your economic damages up to the limit of their policy. We need to let you know that it is not easy to deal with uninsured drivers in an accident, especially regarding compensation recovery.
Suing the driver personally can be time-consuming and may not always yield the results you are looking for.
Secondly, it is also important to note that it is illegal to attempt driving in California when you don’t have insurance coverage and can be fined and even have your license suspended.
While the other driver’s fault may lessen your short-term costs, it does not mitigate the long-term effects of being without coverage.
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Now, let’s get started.
What Happens If The Person At Fault In An Accident Has No Insurance In California?
In California, the law mandates that drivers carry at least a set amount of liability insurance, but not everyone does. If the driver at fault in the accident is uninsured, the victims will find it difficult to recover compensation for damages and injuries.
If you have uninsured/underinsured motorist (UM/UIM) coverage, that’s your first line of defense. It’s optional coverage that protects you if the responsible party doesn’t have enough insurance and it pays damages to you, your passengers, or your vehicle.
If you also do not possess UM/UIM coverage, your situation becomes increasingly more complex, and the same goes for your options.
Damages may have to be recovered against the uninsured driver. However, that may not be easy, depending on whether the at-fault driver has the financial ability to settle or make a judgment.
This highlights the importance of adequate insurance for PIP and UM/UIM coverages for added financial protection.
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Do Insurance Companies Go After Uninsured Drivers In California?
Of course, insurance companies in California will often go after those without insurance to recoup what they are owed after an accident.
As long as you are insured, if you are in an accident with an uninsured driver, your insurance company can pay through that uninsured/underinsured motorist (UM/UIM) coverage, but only if you have it.
When the insurance company pays out your claim, it may press for the return of the money paid by suing the uninsured driver.
In this case, the process is called subrogation, allowing your insurer to recoup expenses associated with property damage, a medical bill, or any other covered costs.
However, success depends on whether the uninsured driver can pay.
Drivers without UM / UIM coverage have few options. The only option may be to sue the uninsured driver directly, but it can be expensive and time-consuming, particularly if the driver can’t pay.
Financial protection from these situations necessitates that you carry enough insurance.
How Does Car Insurance Work When You Are Not At Fault In California?
If you’re not at fault in an accident in California, your car insurance can help pay your damages in several ways, depending on your policy and what happened.
If you have collision coverage, that means regardless of whose fault it is, your repair is covered. But if that other driver is at fault, you can make a claim on their insurance for repairs, medical expenses, and damages.
A separate category of at-fault driver’s insurance is supposed to cover your costs. Uninsured motorist coverage is triggered to help you pay for damages if you or a family member involved in an accident are uninsured or underinsured.
So, often, your insurer will negotiate with the other driver’s insurance to recover its money through subrogation. If the other party’s insurer denies liability, you will generally have to sue, but your insurer may help you do so.
Overall, when you have the right coverage, you can rest assured that you are protected, especially when you are not at fault.
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What Happens if an Unlicensed Driver Has An Accident With My Car In California?
Things can get complicated if you crash your car with an unlicensed driver in California. California drivers are required by California law to have a valid driver’s license. If the at-fault traffic violator is unlicensed, they may be subject to fines and vehicle impoundment.
The result depends on the circumstances. If the unlicensed driver was at fault and you have collision or UM/UIM coverage, your insurance may cover the damages to your car.
However, if the driver is unlicensed, their insurance may still cover the damage, but it could get complicated if they aren’t insured.
If they have no insurance, you will probably have to file a claim against your insurer and/or take legal action against the unlicensed driver to recover your expenses. You should call the police and discuss your options with your insurance company.
Can Someone Sue You For A Car Accident if You Have Insurance In California?
Being insured doesn’t make you immune to suing, especially when you get involved in an accident with another driver.
Getting insurance doesn’t mean you are immune to lawsuits, and if the plaintiff can prove that you were at fault in the accident, you’re still liable. However, your insurance might help pay the bill if your policy’s limits and situation allow it.
In California, every person who drives must have enough liability coverage to pay for damages to other motorists if he or she is responsible.
If the damage exceeds the amount you’re covered for, the other party can sue you for those costs. However, if those damages involve pain and suffering, medical bills, or lost wages beyond your policy’s limits, the injured party may be able to get compensation with a lawsuit.
Ensure appropriate insurance coverage; sometimes, add umbrella insurance to protect you from potential lawsuits.
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Final Thought
Finally, while actual insurance can lessen risks significantly, accidents can still turn into lawsuits in California if the cost of damages is more than your coverage limit or if you are determined to be at fault.
The idea is that with insurance, some costs can be covered. However, insurance doesn’t offer complete assurance against legal action.
Understanding your coverage limits is important; you want to ensure you have enough to care for your financial well-being.
But if the damage is more than you’re covered for on your policy or you’re unprepared, additional insurance, such as umbrella coverage, can provide extra protection.
When driving in California, always stay informed and protected.