There are certain standard processes that typically follow a motor vehicle collision. The people involved in the incident usually document what happened and contact local authorities. They provide information to police officers for a collision report.
They communicate with insurance companies, arrange to repair their vehicles and seek out medical care. The party at fault for the crash typically supplies liability insurance coverage that can reimburse others for their collision-related expenses. State statutes mandate that drivers carry both property damage and bodily injury liability coverage. Unfortunately, not everyone adheres to the law as they should. The driver at fault for a crash may have a lapsed or canceled policy.
Who pays for the costs of a collision when there isn’t liability insurance available?
Uninsured drivers are a common complication
The rising cost of liability insurance is one factor contributing to widespread non-compliance with insurance regulations. According to claims data from 2022, California is among the worst states for uninsured drivers.
The state had the 11th-highest rate of uninsured motorist claims in 2022, resulting in an estimate that 17% of drivers lack coverage at any given time. That figure may actually be an underestimate, as new requirements for higher amounts of insurance recently went into effect in California.
When an uninsured driver causes a crash, there are a few options available to the people affected by the wreck. Some drivers carry extra coverage on their policies. Uninsured motorist, collision or comprehensive coverage can help people cover collision costs in some cases. However, using personal coverage typically means that a driver has higher insurance costs in the future.
Civil litigation can also be an option. When drivers fail to carry the insurance required by the law, they may have direct liability for the expenses generated by the collision. The people affected by the crash can theoretically pursue a personal injury lawsuit against the driver at fault for the wreck.
In some cases, third-party liability rules may apply. If the driver at fault was working at the time of the crash, their employer might have a degree of liability. Vehicle issues could also lead to a business being at least partially liable for the collision.
People hoping to cover their costs after a crash caused by an uninsured motorist may need help exploring liability and looking into legal avenues for covering collision expenses, and that’s okay.