In every American state except Virginia and New Hampshire, drivers must have minimum insurance coverage to be on the road. Nevertheless, regardless of mandatory insurance laws, you will be held accountable for damages resulting from negligence behind the wheel, even if your insurer pays up.
Sometimes, life gets busy, and it’s all too easy to overlook your coverage’s expiration date and get up in an accident. This guide aims to delve deeper into this complex issue, shedding light on the potential pitfalls, repercussions of the aftermath, and the significance of hiring a reliable car accident attorney, such as at Price Benowitz.聽
Understanding Fault and No-Fault States
States fall into two main categories鈥攆ault and no-fault states. In fault states, the party responsible for an accident is liable for damages. The offender’s insurance company typically covers the cost of damages, adhering to the principle that the one who is at fault pays.
On the other hand, no-fault states implement a different approach. In these regions, every driver must have insurance. Regardless of who caused the accident, each driver’s insurance pays for the policyholder’s damages.聽
Consequences in Fault or Tort States
Driving without minimum coverage in fault states is illegal and carries severe consequences. An uninsured driver in an accident faces potential criminal charges and penalties varying across states. These penalties may include fines, jail time, vehicle deregistration, impoundment, and even an SR-22 requirement鈥攁 certificate of financial responsibility.
Also, you could be sued directly by the other driver for injury or property damage. Without insurance, you would have to pay for compensation out of pocket or have your assets sold to pay off the victims. If your assets are insufficient, the court may place a lien on your salary and future earnings.
Some states have a “no pay, no play” policy restricting uninsured drivers from suing. Around 11 states follow this rule. However, some allow you to recover only economic damages, not non-economic ones.
Consequences in No-Fault States
In no-fault states, like their fault counterparts, driving without minimum coverage is illegal and attracts similar penalties when you’re involved in an accident.
Because every party claims compensation from their insurer, you, as an uninsured driver, have no such safety net. Thus, you may be burdened with covering all your medical bills.
It’s also crucial to remember that Personal Injury Protection coverage does not extend to property damage. Consequently, you may be liable for your property damage and any damage inflicted on other drivers. Also, if the other driver’s damages exceed their coverage caps, they could sue you directly.
Consequences in States without Mandatory Insurance Requirements
In Virginia, motorists can drive without insurance by paying a $500 Uninsured Motor Vehicle. In New Hampshire, drivers must demonstrate their ability to meet the costs of an at-fault accident. Failure to comply with these rules may result in fines, license suspension, and other penalties.
Significance of Legal Help
Understanding the ins and outs of car accident insurance requires expertise in the system. When you opt for legal help, your attorney assists you in this journey every step of the way. This assistance lets you comprehend the rules and regulations of car accidents and what your rights are in such a scenario.
Your lawyer further makes you aware of the state鈥檚 laws regarding where the accident took place. This aids you in understanding your case better so that you can choose the most feasible option for yourself.
Not having car insurance becomes a complicated issue if you meet with an accident, but a car accident attorney can help you navigate this landscape effectively for a successful outcome.
Wrapping Up
Being insured protects you against the financial burden that stems from road mishaps. Its absence not only flouts the law in most states but can also lead to severe penalties and financial hardship.
Hence, ensuring that your insurance is up to date, regardless of your busy lifestyle, can save you from potential legal troubles and hefty out-of-pocket expenses for injury and property damage.