One out of seven. That’s the number of uninsured drivers on the road in the U.S.[1] So if you fall into the group, you’re certainly not alone, but you may still have questions.
For example, is driving without insurance against the law? Yes, in fact, it’s illegal in every state but New Hampshire. But even there, you still hold the financial responsibility for any crashes you cause.
Getting into an accident is always upsetting, but it can be especially scary if it happens when you aren’t protecting. If you are driving without insurance and get in an accident, here’s what’s most important:
- Who is at fault is the key factor, and your uninsured status doesn’t matter when determining fault.
- If you’re found at fault, you’ll likely be on the hook for any collision-related injuries and vehicle damage.
- If the other driver is deemed at fault, being uninsured could limit what compensation you can receive for injuries and other losses.
If you’ve been in an accident and you don’t have insurance, read on to learn what you should do and what options you have. We also have some advice on acquiring affordable insurance, so this doesn’t happen again.
What you should do immediately after you’re in a car accident without insurance
The first thing to do is stay put.
Even though there are penalties for driving without insurance (more on that below), they are minuscule compared to the repercussions of fleeing the scene of an accident. This is especially true if there were bodily injuries. Hit and runs have several thousand-dollar fines and possible prison time.
So, regardless of who is the at-fault party, please remain at the scene of the accident until you’ve completed the appropriate steps:
What are the consequences of being in an accident without insurance?
Once again, it depends on fault. Sometimes assigning blame is rather obvious, and other times, it’s a tad trickier. For instance, it’s possible to be partially at fault. But to make things simple, one driver will likely be more responsible than the other. Below are the two most common scenarios.
If the other driver is at fault
Lack of insurance might still pose problems for you even if you didn’t cause the accident (for example, you’re rear-ended). You still may face the following issues:
- Fines: Your state may require you to pay penalties for uninsured driving regardless of fault.
- License suspension: Even without causing the accident, your license will probably be suspended for driving without insurance.
- Vehicle impounding: The officer on the scene can choose to have your car towed.
If you live in a “No-Pay, No-Play” state, you could still be required to pay for your medical injuries and property damage. Furthermore, in the dozen or so “No Pay, No Play” states, you are limited in how much you can recover for losses. The state may forbid you from suing for “pain and suffering” or “non-economic” damages.
The following are No-Pay, No-Play states:
- Alaska
- California
- Indiana
- Iowa
- Kansas
- Louisiana
- Michigan
- Missouri
- New Jersey
- North Dakota
- Oregon
The thinking behind “No-Pay, No-Play” laws is that drivers who don’t buy insurance shouldn’t receive benefits from those who do.
How to find affordable car insurance after an uninsured accident
After you’ve been in an auto accident without it, you can appreciate the importance of having auto insurance coverage. Here’s how to help find an affordable insurance policy. Insurance companies use a variety of factors to set your rate, such as your age, credit score, vehicle and driving history. Regardless of your driving history, here are some strategies to lower your car insurance premiums:
- Bundle: Combine in other coverage such as renters, home or life insurance through the same provider for savings.
- Get a variety of quotes: Compare rates from multiple insurers to uncover the most cost-effective
- Leverage discounts: Lock in as many discounts as you can qualify for, like the paperless, automatic payments and telematics discounts
- Raise your deductibles: This can give you a lower monthly payment.
- Drive safely: While not all accidents are avoidable, the longer you can show a clean driving record, the better the chance of lowering your rates.
Suppose your driving record has lapses or an uninsured at-fault accident. In that case, you might need to consider high-risk car insurance, also known as non-standard car insurance. High-risk drivers can buy coverage from most major insurers at a higher cost than average.
If your car insurance options seem excessively pricey, The Zebra can help you compare auto insurance rates and secure the most budget-friendly policy possible. You can go from uninsured to fully protected in minutes.
Frequently asked questions
Here are some frequently asked questions about driving and getting in accidents while underinsured.