When the other driver has no insurance, the claim doesn’t go to their insurer because there isn’t one; it goes to yours, under a coverage called uninsured motorist, if you bought it. Every state requires drivers to carry liability insurance or prove financial responsibility. A meaningful share of drivers ignore that requirement anyway. The result is a crash where the at-fault party has nothing to pay with, and the injured driver’s own policy becomes the only realistic source of recovery.
Uninsured motorist coverage is the answer, if you have it
Uninsured motorist coverage, usually called UM, pays for your injuries when the at-fault driver has no liability insurance. Underinsured motorist coverage, UIM, pays when they have some but not enough. Roughly twenty states require insurers to include UM coverage in every auto policy. In most of the rest, insurers must offer it, and the driver can reject it in writing. Many people reject it to lower the premium and don’t remember doing so until the day it matters. The first step when the other driver has no insurance is to read your own declarations page.
How a UM claim works when the other driver has no insurance
A UM claim is a claim against your own insurance company, and your insurer takes the position the at-fault driver’s insurer would have taken. It can dispute fault, dispute the injury, and dispute the value. The difference is that your policy’s cooperation clause applies, so you generally have to give a statement and provide records. Most UM disputes are resolved through the arbitration clause in the policy rather than a lawsuit. The limits are whatever you purchased, and they’re often set to match your liability limits by default.
Property damage when the other driver has no insurance
UM coverage in most states covers bodily injury only. Damage to your car falls under collision coverage, if you have it, or under a separate uninsured motorist property damage coverage that a handful of states offer. Without either, the car repair comes out of your pocket or from a lawsuit against the driver. Some states waive the collision deductible when the other driver was uninsured and at fault.
Suing directly when the other driver has no insurance
You can sue an uninsured driver personally. You will usually win. Collecting is the problem. A driver who couldn’t afford insurance rarely has assets or wages worth garnishing. Some states suspend the license of an uninsured driver who fails to pay a judgment, which creates pressure but not money. Lawyers generally pursue the driver only when UM coverage is missing or exhausted and the driver has something to collect from.
Other coverages that fill the gap
Medical payments coverage, called MedPay, pays medical bills regardless of fault, up to a small limit. In no-fault states, personal injury protection does the same on a larger scale and covers lost wages. Health insurance covers treatment but usually asserts a lien on any recovery. None of these replaces UM for pain and suffering or long-term losses. They keep the bills paid while the UM claim moves.
The bottom line
What happens if the other driver has no insurance depends almost entirely on a decision you made when you bought your own policy. Uninsured motorist coverage turns an uncollectible claim into a real one. Without it, the options narrow to collision coverage for the car, health insurance for the body, and a lawsuit against someone who has nothing. The law requires every driver to be insured. It doesn’t make the uninsured ones solvent.
Frequently asked questions
UM coverage on your own auto policy pays for your injuries when the at-fault driver has no liability insurance. Underinsured motorist coverage pays when they have some but not enough.
About twenty states require it in every auto policy. Most others require insurers to offer it, and drivers can reject it in writing. Check your declarations page.
In most states no. Car damage falls under collision coverage or, in a few states, a separate uninsured motorist property damage coverage.
Yes, and you will usually win. Collecting is the problem, because a driver who couldn’t afford insurance rarely has assets or wages worth garnishing.
Uninsured motorist coverage pays when the at-fault driver has no liability insurance. Underinsured motorist coverage pays when the driver has some insurance but not enough to cover your losses.
Check the declarations page of your auto policy, which lists every coverage and its limits. If you rejected it in writing when you bought the policy, it will not appear there.
In most states it does, because a driver who cannot be identified is treated as uninsured. Many policies require a prompt police report and some evidence of the other car.
Many states restrict insurers from raising rates for a claim when you were not at fault. The rules vary, so check your state insurance department or ask your insurer in writing.
Health insurance usually covers treatment regardless of who caused the crash. It will typically claim reimbursement from any later recovery through a lien.
Most states can suspend the driver’s license and registration, and the driver may face fines. The driver also remains personally liable for the damage they caused.
Keep reading: When the at-fault driver has no insurance in Arizona · MedPay coverage in Arizona · Hit-and-run accidents in Phoenix
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Get MatchedThis article is general information about uninsured motorist coverage and auto insurance claims and is not legal advice. Laws differ by state and change over time, and the facts of your situation matter. For guidance on your own circumstances, consult a licensed attorney in your state.