No one plans to lose their insurance, but in tough economic times these things sometimes happen. If you find yourself driving without insurance and are involved in an auto accident, it’s important to know what consequences you’ll face.
Even if the accident wasn’t your fault, you may face severe penalties and fines.
Driving Without Vehicle Insurance
While it’s illegal to drive without insurance in Colorado, as in most states, it remains a problem. A survey conducted in 2012 found that 12% of American drivers are uninsured. Therefore, many states have adjusted the minimum insurance requirements to include uninsured motorist clauses, providing coverage for those in that 12% group who lack proper insurance.
In spite of this, if you’re involved in an auto accident without insurance, the other driver’s uninsured motorist coverage won’t absolve you. Even if the accident isn’t your fault, you may suffer the loss of your driver’s license and car registration as well as face fines or even jail time. The other driver may also choose to file a civil lawsuit against you.
Some individuals will try to buy insurance the day after an accident, hoping the coverage will be retroactive. This is never the case. The insurance won’t take effect until the day you purchase the policy. This date is reflected on the proof of insurance supplied by the provider, so the courts will verify that date and compare it with the date on which the accident occurred.
If the other driver caused the accident by hitting your vehicle, you may be in a better position as far as placing blame. While this still won’t excuse your lack of insurance, it may provide you with some relief from worrying about a lawsuit and having to pay damages to the other driver.
In such an event, the other driver’s insurance will have to pay damages as it normally would, even if you had been insured.
What to Do When an Accident Occurs
While you may be reluctant to do so, it is necessary and for your own benefit to call the police if an accident happens. While being uninsured will cause you to face citations, these don’t compare to what could happen if the other driver tells his insurance company you were at fault.
Without a police report, that scenario is very likely and will lead to a “he said, she said” argument. The insurance company is more likely to believe their own client under those circumstances, leaving you holding the bag and paying damages.
Even if you are at fault, a police report can still benefit you by detailing the specifics of the accident. A detailed report can outline the conditions under which the accident occurred, including mitigating factors that might have contributed to the accident. This will become especially important if the other driver sues for damages.
One detail to learn is whether the other driver has an uninsured motorist rider on his policy. It may be prudent to ask while you’re collecting the driver’s insurance and contact information. If there is an uninsured motorist policy and you are at fault for the accident, you may only have to pay the deductible to his insurance company.
Whatever sum you’re responsible to pay, the insured driver’s provider may work out a payment plan with you as a show of good faith. This helps in establishing your willingness to be responsible for your part in the accident and can go a long way toward avoiding a civil suit.
In any case, those involved in an auto accident are urged to contact a personal injury attorney as soon as possible. If you’re uninsured, this is even more important. By contacting an attorney, you will have an experienced and knowledgeable advocate who may be able to protect your rights even further. This is especially important if facing both civil and criminal penalties.
Fixing the mistake of lapsing on your insurance coverage shouldn’t be compounded by a lack of representation in dealing with the aftermath. The driver’s insurance company knows more about the laws than you do, so it’s important to level the field with a legal professional on your side.
