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Underinsured or Uninsured Drivers Can Be Sued by Companies

  • Way app
  • Xavier Sabastian
  • 6 minutes

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Insurance companies may opt to go after the uninsured or underinsured at-fault drivers in an accident to pay for your damages. However, the best way to pay for damages is with insurance you purchase yourself. Read on to know more.

If you’ve been in a collision with an uninsured motorist, don’t worry! Getting the right insurance through the super app Way.com will lessen the lines on your brow. Everything you might want to know about car insurance is available on Way.com.

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Can car insurance companies go after uninsured or underinsured drivers?

Insurance companies can pursue drivers who do not carry the required coverage. However, the procedure and probability differ depending on the nation and state where the mishap occurred. The insurance company may decide it is not worthwhile to pursue legal action against the motorist.

Having auto insurance is a legal requirement in almost every U.S. state. If the other party caused an accident and did not carry insurance, your company could file a claim against them. However, it can be a time-consuming and costly process.

Uninsured Motorist Protection Act

When one of the drivers is uninsured, the rules of both the state and the federal government may apply. According to the Uninsured Motorist Protection Act, all insurance providers must make uninsured motorist coverage available to their clients. 

Your auto insurance provider will pay for your losses up to the limits of your uninsured motorist policy if you collide with an uninsured driver.

Definition of Uninsured Motorist Coverage (UM)

Are you involved in a collision with a driver who does not carry insurance? Your insurance policy will protect you if you purchase “uninsured motorist coverage” or “UM.” Although some states mandate uninsured motorist coverage, others do not. In addition, even though insurance providers are not mandated to provide this coverage, they may do so voluntarily.

Uninsured motorist policies may compensate for both property and bodily harm. In addition, your uninsured motorist coverage will pay for your medical expenses, up to your policy’s maximum, if you were injured in an accident with an uninsured driver.

No-Fault Coverage

Some states refer to UIM or underinsured motorist coverage as “No-Fault” coverage. Your insurer will cover the costs of the collision regardless of who caused it. Are you hit by a driver who does not have insurance? You can file a claim with your insurance company thanks to your uninsured motorist coverage (“UM”).

Definition of Underinsured Motorist Coverage

If you are involved in a collision with another motorist with insurance but not enough to cover your damages, you will be protected by Underinsured Motorist Coverage or UIM.

If the other driver does not have enough insurance, your underinsured motorist coverage will kick in and pay for your damages. In the event of an accident with another motorist who is insured but does not carry enough coverage to compensate you for your losses, underinsured motorist coverage (UIM) will kick in to cover the difference.

If you are injured in an accident, and the other motorist has auto insurance but not enough to cover your medical expenses, UIM will kick in to help. If you’re in an accident with an uninsured motorist, this can be a lifesaver.

Uninsured vs. Underinsured: How does it work?

Uninsured vs. Underinsured: How does it work?

In some states, you must have one or both of these types of insurance to protect yourself. 

There are two kinds of coverage for drivers who don’t have enough insurance:

  • Body injury liability:¬†This is meant to pay for your medical bills after an accident with a driver who was at fault but didn’t have enough insurance or left the scene. This part will pay for your time in the hospital, visits to the doctor, lost wages, and more.
  • Property damage liability:¬†This is meant to cover material losses like damage to your car, home, lawn, fence, and other property. There are limits on how much you can get from UM and UIM. No matter your limits, you must file your UM or UIM claims within a certain amount of time. Sometimes it’s as little as 30 days, depending on your policy.

Uninsured or Underinsured Coverage: Is it Mandatory?

Your insurance company will pursue the at-fault driver in case of an uninsured or underinsured motorist claim to recoup any costs incurred. 

It’s important to know you have this choice, even if it’s complex and costly to implement.

Uninsured or Underinsured Coverage: Coverage limits

Coverage for accidental deaths, damaged property, and medical bills is all available under UM and UIM policies.

Coverages available:

  • No coverage for car damage under the other driver’s liability insurance
  • The other party’s auto insurance does not cover your injuries in a collision.
  • The at-fault party’s liability insurance doesn’t cover a fatality brought on by accident.
  • The at-fault party’s insurance does not pay for medical costs, including ambulance services and hospital stays.
  • The other motorist’s liability insurance does not cover damages for pain and suffering.

Can you file a lawsuit against an uninsured or underinsured driver?

If a driver without UM or UIM injures you, you can still sue for personal injury.¬† Many lawyers who help people who have been hurt offer free consultations so that you can get their opinion before you decide to go to court. Still, it might not be in your best interest to go to court over this type of case. If the driver who hit you can’t afford car insurance, they probably won’t be able to pay for your damages and medical bills.¬†

But if you decide to take action, you have between 30 days and two years to file, depending on the state. If convicted, the defendant will likely pay you back in installments. Then, you’ll either have to pay your lawyer’s fees or the lawyer will take a cut of the money from the defendant.

The best car insurance app Way.com compares the best prices from more than 200 of the best insurance companies. 

Protect yourselves from UM or UIM via Way.com

The best car insurance app Way.com compares the best prices from more than 200 of the best insurance companies. 

Way.com will take care of the rest. From filling out the paperwork to helping you cancel your old policy everything will be done. An average person who uses Way.com can find cheaper insurance with better coverage and save $971 a year.


Here’s more info on¬†top-rated airport parking,¬†the best parking spots in your city, affordable¬†auto insurance, easy¬†auto refinance, and¬†high-quality car washes near you.


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