You are involved in a car accident. The other driver caused it. Then, on top of everything else you are dealing with, you learn they do not have car insurance.
It is an understandably stressful discovery, and one that can leave accident victims wondering: Who is going to pay for my medical bills, lost wages, and other damages if the person who hit me has no insurance?
The good news is that an uninsured driver does not always mean you are out of options.
When Saunders & Chabert handle a case involving an at-fault driver who appears to be uninsured, our investigation does not stop with the insurance information – or lack of insurance information – available at the scene. There may be other policies, responsible parties, or sources of coverage that need to be explored.
First, we ask 3 questions:
- Is the At-Fault Driver Actually Uninsured?
Learning that there is no insurance on the vehicle involved in the accident is important, but it does not necessarily answer every insurance question.
There are several circumstances we may investigate before determining that there is truly no applicable liability coverage.
Who owns the vehicle? Does the at-fault driver own another vehicle? Were they working when the accident happened? Could another insurance policy apply?
These details matter.
That is why you should not automatically assume that you have no way to recover compensation simply because the other driver could not provide proof of insurance or the vehicle they were driving was uninsured.
- What If the At-Fault Driver Was Driving Someone Else’s Car?
One of the first places we may look is at the relationship between the at-fault driver and the vehicle involved in the crash.
Suppose the at-fault driver was borrowing someone else’s vehicle and there is no applicable insurance coverage on that particular car. That driver may still own a different vehicle and carry an auto insurance policy of their own.
Depending on the policy and the circumstances surrounding the accident, that insurance could potentially provide another source of coverage.
In other words, determining that the car did not have insurance is not always the same as determining that the driver has no applicable insurance coverage.
Part of our job is looking beyond the information immediately available after the crash to determine whether another policy may come into play.
- Was the Other Driver Working When the Accident Happened?
We also want to know what the at-fault driver was doing at the time of the collision.
Were they making a delivery? Traveling somewhere as part of their job? Running an errand for their employer? Performing another work-related duty?
If a driver causes an accident while acting within the course and scope of their employment, their employer may also be legally responsible for the employee’s actions. That can create another potential avenue for liability and insurance coverage.
This is an important part of the investigation because an at-fault driver may personally have little or no insurance coverage while their employer carries a liability policy that could apply to the accident.
It is one reason seemingly small details about where the driver was going and why they were on the road can become significant in a personal injury case.
What Happens If There Really Is No Other Liability Insurance?
Sometimes, after investigating the vehicle, the driver, and the circumstances surrounding the accident, there simply is no additional liability coverage to pursue.
That is when another question becomes especially important: Do you (the victim) have uninsured/underinsured motorist coverage?
Commonly referred to as UM Coverage, Uninsured/Underinsured Motorist Coverage is designed to protect you when you are injured by a driver who either has no liability insurance or does not have enough insurance to fully cover the damages for which they are legally responsible.
This means that when the person who caused your accident cannot provide adequate insurance coverage, your own policy may become an important source of recovery.
How Does UM Coverage Work in Louisiana?
For personal automobile policies in Louisiana, Uninsured/Underinsured Motorist Bodily Injury Coverage is generally included at the same limits as the policy’s bodily injury liability coverage unless the insured takes certain steps to reject UM coverage, select lower limits, or choose economic-only coverage.
That distinction matters because simply asking, “Do I have UM coverage?” may not tell the whole story.
When reviewing an injured client’s policy, our attorneys want to know:
- Do you have UM coverage?
- What are your UM limits?
- What type of UM coverage did you select?
The answers can significantly affect the protection available after an accident with an uninsured driver.
Full UM Coverage vs. Economic-Only UM Coverage
Not all UM coverage provides the same protection.
Traditional Uninsured/Underinsured Motorist Bodily Injury Coverage may provide compensation for both economic and noneconomic losses, subject to the policy and applicable law.
- Economic Losses are financial damages that can be measured, such as medical expenses, lost wages and certain out-of-pocket costs.
- Noneconomic Losses can include damages such as pain and suffering, inconvenience and mental anguish.
Louisiana drivers may also have the option of selecting Economic-Only UM Coverage. As the name suggests, economic-only coverage is more limited. It may cover qualifying financial losses, but it does not provide UM compensation for noneconomic damages such as pain and suffering.
A driver can also reject UM coverage or select UM limits lower than their bodily injury liability limits by completing the applicable selection process.
Those decisions may seem like another piece of insurance paperwork when a policy is purchased or renewed. After a serious accident with an uninsured or underinsured driver, however, they can become incredibly important.
Know What You Are Signing
We have discussed before why it is important to understand the insurance forms placed in front of you.
UM coverage is a prime example.
Louisiana has a specific Uninsured/Underinsured Motorist Bodily Injury Coverage form through which an insured can make selections regarding this coverage. Depending on the selection made, you could be choosing lower limits, economic-only protection, or no UM bodily injury coverage at all.
Before signing a form that changes your coverage, make sure you understand what protection you are giving up or limiting.
You may not fully appreciate the significance of UM coverage until the person who causes your accident does not have enough insurance to compensate you for your injuries.
Why Would I File a Claim With My Own Insurance Company?
Some accident victims are surprised to learn that their own insurance carrier may become involved when someone else caused the crash.
But UM coverage is coverage you purchased to protect yourself against this exact type of risk.
You paid premiums for protection in case an uninsured or underinsured driver injured you. Making a UM claim does not change who caused the accident.
It does, however, mean that your own insurer and the terms of your policy become an important part of the claim.
That is another reason it is helpful to have an attorney review the applicable insurance policies and determine what coverage may be available before assuming you know the value—or limitations—of your claim.
Hit by an Uninsured Driver? Let Saunders & Chabert Look at the Full Picture.
Being told the person who hit you does not have insurance can make an already difficult situation feel hopeless.
But an uninsured driver does not necessarily mean an uninsured accident.
At Saunders & Chabert, we know where to look when coverage is not immediately obvious. Our attorneys can investigate the vehicle involved, the at-fault driver’s own insurance, whether the driver was working at the time of the crash, potential employer liability and the UM coverage available through your own policy.
Before assuming you are out of options, let our team take a closer look! If you have been injured in an accident with an uninsured or underinsured driver in Louisiana, contact Saunders & Chabert to discuss your case and the coverage that may be available to you.
