During the mid-2000s, higher levels of prosperity in the U.S. led to a steady drop in uninsured motorist rates. However, since 2008, these rates have been rising incrementally. To combat this problem, the DMV recommends that drivers obtain uninsured driver insurance from their insurance carrier and penalizes motorists who fail to maintain auto insurance.
With that being said, if you’ve been involved in an accident with an uninsured driver, you may feel like you have limited options. Suing the uninsured driver may seem pointless, as their inability to afford insurance often indicates they lack the assets to make a lawsuit worthwhile. However, this is where having an experienced car accident lawyer on your side can make a difference.
To better understand your options, keep reading to learn more about how to protect your rights if you get into an accident with an uninsured driver. With the right information and legal support, you can take the necessary steps to move forward with your life.
Do You Have Uninsured Motorist Coverage?
Uninsured motorist coverage, also known as uninsured driver’s insurance, is a type of auto insurance that protects you financially if you’re involved in an accident with a driver who doesn’t have insurance.
This coverage is designed to help cover your medical expenses, lost wages, pain and suffering, and vehicle repairs when the at-fault driver lacks adequate insurance to compensate you for your losses.
There are two main types of uninsured motorist coverage:
- Uninsured Motorist Bodily Injury (UMBI): This coverage pays for medical expenses, lost wages, and pain and suffering if you or your passengers are injured in an accident caused by an uninsured driver. It also applies if you’re a pedestrian struck by an uninsured motorist or if you’re hit by a hit-and-run driver.
- Uninsured Motorist Property Damage (UMPD): This coverage pays for repairs to your vehicle if it’s damaged in an accident caused by an uninsured driver. In California, UMPD coverage is only available if the authorities identify the uninsured driver.
In addition to these two types of uninsured motorist coverage, California also offers Underinsured Motorist Coverage (UIM).
This coverage comes into play when the at-fault driver has insurance, but their policy limits are not high enough to cover all of your damages. UIM coverage pays the difference between the at-fault driver’s insurance limits and your UIM limits.
The Role of Uninsured Motorist Coverage in Your Case
If you’re unsure whether you have uninsured motorist coverage, it’s worth reviewing your auto insurance policy. Having this coverage can provide peace of mind and financial protection in the event of an accident with an uninsured driver.
While having uninsured motorist coverage can be beneficial for your case, it’s important to remember that it’s not the only factor in determining the outcome. The specific circumstances of your accident, the extent of your injuries and damages, and the legal representation you have will all play a role in your case.
The Impact of Uninsured Motorists in Los Angeles
The high proportion of uninsured drivers in California significantly impacts auto insurance costs, affecting insured drivers in multiple ways. Uninsured drivers cause approximately one in eight accidents nationwide, with California’s uninsured driver rate estimated at 15%, higher than many other states.
When an insured driver is involved in an accident caused by an uninsured motorist, they must file a claim with their insurance company, potentially leading to increased premiums and out-of-pocket expenses like deductibles.
Uninsured motorist coverage is also more expensive in California due to the elevated risk of accidents with uninsured drivers.
Insurance companies must adjust their premiums to account for this risk, resulting in higher overall auto insurance costs for all insured drivers in the state.
Several factors contribute to California’s high uninsured driver rate, including the inability to afford insurance premiums and the belief that driving without insurance won’t result in consequences.
California’s substantial uninsured driver population directly impacts insured drivers by increasing the likelihood of accidents with uninsured motorists. This leads to higher claims payouts, elevated premiums, and additional out-of-pocket expenses.
Penalties for Uninsured Motorists
California actively imposes strict penalties on uninsured drivers to discourage the practice and protect insured motorists. The state charges fines ranging from $100 to $200 for a first offense, with total costs reaching around $450 after fees.
If a driver commits subsequent offenses within three years, they face fines from $200 to $500, amounting to over $1,000 with fees.
Law enforcement may impound vehicles of uninsured drivers, forcing them to pay towing and storage fees. The DMV actively suspends licenses of uninsured drivers involved in accidents until they provide proof of insurance and pay reinstatement fees of $100 to $500.
Uninsured drivers who cause accidents bear personal liability for damages and injuries.Insured drivers file claims with their insurance, which may pursue legal action against the uninsured driver, leading to wage garnishment, property liens, or bankruptcy.
California uses the Statewide Insurance Verification System (SIVS) to verify vehicle insurance status electronically.
Statewide Insurance Verification System (SIVS): What You Need to Know
The Statewide Insurance Verification System compares vehicle registration data from the Department of Motor Vehicles (DMV) with insurance policy information provided by licensed auto insurance companies operating in the state.
Here’s how it works:
1. Insurance companies regularly submit policy information to SIVS, including the policyholder’s name, vehicle information, and policy effective dates.
2. When a vehicle is registered or renewed, the DMV provides the vehicle and owner information to SIVS.
3. SIVS compares the DMV data with the insurance policy information to verify that the vehicle is insured.
4. If SIVS cannot confirm valid insurance coverage for a vehicle, it flags the vehicle as potentially uninsured.
5. The DMV then sends a notice to the vehicle owner requiring them to provide proof of insurance within a specified timeframe, typically 30 days.
6. If the vehicle owner fails to provide proof of insurance, the DMV may suspend the vehicle’s registration until the owner provides evidence of insurance and pays any necessary reinstatement fees.
7. Law enforcement agencies can also access SIVS data, allowing them to quickly verify a vehicle’s insurance status during traffic stops or accidents.
The SIVS system helps California identify and address the issue of uninsured vehicles more efficiently by automating the insurance verification process.
This enables the state to act against uninsured drivers more quickly and consistently, ultimately reducing the number of uninsured vehicles on the road and protecting insured motorists from the financial consequences of accidents involving uninsured drivers.
California Low-Cost Auto Insurance Program (CLCA)
The CLCA program provides affordable, basic liability insurance to eligible low-income drivers.
To qualify for the program, applicants must:
- Have a valid California driver’s license
- Own a vehicle valued at $25,000 or less
- Meet income eligibility requirements (e.g., annual income not exceeding 250% of the federal poverty level)
- Be at least 19 years old
- Have a good driving record
The CLCA program offers policies with the state’s minimum required liability coverage of $10,000 per person for bodily injury, $20,000 per accident for bodily injury, and $3,000 for property damage (10/20/3).
These limits are lower than the standard minimum requirements, making the policies more affordable. The program’s premiums vary by county but are generally much lower than traditional auto insurance policies.
California has also implemented other initiatives to reduce the number of uninsured drivers:
- Educational campaigns: The state has launched public awareness campaigns to educate drivers about the importance of auto insurance and the consequences of driving uninsured.
- Payment plans: Some insurance companies offer payment plans to help make insurance premiums more manageable for low-income drivers.
- Community-based organizations: Some non-profit organizations work to promote access to affordable auto insurance and help low-income drivers navigate the insurance system.
Check with an experienced car accident law firm for the most relevant information about Los Angeles uninsured driver laws and information.
How Can an Uninsured Motorist Lawyer in Los Angeles Help?
If an uninsured driver hits you in California, a lawyer will:
- Evaluate your case by reviewing police reports, witness statements, and medical records.
- Identify potential compensation sources, such as uninsured motorist coverage, PIP coverage, or third-party claims.
- Negotiate with insurance companies to maximize your compensation.
- If necessary, file a lawsuit against the uninsured driver or other liable parties.
- Prove the uninsured driver’s liability and the extent of your damages.
- Advise you on seeking appropriate medical treatment and ensure proper documentation.
- Provide professional guidance and support throughout the process.
Insurance companies minimize their financial exposure, so it’s crucial to have a lawyer advocate for your rights.
Pursuing a claim or lawsuit against an uninsured driver is complex and time-consuming. A California auto accident lawyer familiar with laws and uninsured motorist cases streamlines the process, helps avoid mistakes, and increases your chances of a favorable outcome.
They can identify compensation sources, negotiate with insurers, file lawsuits, prove liability and damages, ensure proper medical documentation, and provide professional guidance.
With a skilled lawyer, you can focus on recovery while they secure the compensation you deserve.
Schedule Your Free Consultation with a Car Accident Lawyer Today
Pursuing a claim or lawsuit against an uninsured driver is complex and time-consuming, but our experienced car accident attorneys at Wilshire Law Firm can streamline the process, help avoid mistakes, and increase your chances of a favorable outcome.
With our legal team on your side, you can focus on recovery while we work to secure the compensation you deserve. If you’ve been hit by an uninsured driver in Los Angeles, don’t hesitate to contact our law firm for a consultation.
