How Insurance Companies Go After Uninsured Drivers This question comes in the mind of every person when he does not insure his vehicle and he wants to know what loss he may have to bear for not getting the insurance and today we are going to give you many answers related to this question.
Nowadays the number of people driving vehicles is increasing day by day. There are many people who drive their vehicles on the road without insurance and doing so is wrong. If seen according to the statistics, one out of every 8 drivers does not have insurance for his vehicle and this is a problematic issue. In case of an accident, it affects the insurance company and the people affected by the accident. So today in this post we will know that if an accident happens, how does the insurance company recover money from the driver?
Uninsured Drivers & Insurance Companies
So let us now tell you what problems a person faces if he has not insured his vehicle and what action the insurance company takes against such people
The problem of uninsured drivers
Driving without insurance is a big problem and there are many people who drive their vehicles without insurance. In order to save some money, they do not insure their vehicles and if an accident occurs due to any reason, then its negative impact falls on the people affected in the accident and also on the insurance company.
Financial burden on insurance companies
Whenever a car accident occurs and the person driving the vehicle does not have insurance for his vehicle, then the responsibility of paying for the damage lies with the insurance company or it can be said that the responsibility of compensating for the loss in the accident also lies with the insurance company because there is a person who has insured his vehicle and there is another person who has not insured his vehicle. In case of an accident, the insurance company recovers the money from the person who has not insured his vehicle to compensate for the loss.
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When Do Insurance Companies Go After Uninsured Drivers?
If the person driving the car does not have insurance and in such a situation, if an accident occurs, then Insurance Companies Go After Uninsured Drivers and the person who does not have car insurance. So, let us understand this in a little more detail below.
When two vehicles collide in an accident, it is ascertained how the accident happened and due to whose fault it happened. If a driver is found guilty, he is called an at fault driver and if the guilty driver does not have vehicle insurance, then in this situation the insurance company does not provide any financial help to the guilty driver, but the other person who has his vehicle insurance, the insurance company provides him financial help through claim and whatever money the insurance company gives to the victim driver, that money is later recovered from the guilty driver by the insurance company.
Recovering damages for your own car
Insurance company covers two types of points in insurance policy, first is collision and second is comprehensive. In case of collision, if you meet with an accident and your vehicle gets damaged, then in this situation insurance company compensates you for your loss, whether the accident happened due to your fault or not. And the biggest advantage of having an insurance policy is that even if you are at fault, the insurance company will compensate you. In comprehensive policy, if the vehicle gets stolen, catches fire or the vehicle gets damaged due to any natural calamity, then insurance company pays for that too.
Recovering damages from uninsured drivers
In case of an accident, a situation arises in which one driver has car insurance and the other driver does not have car insurance. In case of an accident, the vehicles of both the drivers get damaged but the insurance company will help only the person who has car insurance. The person who has not insured his vehicle, the insurance company compensates him for the loss caused in the accident which includes repairs and other expenses.
Insurance Companies Go After Uninsured Drivers When the driver refuses to compensate for the damages.
The Process of Recovering Costs from Uninsured Drivers
When Insurance Companies Go After Uninsured Drivers, they start a process to recover the money for accident loss from the at fault driver. In this, every insurance company has its own different recovery process.
Subrogation Process
If there is a collision between two vehicles and in such a case one person has car insurance but the other person does not have car insurance, then the insurance company only helps the person who has car insurance. For the accident, the insurance company follows a process called subrogation. Under the subrogation process, the insurance company gives you the claim of your insurance and after giving the claim, the insurance company takes legal action against the person who does not have car insurance. In such a case, it is important that both the drivers have insurance of their respective vehicles so that in case of any accident in future, they do not have to face any legal action.
Let us understand this thing with an example, suppose you have insured your vehicle but there is another person who has not insured his vehicle for a long time. In case of an accident or collision between you and another person, your vehicle gets damaged and you have to spend $5000. Now this expense of $5000 will be given to you first by the insurance company and later the insurance company will pay this amount. $5000 will be recovered from the person who has not insured his vehicle. If the person refuses to pay the amount of $5000 then the insurance company can also take legal action against that person.