How should you handle an accident with an uninsured driver?

Despite your many precautions while navigating New Jersey’s roads, you may become involved in an accident with an uninsured driver. Would you know how to handle the situation?

HowStuffWorks offers insight on what happens and what to do after a car accident with an uninsured driver. Learn your options for recourse and how state insurance requirements affect your options.

State insurance laws

New Jersey is one of the few “no-fault” insurance states. That means that no matter if the other driver has insurance, you must file a claim with your own insurance company after an accident to cover your damages. That does not mean that you cannot sue the other driver for medical bills, car repair bills and other costs resulting from the accident. You may be able to take legal action against the at-fault party if you sustained serious injuries that outpace your current insurance premiums.

Uninsured/Underinsured motorist coverage

If you do not already have it, now is the time to look into adding uninsured/underinsured motorist coverage to your auto insurance plan. That way, you have another financial resource to tap if your accident damages are too expensive for your premium limits.

Legal action

Without un/underinsured coverage, you may feel that you have no choice but to sue the other driver to recover damages. Even if you win your case in court, the responsible party may not have the assets necessary to cover the legal judgment. The other driver may file for bankruptcy after the verdict, removing her or his responsibility for paying the judgment. Either way, your medical bills, lost wages and car repair costs remain unresolved.