Can an insurance company sue an uninsured driver?
Asked by: Eryn Mante | Last update: October 25, 2025Score: 4.2/5 (45 votes)
Is it worth suing an uninsured driver?
Suing the uninsured driver might not be worth it unless they are financially capable of satisfying a judgment. After a crash with an uninsured or underinsured driver, contact a car accident lawyer about your legal options.
How likely is an insurance company to sue you?
While subrogation allows insurance providers to pursue third parties, an insurer usually cannot sue their policyholders. However, there are certain situations where an insurer may take legal action against its policyholder.
Do insurance companies sue uninsured?
While insurance companies may pursue uninsured drivers to recover claim costs, the process can be complex and time-consuming. Uninsured drivers involved in accidents should seek legal counsel promptly to protect their rights and explore possible compensation avenues.
Will my insurance go after an uninsured motorist?
Your insurance company will no stop until they get their money back. Your premium may or may not go up, but they will get their money.
Gas Station Fender Bender with Uninsured Driver
Do uninsured motorist claims go against you?
If you have an accident that is not your fault and then make a UM/UIM claim for that accident, you are within the two events allowed under this code section. The insurance company cannot raise premiums, cancel coverage or refuse to renew your policy.
What does uninsured motorist coverage not cover?
In many states, uninsured motorist coverage will only pay for bodily injury and will not pay for damage to your car. There are some states in which you can only purchase uninsured coverage for property damage if you do not carry collision coverage.
When should you sue an insurance company?
You may be able to sue your insurance company for bad faith if they intentionally neglect to perform the duties necessary according to your policy. If the insurance company knows that the claim is valid but they deny it anyway, you may be able to sue for bad faith.
Why would an insurance company sue a person?
Scenarios that involve an insurer suing a policyholder usually relate to third party liability claims. For example, a business owner might be sued for damage to a customer caused by his product, or a homeowner might be sued because his dog bites a visiting appliance repairman.
What happens if you don't pay for a car accident?
A few things could happen if you are sued for a car accident and cannot pay the resulting judgment. The court could garnish your wages, put a lien on your property, or order you to sell assets to come up with the money. If you still cannot pay, you could be sent to jail.
What happens if someone sues you and you have no money?
The plaintiff might attempt wage garnishment or bank account levies. Some defendants might be considered “judgment proof” if they have no assets. Possible Outcomes and Future Collection: Judgments remain active for several years and could be renewed.
Can I threaten my insurance company?
However, you should never threaten to harm an insurance adjuster or any employee of an insurance company.
Do you have to have a lawyer to sue an insurance company?
If you've found yourself in this situation and are considering legal action, you might be wondering if you can sue an insurance company without hiring a lawyer. It is definitely possible, but it's essential to understand the potential challenges and complexities involved.
Am I covered against uninsured drivers?
If you cause an accident and you have a comprehensive Car Insurance policy, the cost of repairing both your car and the uninsured driver's car is covered. If you only have third-party insurance, you'll have to pay for any repairs to your own car yourself, but the uninsured driver's car will still be covered.
What is the uninsured driver promise?
What is an uninsured driver promise? If your car insurance policy includes an 'uninsured driver promise' it means that, if a driver without insurance hits your car and it's not your fault, you can make a claim for repairs and you will not lose your no-claims bonus or have to pay an excess.
What is considered an uninsured driver?
An uninsured motorist is someone without auto insurance. Chances are about one in seven drivers in the U.S. is uninsured, according to a 2011 estimate by the Insurance Research Council. Uninsured motorist coverage helps you pay for damages caused by a driver who doesn't have car insurance.
What happens if someone sues you from a car accident?
If you have insurance coverage for a maximum of $25,000, for example, and the victim is awarded that or a higher amount, the insurance company will pay that first $25,000. Any amount of a jury verdict beyond that point will be your personal responsibility to pay.
Can I sue my insurance company for emotional distress?
Yes, you can sue for emotional distress under the common law standard, but it can be hard to prove. This is because you must show that the result of your claim denial caused you pain and suffering or emotional distress. This intangible loss can be more difficult to prove than, say, the cost of medical bills.
How much does it cost an insurance company to go to trial?
Outside counsel costs of anything from $100 to $300 per hour. With trials capable of running upwards of 50 to 60 hours, the insurance companies can start by facing a cost of anything from $5,000 up to $20,000, win or lose! Expert witness testimony may be required by the insurance companies to fight their case.
How long after an accident can you sue insurance company?
The California statute of limitations sets specific deadlines for filing lawsuits. For personal injury cases like car accident lawsuits, you have two years from the date of the accident. If you're dealing with damage to your vehicle but no injuries, you have three years to file.
What is an example of negligence in insurance?
Negligence is an insurance term that is tied to various types of liability insurance, such as home, life, health, business, and auto. For example, perhaps a retail shop owner was negligent by leaving their water hose out after cleaning the sidewalk, causing a passerby to trip.
What is it called when an insurance company refuses to pay a claim?
If your insurance company unreasonably delays or denies your claim, you may have a claim for bad faith.
How do insurance companies go after uninsured drivers?
To put it simply, if a driver has no insurance, your insurance company can't make a claim against them. But there are other ways to recover damages. The first option is for your insurance to subrogate the claim, meaning they'll sue the other driver.
What is the disadvantage of uninsured motorist coverage?
Some cons to consider include: Additional cost: Adding uninsured motorist coverage to your policy typically increases your insurance premium, which can be financially burdensome. It is important to weigh the benefits against the added cost and your budget.
Will my insurance go up if I get hit by an uninsured driver?
However, under California's proposition 103, insurance companies are not allowed to raise rates or drop a person because they made an uninsured motorist claim.