Car Accident, No Insurance?

Car Accident, No Insurance?

Car Accident, No Insurance? Here’s What You Need to Know

If you have suffered the unfortunate event of a car crash and lack state required insurance, you may be liable to pay a hefty fine even if you are not the guilty party.

 Most states require valid vehicle cover. If you are in a car crash, regardless of who is at fault, and fail to produce proof of updated insurance, you will have to settle significant penalties. If you have not protected your motor vehicle and involved in accidental damage, the following guide can shed some light on the issue.

When You Have Caused the Accident

States Requiring No-Fault Cover

If you live in a no-fault state, you will need to pursue compensation for personal injuries from your own insurance when a car accident is sustained. This means that the affected party will not be able to file a suit against you, even if you caused the accident, they cannot claim directly from you. These states will only allow the pursuit of a case where injuries are deemed significant and medical costs total $20 000 or more. Unfortunately, if you do not possess cover and you cannot afford to pay these costs, the court will proceed with penalties. It is in your best interest to hire an attorney who can provide sound legal advice and court representation.

States that Do Not Follow No-Fault Systems

A city that does not implement the no-fault form of cover is referred to as a Tort state. In these regions when you have caused a car crash, the injured party will have the right to pursue a case and claim the full amount for damages from medical expenses and emotional trauma to lost wages and asset damage. Where the necessary form of vehicle insurance is not available, you are financially liable for the full claim. The process can go as far as claiming from your monthly salary if the court rules against you.

When You Have Not Caused the Accident

Oregon, California, Michigan, Alaska, Oklahoma, Kansas and New Jersey are some of the states that possess a no pay and no play system where pursuing compensation if you are a victim of a car crash, without cover, is limited. The problem of failing to possess even the minimum amount of car insurance is when another driver causes the accident, you may not be able to move forward with a claim for damages. Unfortunately, a lack of the stipulated coverage will severely restrict the compensation you can receive. This is based on the notion that you should not have the benefit of seeking rewards from another party with insurance if you do not have your own. A court may only award settlement where severe medical injuries are sustained.

The Limitations of Being Without Car Insurance

Exercise precaution if you decide not to take out the most affordable or minimal state required car insurance. Many regions may issue criminal charges, judgements and exorbitant expenses if you are caught without up to date cover. There is the possibility of losing your driver’s license. Stay up to date and protect your financial interests with cost effective car cover.

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