What if the At-Fault Party Doesn’t Have Auto Insurance?

Auto accidents happen every day, and when they do, the most important thing is that everyone involved escapes the accident without getting hurt. But even minor car crashes can cause serious, or catastrophic, injuries that may require expensive medical treatment and ongoing care. If you’re involved in an auto accident and the other driver is at fault, at least you can rely on their insurance policy to pay for the damage their negligence caused, right?

Maybe not. The situation can get complicated really quickly if the at-fault driver does not have auto insurance.

If you or a loved one are involved in a motor vehicle accident with a driver who doesn’t have auto insurance, it is generally in your best interest to seek legal counsel from an experienced car accident lawyer in Tuscaloosa.

What’s supposed to happen after a car accident in Alabama?

When a car accident occurs and law enforcement is notified, all drivers involved are required to provide their license, vehicle registration, and proof of valid auto insurance to the police. The information is recorded in the accident report prepared by the responding police officer, and the drivers are responsible for notifying their auto insurance provider according to the timeline required by that insurance company. While it is always important to ensure that an accident report is accurate, that is especially true when the person who caused the accident does not have insurance.

Like most states in the U.S., Alabama has a tort, or “fault” system. This means that if an auto accident occurs, anyone injured in the crash must first seek compensation from the liability insurance of the driver who caused the accident.

If the at-fault driver is uninsured or underinsured, you may need to look elsewhere for compensation for your injuries and damage to your vehicle, such as:

• The at-fault driver’s personal finances. Typically, if a driver does not have auto insurance or is not carrying a high enough auto insurance policy to cover a reasonable amount of damages, it is because they cannot afford the payments. This does not indicate that a person has a significant amount of personal wealth that your legal representation would be able to target as potential compensation for you.
• Responsible third parties. After thoroughly reviewing the details of the accident, a skilled Tuscaloosa car accident attorney experienced in handling cases involving uninsured drivers may identify third parties whose negligence may have contributed to the accident. This could include:
  • Other drivers’ insurance, if the accident involved multiple vehicles.
  • A bar or restaurant that may have overserved the other driver or served a driver who is underage.
  • The car manufacturer or parts manufacturer if any parts of the vehicle were defective due to production errors, design flaws, or mechanical failure.
• Uninsured/underinsured driver coverage. Your own auto insurance policy should include coverage specifically for a situation like this. Uninsured/underinsured driver coverage is intended to help cover your medical expenses or other costs related to an auto accident caused by a driver who is uninsured or whose policy is not high enough to cover your expenses. If the uninsured at-fault driver’s personal finances indicate that a lawsuit would be a waste of time and if there are no third parties who may be partially negligent for the accident, then your best bet to recover compensation for the accident may be the uninsured/underinsured driver coverage in your own auto insurance policy. It all depends on the details of your case. It is in your best interest to see legal counsel from an experienced Tuscaloosa car accident lawyer before deciding how to move forward.

Isn’t it illegal to drive without insurance in Alabama?

It sure is. Alabama’s Mandatory Liability Insurance Law, originally enacted in 1975, states that “no person shall operate, register, or maintain registration of a motor vehicle designed to be used on a public road or highway unless it is covered by a liability insurance policy.”

The minimum liability insurance limits in Alabama are often referred to as “25/50/25,” meaning the minimum liability limits are:

• $25,000 bodily injury liability limit per person.
• $50,000 maximum for all bodily injuries to be paid for any one accident.
• $25,000 maximum for property damage per accident.

Anyone who drives without auto insurance in violation of the Mandatory Liability Insurance Law is subject to a $500 fine for the first offense and up to a $1,000 fine for the second or subsequent violations of the law. Additionally, their motor vehicle registration will be suspended and proof of valid auto insurance plus a $200 fee will be required for the first reinstatement of their vehicle registration and a $400 fee for the second or subsequent reinstatements.

However, even with the threat of these penalties, some drivers simply do not comply with the law. In fact, a 2023 study by the Insurance Information Institute found that in 2022, 14% of drivers – approximately one in every seven – were uninsured nationwide. That number was slightly higher here in Alabama, where the estimated percentage of uninsured drivers in 2022 was 14.2%, with the state ranking at number 20 out of all 50 states.

Why do they do it? Some drivers allow their auto insurance policy to lapse due to non-payment, others are dropped by their insurance company for being involved in too many accidents, and then there are drivers who never bothered to secure auto insurance in the first place. All of these scenarios are illegal; they are also highly problematic if you or a loved one have the misfortune of being involved in an auto accident with that driver.

Contact Prince Glover Hayes today

If you or a loved one were involved in a motor vehicle accident caused by an uninsured driver, it is in your best interest to seek legal counsel from an experienced car accident lawyer like those at Prince Glover Hayes in Tuscaloosa. Our skilled car accident attorneys can guide you through the legal process and work to secure compensation for you even when the at-fault driver is uninsured. Give us a call today or complete our online contact form to schedule a free consultation.