Is Suing an Uninsured Driver Worth It?

Getting into a car accident is stressful under any circumstances, but learning that the at-fault driver doesn’t have insurance can turn an already difficult situation into a financial nightmare. Many accident victims are left wondering whether it’s even worth pursuing legal action, especially if the likelihood of recovering compensation is uncertain.

At Solnick Lawyers, our experienced Pennsylvania car accident lawyers understand how frustrating these cases can be. In this article, we break down what happens when you’re hit by an uninsured driver, examine whether it’s worth suing them, and explain what other options might be available to help you recover financially.

What Happens If You’re Hit By an Uninsured Driver?

When it comes to payment of accident-related medical expenses, Pennsylvania is a “no-fault” state, which means your initial medical expenses are typically paid through your own Personal Injury Protection (PIP) benefits, regardless of fault. Under Pennsylvania law, every auto insurance policy is required to include at least $5,000 in PIP coverage, but serious injuries can quickly exceed that amount.

If the other driver is uninsured and your medical expenses go beyond PIP limits, you may be able to file a claim under the uninsured motorist (UM) coverage available from your own personal automobile insurance policy, but only if you selected and paid for that type of (optional) coverage. This optional coverage can help with excess medical expenses, lost wages, and pain and suffering if you are injured due to the negligence of an uninsured driver or a driver who fled the scene and cannot be identified.  

However, not all insurance policies include UM coverage, as it must be affirmatively elected when you purchase your insurance policy, and even if it is included, insurers may undervalue or deny legitimate claims. Moreover, some policies have strict requirements for UM coverage, such as timely reporting of the accident to the police.  If your policy does not include UM coverage, your options become more limited. You might be in a position to file a lawsuit against the uninsured driver, but that comes with some challenges, and doing so is not always advisable (which we’ll discuss in the next section).

Regardless of insurance issues, you should treat a crash involving an unknown or uninsured driver like any other accident, especially in the initial stages:  Call the police, get medical attention, gather evidence, and avoid discussing fault at the scene. Taking these steps can preserve your ability to file a claim and seek compensation down the line.

The Challenges of Suing an Uninsured Driver

Filing a lawsuit may seem like a logical step, but it is not always worthwhile or advisable to file a lawsuit against an uninsured driver. Consider the following:

Most uninsured drivers can’t pay

As a practical matter, drivers who do not carry insurance often cannot afford it, and probably cannot afford to compensate you either. Even if you win in court, collecting on a judgment is difficult or impossible if the defendant has no attachable income or property.  

Bankruptcy can erase judgments

Many uninsured drivers will respond to a civil judgment by filing for bankruptcy. In most cases, personal injury damages from ordinary negligence are dischargeable debts, which means you could go through litigation only to see the claim wiped out entirely.

Litigation takes time and money

Filing a lawsuit comes with court filing fees, administrative costs, and maybe even expert witness fees. And while most Pennsylvania car accident lawyers work on a contingency basis, other expenses still add up. If the at-fault driver lacks resources, your net recovery could wind up being negligible or nonexistent.  Likewise, the litigation process is time-consuming and can be stressful, which might add to the stress you are experiencing due to your injuries.  Without the likelihood of a financial recovery, the stress of dealing with the litigation process may not be worth going through.

Proving fault is still required

A lack of insurance doesn’t prove negligence. You’ll still need to show that the other driver caused the accident through careless or reckless behavior. That requires evidence (police reports, witness statements, photos, and medical documentation), which takes time to gather and present.  Again, this process is necessary to pursue a claim, but it is complicated, time-consuming and may cause you stress and aggravation.  Accordingly, without the prospect of an eventual monetary recovery, this type of claim may not be worth pursuing.

When Suing an Uninsured Driver Might Be Worth It

While most lawsuits against uninsured drivers do not result in a meaningful recovery, there are certainly situations in which legal action is worth considering.

First of all, not every uninsured driver is broke. Some individuals own property, earn significant income, or operate businesses but choose not to carry coverage. Others may have allowed their coverage to lapse, either deliberately or by accident. If your attorney can verify assets, they may recommend you file a lawsuit and record a lien or negotiate a payment plan through the court system.

If the at-fault driver was working when the crash occurred, their employer may be responsible under the legal principle of respondeat superior, which holds employers liable for the actions of their employees performed within the scope of their employment. For example, an uninsured delivery driver or contractor may expose their company to liability after an accident, and commercial liability insurance policies typically have higher coverage limits than individual plans.  Along the same lines, while it may not be practical to pursue a claim against an uninsured individual, pursuing a claim against a financially stable company may be worthwhile, depending on the circumstances.

In some cases, even when you have UM coverage, it is necessary to also sue the uninsured, negligent driver because doing so is required under the terms of your insurance policy.  In that regard, some insurance policies require that you file such a lawsuit, as it protects the insurance company’s rights to recover from the uninsured driver if they pay out on the UM claim.  Also, suing the uninsured driver may help support your UM claim, as a finding of liability against the driver may strengthen your claim and/or negotiating position with your insurance carrier, depending on the circumstances. 

If the other driver acted with extreme recklessness, such as DUI, excessive speeding, or road rage, you may be entitled to punitive damages, and the judgment may survive bankruptcy. These cases are more complex but can result in higher awards, especially if criminal charges support your civil claim.  However, even if the judgment may survive bankruptcy, it is still only worth pursuing if there is a likelihood of collecting a judgment, which is typically not the case when dealing with a party that does not have significant assets. 

Other Ways to Recover Compensation Without a Lawsuit

In most cases involving an uninsured driver, it is not advisable to sue the uninsured driver, given the difficulties in actually making a recovery, but it is important to explore the available options, including pursuing a UM claim if possible, or pursuing claims against other possibly responsible third parties. 

First and foremost, if your policy includes uninsured motorist coverage, filing a claim with your insurance company is almost always the best option. UM can cover not just medical expenses and lost wages, but also pain and suffering, which are not included in basic no-fault benefits. However, insurance companies may still dispute your claim, and there are specific requirements that must be followed when pursuing this type of claim.  Also, in some cases, your insurance company may understate the amount of UM coverage that is available to you.  For all of these reasons, having an experienced personal injury lawyer handle your UM claim is almost always a wise decision.

Pennsylvania requires PIP coverage of at least $5,000. This pays for your immediate medical bills, regardless of who caused the accident. But it doesn’t cover pain and suffering or extended income loss, which is where UM coverage (or litigation) may come into play.

If your auto coverage falls short, your health insurance may cover accident-related treatment after your PIP is exhausted. If you’re out of work for a longer period, short or long-term disability insurance can offer income replacement. These policies usually involve separate deductibles, copays, and preauthorization requirements, but they can provide needed support.

Third-party liability claims

Lastly, in some cases, someone other than the uninsured driver may share in legal responsibility for a collision, for example:

• If a bar or restaurant overserved an intoxicated driver, you may have a dram shop claim
• If the crash was caused by vehicle defects, the manufacturer could be liable
• If road conditions contributed, a government agency might be at fault
• If the uninsured driver was working or carrying the business of a company, either as an employee or contractor, it may be possible to hold the company responsible

These third-party claims are fact-specific and require thorough investigation, but they can open the door to finding insurance coverage. Your personal injury attorney will examine all potential sources of liability in order to seek the maximum possible compensation.  At the same time, an experienced attorney can confirm for you that pursuing such a claim is simply not advisable.

Let an Experienced Pennsylvania Car Accident Lawyer Help You

If you’ve been in a car accident with an uninsured driver, do not try to deal with the legal and insurance complications by yourself. The experienced Pennsylvania car accident lawyers at Solnick Lawyers can help you understand your rights, evaluate your recovery options, and pursue the compensation you deserve. Contact us today for a free consultation.  Put Solnick Lawyers on your side!