What Happens If I Have An Accident And No Car Insurance? – If you don’t have car insurance protection, you could lose your driver’s license in most states. Accidents are covered under policy holders, but it can depend on who’s fault it was, or if you were hit by an uninsured driver. All motorists must carry auto coverage.
Companies usually send their representatives to the scene to audit the damage. Based upon the audit as well as your claim, a settling compensation is given, but other things can happen if there’s no coverage.
Here’s the twist: the car insurance company, based upon the policy might provide compensation for even the opposite party. This basically depends upon, which party was at fault and which wasn’t. Car owners who have coverage get some or the amount of compensation.
However the ones who do not have any insurance policy covering their cars will face quite a financially rough time.
First of all there are some state laws in accordance to which you will be fined. This happens prominently in cases where the coverage is mandatory. If your state does not make insurance mandatory, you will get away without a fine, but will have to bear the burden of repair.
Another probability that one should not forget is that the other party might sue you for damages.
After ending up in a car accident without any insurance, there are some solutions which you might use in order to get out the mess.
Salvage: A solution that is applicable for a car that has been damaged beyond repair. You can consider salvaging the car, and selling off all its spare parts.
Secured Loan: This is an option that is viable for expensive cars or cars that have suffered minor damages. Securing a loan with the help of the car and paying it off later is one option that you can strongly consider. The loan will help you pay off fines and compensations.
Repair and Resale: Considering the fact that the damage to the car has been minimal though not minor, you may also try and restore it and then sell it off. These funds can be used for fines and insurance compensations.