The Type of Insurance You Have Can Affect How Much Another Insurance Company Compensates You if Their Insured Causes an Accident
It is a no-brainer that the type of insurance an at-fault driver has will affect your compensation if they cause a car accident you are involved in. However, did you know that the type of insurance you have could affect how much their insurance company is required to pay you? Keep reading to learn about this complicated issue, and then contact Law Offices of Fernando D. Vargas at 909-982-0707 for a free legal consultation.
There Can Be Legal Complications Involved in Driving without Insurance
Not carrying insurance while you are driving can lead to devastating consequences. It can make it very difficult to recover compensation, as we will cover below, but it can also lead to criminal action such as hefty fines, suspended driving license, and even jail time. These are just a few of the reasons that you should always have insurance when driving.
Your Options Are Limited if You Do Not Have Insurance
It is against the law in California to drive a car that is not insured. If you are involved in a car accident while not insured, then you can only recover very limited damages – even if the accident was the fault of another driver who is fully insured. This is due to what are called “pay to play” insurance policies in the state.
The rules restrict the amount a victim can recover if they are injured in an accident while they are uninsured. The only type of damages that can be recovered are economic damages, such as property damage and medical costs. You cannot recover non-economic damages, such as pain and suffering.
What to Expect if You Are at Fault for an Accident While Uninsured
If you are entirely or partially at fault for an accident you are involved in while uninsured, you will be responsible for your expenses and the out of pocket expenses of other victims too. Even if the victims have uninsured motorist insurance, they can still sue you. If you have a home, they could put a lien on it or go about other ways of debt collecting.
What to Expect if You Are Driving a Car That Belongs to Someone Else
If you are involved in an accident while driving someone else’s car, you are covered by their insurance policy. This is true even if you are not insured yourself. Keep in mind that this is only true if they permit you to drive their car – you would not be covered if you took someone else’s car for a joy ride. However, the insurance generally follows the vehicle – not the person who is driving.
If you have been involved in a car accident and require help from an experienced personal injury attorney, contact Law Offices of Fernando D. Vargas at 909-982-0707 now for a free legal consultation.