What Happens If the Other Driver Has No Insurance?

First, protect yourself at the scene

The Washington State Office of the Insurance Commissioner's guide for people hit by an uninsured driver says to call 911 if anyone is hurt, not to leave the scene, and to call the police even if the crash seems minor. It also suggests photographing the damage and collecting the other driver's and vehicle's information without getting in the way of police or emergency responders.

A police report matters more than usual here. It records who was involved and what happened, and your insurer will likely ask for it. If you don't know how long you have to report a crash where you live, see our guide to how long you have to report a car accident in each state.

Which of your own coverages might pay

The insurance regulators in Texas and Washington explain which of your own coverages can come into play when the other driver is uninsured.

Uninsured motorist (UM) coverage. The Texas Department of Insurance (TDI) says it is "like buying an extra insurance policy to cover you when the driver who caused the accident didn’t have enough insurance." TDI lists what UM/UIM coverage can pay for in Texas: vehicle repairs and property in your car, a rental car, medical bills for you and your passengers, pain and suffering, and diminished value if your car is worth less after the crash.

Underinsured motorist (UIM) coverage. This is for a driver who has insurance, but not enough. TDI describes the problem it solves: the driver who caused the accident "doesn’t have insurance or doesn’t have enough insurance."

Collision coverage. TDI says most auto policies include collision coverage "that will pay for car repairs if you’re in an accident with an uninsured or underinsured driver." Washington's insurance commissioner notes that if you don't have UM coverage, collision may still pay for your car's damage.

Medical payments and PIP. TDI says your auto policy "might have medical payments and personal injury protection coverages that will pay medical bills." Washington's insurance commissioner says you can use personal injury protection (PIP) for injuries related to the accident.

Health insurance. If you have none of these auto coverages, Washington's guide says you may have to pay for repairs, a rental car and medical bills yourself, unless you have health insurance for the medical bills.

TDI also points out that collision, medical payments and PIP may fall short if you have an expensive car or need long-term medical care.

Deductibles can be different

Deductibles for these claims are set by your policy and your state, so check yours. Two examples from state regulators:

• TDI says: "The deductible for uninsured/underinsured coverage is $250." It adds that a collision deductible is usually much higher.
• The New Jersey Department of Banking and Insurance says: "All Uninsured and Underinsured Motorist Property Damage claims require you to pay a $500 policy deductible."

Fault still matters

Having UM coverage doesn't mean your insurer pays automatically. New Jersey's insurance department explains that your insurer stands in the other driver's shoes, so the other driver must be legally at fault. Under New Jersey's comparative negligence rule, your payment can be reduced by your share of the fault, and you can't recover if your fault is greater than the other driver's.

This is one reason to be careful with what you tell any insurance adjuster, including your own. Our guide on what not to say to insurance after a car accident covers the common traps.

If it was a hit-and-run

When the driver drives off and can't be found, the rules depend on your state and policy:

• TDI says uninsured/underinsured motorist coverage "also pays if you’re in a hit-and-run accident and the other driver can’t be found to pay for damages."
• Washington's insurance commissioner says UM coverage may cover hit-and-run and "phantom vehicle" crashes, where a vehicle causes injury or damage without touching yours. It warns: "You must report a phantom vehicle accident to the police within 72 hours if you're making an auto insurance claim."
• New Jersey's insurance department says that for property damage, you generally can't file an uninsured motorist claim for a hit-and-run ("phantom") vehicle, and may need to use collision coverage instead.

Report a hit-and-run to the police right away and tell your insurer promptly.

If the other driver had some insurance, but not enough

New Jersey's insurance department describes the usual order for an underinsured claim: you first claim against the other driver's insurer, then take the unpaid balance to your own insurer. It also says you need your own insurer's permission before you settle with the other driver's company. Settling first without that permission could put your UIM claim at risk, so check your policy before you sign anything.

Is uninsured motorist coverage required?

It depends on the state. In Texas, TDI says insurance companies must offer UM coverage when you buy auto insurance, and "If you don't want it, you have to turn it down in writing." If you aren't sure whether you have it, your declarations page will list it.

What happens to the uninsured driver?

States have their own penalties for driving without insurance. For example, the California DMV says a driver or owner who can't show financial responsibility (insurance or another approved proof) for a reportable crash can have their driving privilege suspended under California Vehicle Code § 16070, for at least one year.

The penalty for the other driver doesn't pay your bills. But you can still try to recover your costs from them directly. Washington's guide says that if you have to pay out of pocket, "Then you can try to get the person who caused the accident to pay you back for those costs." Whether that is worth doing depends on what that person can actually pay.

Watch the deadlines

Insurance policies have notice requirements, and lawsuits have time limits (statutes of limitations) that vary by state. New Jersey's insurance department warns that you must accept a final settlement or file suit within the statute of limitations, or you may lose any settlement. Don't wait for a claim to resolve on its own before checking your deadline.

What to keep

Start a folder with:

• The police or crash report number
• Photos of the vehicles, the scene and your injuries
• The other driver's name, plate, vehicle and any insurance details they gave
• Your own policy and declarations page
• Medical records and bills, repair estimates and rental receipts
• Every letter, email and claim number from any insurer

Our car accident records checklist walks through each one.

The bottom line

When the other driver has no insurance, your own coverage usually does the heavy lifting. Read your policy, report the crash, tell your insurer promptly and keep your records. If you were hurt and aren't sure what your options are, you can request a free case review.

This is general information, not legal advice. Ask Legal Matters is a free case-review request service, not a law firm.

Sources

• Washington State Office of the Insurance Commissioner, "What to do if you're hit by an uninsured or underinsured driver": https://www.insurance.wa.gov/insurance-resources/auto-insurance/auto-insurance-claims/what-do-if-youre-hit-uninsured-or-underinsured-driver
• Texas Department of Insurance, "What is uninsured motorist coverage, and do I really need it?": https://www.tdi.texas.gov/tips/uninsured-motorist-coverage.html
• New Jersey Department of Banking and Insurance, Insurance Claims Ombudsman, uninsured and underinsured motorist property damage claims: https://www.nj.gov/dobi/ins_ombudsman/wysk3.htm
• California DMV, Financial Responsibility (Insurance): https://www.dmv.ca.gov/portal/driver-education-and-safety/dmv-safety-guidelines-actions/financial-responsibility-insurance/

Sources checked November 9, 2026.

Find the right local record source

Use the state hub for statewide agencies and the community directory to locate the place where the incident happened. The agency that responded may differ from the nearest city.