Is My Car Insurance Affected by an Accident with an Uninsured Motorist?

If you get into an accident with an uninsured motorist, your auto insurance provider will likely cover the costs of the damage if you carry underinsured motorist insurance, or uninsured motorist insurance. This type of insurance is required in some states, but it may be optional in yours. Make sure to check with your insurance company to find out if you must purchase this insurance on top of your standard liability or comprehensive insurance.

Here's what happens when you get into an accident with someone who isn't carrying any type of auto insurance:

Effect of Your Car Insurance Policy After the Accident
If you were at fault for the accident with someone who was underinsured, your insurance premium may increase. Your car insurance provider will need to learn about all the details of the accident, including when and where it occurred, which vehicles were involved, if any passengers or pedestrians were hurt, and other details about the incident. After reviewing your claim, the insurance company will pay for some of the damages for the other vehicle, and determine how much you are eligible for based on your current insurance coverage. This accident will go on your driving record and will bump up your insurance rates.

If the other motorist was at fault for the accident, you could consider taking them to small claims court to pay for any damages that are not covered by your insurance company, or settle for a cash payment after negotiating with them or their lawyer. You can sue the individual in a lawsuit, and the jury may decide that you are will be awarded for the pain, suffering, damages and even emotional distress from the incident. Your insurance rates may or may not go up if the accident was not your fault. Your insurance company will take a close look at your driving record and determine whether you fall under the "accident-prone" category, and when your last accident or traffic violation occurred. Ultimately, the decision will be based on your driving history.

Protecting Yourself Against Uninsured Motorists
The best way to ensure that you will receive full compensation for damages incurred after you get into an accident with an uninsured motorist is to make sure you have uninsured motorist coverage. This type of insurance allows you to collect for damages incurred from your own insurance company in the event of such an incident. Remember that some states require this type of insurance coverage, but if it is not required you will need to elect it when you fill out your insurance paperwork.

Sources:
CarInsuranceComparison.com: What happens when you get into a car accident and the other person doesn't have insurance?
CarAccidentAttorneys.com: What if an uninsured motorist doesn't have money to cover damages?
CarInsuranceRates.com: Why did my rates go up after an accident that wasn't my fault?