What happens if the at fault driver has no insurance?

Answer 1

Depending on the State, the motor vehicle authorities may suspend the license and registration of the At Fault driver. However, this usually first requires that the at fault driver be found guilty of a moving violation and that damages exceed a stated, statutory amount. The suspension usually lasts for a limited period of time, and the driver can regain his/her license and tags by posting a bond with the motor vehicle authorities. The bond often gets returned if the authorities do not get notice within a requisite period of time that suit has been filed. The matter will proceed either to a default judgment, or, if the adverse party contests liability or damages, to trial.

If the innocent driver has insurance, he/she may make a claim against his/her insurer, under the "uninsured or underinsured motorists coverage (UI/UM)". That insurer will, in the course of things, pay the claim, and thereby "inherits" the right of action of its insured to the extent of its payment. That process is called "subrogation". The insurer may file suit against the adverse driver to recover its payment. That insurer has no greater rights against the adverse party than its insured did, and any negligence attributable to the insured will be attributed to the insurer. Therefore, the insurer may not recover 100% of its payment.

Once a judgment is entered, the license and tags of the at fault party may be suspended until the judgment is paid. That person will generally be required to maintain a special kind of higher-risk liability insurer for a number of years thereafter in order to get/keep his/her license.