Hit by a Driver With Expired Insurance: How Your Claim Works

If the driver who hit you had expired insurance, your claim is handled the same way as a crash with an uninsured driver. Your own policy becomes the main source of payment: uninsured motorist coverage if you have it, collision coverage if you do not, and medical coverages for injuries. The at-fault driver still owes you for the damage, but collecting from a person is slower and less certain than collecting from an insurer. Before any of that, confirm that the policy really was out of force on the day of the crash, because an insurance card and an expired policy are not the same thing.

First, confirm the policy was really expired

People often learn about the problem from the other driver's card, which shows an end date that has passed, or from the driver saying their coverage lapsed. Neither settles it. A renewed policy can sit behind an old card, and a policy canceled for non-payment can sit behind a card that still looks valid. Only the insurance company can say whether coverage was in force at the time of the accident. Cancellation also is not instant. In Texas, for example, the Department of Insurance says a company must give 10 days' notice before it cancels a policy.

So file the claim with the insurer named on the card anyway. The Texas Department of Insurance's steps for a not-at-fault accident start with photographing the other driver's insurance card and license and filing a claim with their company. If that company says there is no coverage, ask for the reason in detail and in writing, as the same guidance recommends. That letter is what your own insurer will want to see. New Jersey's Department of Banking and Insurance notes that some companies will only open an uninsured motorist claim once you have written notification from the other insurer that there is no coverage.

Do not wait for the letter to call your own company, though. New Jersey's regulator says it is in your best interest to contact your insurer immediately when there is any indication the other driver may not have had adequate insurance.

Which of your coverages pays

• Uninsured motorist coverage. Texas's insurance department says it pays if you are hit by someone who did not have insurance, and lists car repairs, a rental car, medical bills for you and your passengers, and diminished value among what it covers. Insurers in Texas must offer it, and you have to turn it down in writing.
• Collision coverage. Texas's regulator says most auto policies include collision coverage that will pay for car repairs if you are in an accident with an uninsured driver. You pay your collision deductible.
• Medical payments or personal injury protection. These pay medical bills regardless of who was at fault, where you carry them.
• Nothing on your policy that fits. Washington's insurance commissioner is direct about this case: you will need to pay for repairs and medical bills yourself and then try to get the person who caused the accident to pay you back.

The details of uninsured motorist coverage vary by state. In California, uninsured motorist property damage coverage pays for damage to your car up to a $3,500 limit, only if the uninsured driver is identified, and the state's Department of Insurance notes you may not need it if you have collision coverage. In New Jersey, the minimum limit for uninsured motorist property damage is $5,000, and drivers with only a Basic Policy have no protection if an uninsured driver damages their vehicle. Check your declarations page for what you actually bought.

Deductibles and who pays them

You will usually pay a deductible to use your own policy, and which coverage you use can change the amount. In Texas, the deductible for uninsured motorist coverage is $250, and the regulator notes that the deductible for collision is likely much higher. New Jersey applies a $500 deductible to uninsured motorist property damage claims. California offers a collision deductible waiver, which pays your collision deductible if your car is damaged by an uninsured driver who is at fault.

After paying you, your insurer can pursue the at-fault driver for what it paid. Texas's guidance says that if the company gets anything back, you might get your deductible reimbursed. With an uninsured driver that recovery is far from guaranteed, so treat any reimbursement as a possibility, not a plan.

Will this claim raise your rates?

It should not be treated like an accident you caused, but the rule depends on your state. California's Department of Insurance says that if the accident is not your fault, your insurance company does not charge you more, and that your premium can go up at renewal if you are at least 51% at fault. Other states leave more room to insurers. If your premium rises after a not-at-fault claim, ask your insurer to explain the reason in writing, and contact your state insurance department if the answer does not match the facts.

Going after the driver directly

The other driver's lack of insurance does not erase what they owe. You, or your insurer after it pays you, can demand payment and take the driver to court. In practice a driver who let a policy expire often has little to collect from, which is why your own coverage matters more than the lawsuit. Texas's regulator says that when an insurer will not pay for your damage or medical bills, your next option is to get legal help. That is especially worth doing when there are injuries.

Steps to protect the claim

• Call the police at the scene. Washington's insurance commissioner says not to leave without calling the police, even if the accident seems minor.
• Photograph the other driver's license, plate, and insurance card, even if the card looks expired.
• File with the insurer on the card and ask for any denial in writing.
• Notify your own insurer right away and ask which coverage it will use.
• Keep repair estimates, rental receipts, and medical bills together.
• Ask a lawyer about your options if you were hurt or have no coverage that applies.

The bottom line: a driver with expired insurance is an uninsured driver for claim purposes. Get the other insurer's denial in writing, then use your own uninsured motorist or collision coverage to get the car fixed, and let your insurer or a lawyer pursue the driver. The best protection is decided before the crash, by carrying uninsured motorist coverage and collision on your own policy.