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Auto Insurance Claims/no insurance wreck

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Expert: - 5/16/2009


Question
I recently had trouble with my primary vehicle and had to buy another.  I didn't get insurance yet because I was waiting to pay day.  Yesterday I slid in the rain and was in an accident.  They had insurance and I didn't.  I added my vehicle(which was in the accident) to my current insurance today.  I have to go to court in a few weeks.  This is my first wreck ever.  I am just wondering what will happen especially since I didn't have insurance at the time of the wreck.  Will I get sued, lose my license, put in jail, or all three?  Please help? Any advice or some guidance would be well appreciated.

Answer
This will depend on the language in your policy.  Some policies will provide coverage for an added vehicle or a replacement vehicle automatically for a set period of days after you buy it.  But there are requirements about how quickly you need to ninform the insurer of buying the car.

You need to have an honest conversation with your agent or claim rep and explain exactly what happened.  Then they can determine whether you will be covered.  Do not lie under any circumstances.  This is insurance fraud and it is a felony.  If you already lied, come clean now and they will not pursue you criminally.  Also, misrepresenting facts can void your policy and defeat the purpose of the lie, so don't do it.

If you did not have coverage at the time of the loss, you will probably receive a fine and possibly a license suspension, but not jail time.  Depends on your state law and how aggressive they are in your area.  The insurer of the other driver will subrogate against you, which means they will ask you to pay back what they paid to cover their insured's damages.  If you can work out a payment plabn, they will work with you.  They do not want to sue you because it costs them money and they probably won't get much back.  But if the damages are severe, and you cannot pay, you may need to file bankruptcy after the case resolves.

Auto Insurance Claims

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Claims Guy

Expertise

I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer......I can answer questions related to any aspect of Automobile insurance claims and coverages. I can provide an inside look at how insurers operate. I always treat my customers fairly and want to help make sure you are treated fairly. However, please keep in mind that being treated fairly according to the law does not guarantee that you will get what you want. I can also answer some questions regarding Homeowner's and other types of insurance claims. I have handled all types of auto insurance claims and coverages. I am NOT an automotive repair expert but can give advice re how insurers handle complex repair issues. Please keep in mind that every state has its own set of laws pertaining to rules of the road, liability, and insurance. No one is an expert on every state. I am most familiar with laws in Maryland, DC, West Virginia, and Virginia, but will attempt to answer questions for other states. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Experience

I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Organizations
CPCU Society. Adjusters license in multiple states. International Association of Specal Investigators

Education/Credentials
I have a B.S. in Finance and have completed the AIC and CPCU designations.

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