Experiencing a car accident and finding out the at-fault driver has no insurance can be extremely frustrating. This is especially true because Texas law mandates that all drivers maintain a minimum level of Personal Injury Protection and auto insurance coverage. However, when the responsible party lacks insurance, the process of recovering damages becomes more complex for the victim.
Understanding our fault-based insurance system
Texas operates under a “fault” or “tort” system. This means the driver responsible for the accident must cover the resulting damages. Even though Texas law requires all drivers to have PIP and auto insurance coverage, which allows policyholders to be reimbursed by their own insurance company for medical expenses, lost wages and other costs irrespective of fault, the situation becomes tricky when the liable driver is uninsured.
If the liable party has no insurance, the victim has a few potential avenues for compensation. One primary option is for the victim to sue the at-fault driver directly. This legal action can help recover both economic and non-economic damages.
First-party coverage
Victims may also rely on their own insurance policies, such as Uninsured/Underinsured Motorist coverage, to compensate for some damages. This type of coverage can provide relief when the at-fault driver lacks sufficient insurance.
Economic damages
Economic damages aim to compensate for monetary losses directly attributable to the car accident. These damages are often straightforward to calculate as they include medical bills, lost wages, property damage, etc. Documentation, such as bills and receipts, helps in quantifying these losses.
Non-economic damages
Non-economic damages, though significant, are not typically covered by PIP insurance and can be harder to quantify. They include your intangible losses, like pain and suffering.
In certain cases, courts may award exemplary damages to penalize the defendant for gross negligence or malicious behavior. These damages are punishment damages that are outside the scope of economic or non-economic damages.
Dealing with the aftermath of a car accident is challenging, particularly when the at-fault driver is uninsured. Understanding the legal landscape and available options is crucial for navigating this difficult situation.
