What Happens If You Have a Car Accident Without Insurance?
All states require car insurance except New Hampshire and Virginia, which allow its drivers to choose alternatives. In states where car insurance is mandatory, driving without one is a criminal offense with penalties varying with jurisdiction.
In Maine, failure to produce proof of insurance is an infraction, attracting a fine of between $100 to $500 and an indefinite license suspension until you can produce proof of insurance.
Driving uninsured in Maine becomes a bigger problem if you get in an accident. This guide discusses what to expect if you are in such a situation, and it can be an excellent read with tips on handling it.
When You Are Not at Fault
Driving without insurance coverage is illegal in Maine. If you are involved in an accident while uninsured, the authorities will discover the violation and you may face applicable penalties.
However, not having insurance coverage does not disqualify you from filing a personal injury claim against the at-fault party. So you need to handle it just like you would any other accident.
So get medical help, notify the police, document the scene, and most importantly, get a knowledgeable local lawyer. For example, if an accident occurs in Portland, your best chance of recovering fair compensation will be working with a Portland car accident lawyer.
When You Are at Fault
Things get messier when you are at fault because besides facing penalties for your violation, you will still have to compensate the victim with out-of-pocket cash. Another cost will be hiring a personal injury lawyer to help with your defense. “Insured drivers do not have to hire a personal injury lawyer if sued. Their insurers do the heavy lifting since liability falls back on them,” says Portland car accident lawyer Benjamin Gideon of the Gideon Asen LLC.
Having to compensate an accident victim with out-of-pocket cash can have severe financial ramifications. If you do not have liquid cash to cover damages, the opposing side can come for your assets, including future income.
Maine is a modified comparative negligence state that holds each party in an accident responsible for their contribution to an accident. As such, you could explore this option to reduce your portion of damages.
What if an Uninsured Driver Hits You?
Seven percent of Maine drivers are uninsured. So, there is almost a one-in-ten chance that an accident will involve an uninsured driver. Under such circumstances, you may have to go against the uninsured driver directly. Unfortunately, there are no guarantees in claims filed against uninsured drivers, and most personal injury lawyers will not take up such cases.
If you are insured, you may turn to your underinsured (UI) or uninsured motorist (UIM) coverage to recover damages. The minimum UI/UIM coverage requirement for Maine drivers is $50,000 per person and $100,000 per accident. Purchasing higher limits if you can afford it is recommended as it assures you more protection.
Other Reasons You Shouldn’t Drive Without Insurance in Maine
Besides the reasons cited above, such as criminal penalties and the financial implications of getting in an accident without insurance coverage, there are other reasons why driving without insurance may work against you.
For example, you may have to pay higher premiums to have your license reinstated, as an insurer can use your action to rate you as a risky driver. Also, you must have an SR22 certificate as proof of carrying minimum coverage when seeking a license reinstatement. Typically, the SR22 insurance stays on your licensee for three years, which means three years of pretty expensive insurance premiums.
