You knew by law you need at least liability coverage in your auto insurance policy, but you chose to drive without it. The question is—what happens if you happen to be in an auto accident while driving without insurance. Truthfully, it depends on what state you live in and who caused the accident. If you make a habit of driving without insurance, it is certainly worth taking the time to learn more.

Living in a No-Fault State

In no-fault states, your own insurance will pay for some of your medical costs. If you don't have insurance, you can still make a claim on the other party's insurance. You will only get a limited payout, however, because the other party's insurance company will expect your own company to pay for some of the costs.

There is the option of filing a personal injury case against the other driver if they caused the accident. This may help you recover the lost wages and medical costs that you have to pay on your own because you don't have insurance.

Remember, the other driver can also make a claim on your insurance. This is regardless of actual fault or if the fault is unclear. When it comes to giving insurance details, you will need to admit that you don't have any insurance and give your own details. However, the good news is the other person can't name you as a defendant in a case, despite you not having insurance.

Living in a Fault State

When the accident was the fault of the other driver and you're in a fault state, you're in luck. The other driver will need to give you their details, and you can make a claim to recoup the full cost.

If the accident was your fault or it is unclear, you will need to admit that you don't have insurance. The police may be involved at this stage, depending on the severity of the accident. This could lead to you being arrested for driving without insurance.

The other driver will need to file a claim under the "uninsured driver" portion of his/her policy. Not all drivers will have this part of a policy, so they'll usually need to file a personal injury suit against you. If the driver does have the policy, the insurance company will likely come after you to recoup the costs.

It is a legal offense to drive without any auto insurance. Make sure you have enough to cover the event of an accident, whether you're in a fault or no-fault state. For more information about auto insurance coverage, contact an agency like Mid-Alliance Insurance Associates LLC.