Yes, insurance companies pursue uninsured drivers, but the process and your recovery depend on what coverage you have

When an uninsured driver causes a collision, your insurance company will investigate and may pursue that driver through a process called subrogation. This means your insurer tries to recover the money it paid you from the at-fault driver's personal assets or future income. However, whether you actually recover anything depends on your coverage type, the driver's financial situation, and whether your state allows subrogation in your case.

The practical reality: most uninsured drivers have few assets to recover. Your insurance company will pursue them if the claim is large enough to justify the legal cost, but smaller claims often go uncollected. Your own recovery depends first on what coverage you purchased before the crash.

Key Takeaways

  • Uninsured motorist coverage protects you if an uninsured or hit-and-run driver causes the crash, and your insurer will pursue that driver to recover what they paid you.
  • Collision coverage pays for your vehicle damage regardless of the other driver's insurance status, but does not give your insurer a right to pursue the uninsured driver.
  • Your insurance company will only pursue subrogation if the claim is large enough to justify the legal cost, which typically means several thousand dollars or more.
  • Even if your insurer wins a judgment against the uninsured driver, collecting the money depends on whether that driver has wages, bank accounts, or property the court can seize.
  • Some states limit or prohibit subrogation against uninsured drivers, so the rules depend on where you live and where the crash occurred.

How subrogation works when an uninsured driver causes the crash

After you file a claim, your insurance company investigates the accident to determine fault. If the uninsured driver is found at fault, your insurer pays your claim under your uninsured motorist coverage or collision coverage. At that point, your insurer has the legal right to pursue the uninsured driver for reimbursement—this is subrogation.

Your insurer will typically send a demand letter to the uninsured driver, asking them to reimburse the claim amount. If the driver ignores the letter or refuses to pay, your insurance company can file a lawsuit. The insurer becomes the plaintiff, not you—you are not involved in the courtroom. Your insurer must prove the uninsured driver was at fault and quantify the damages.

If your insurer wins the judgment, they can attempt to collect through wage garnishment, bank account levies, or liens on property. The uninsured driver may also be required to carry an SR-22 form (proof of future insurance) in states that mandate it, which can make driving more expensive for them going forward.

Which of your coverages triggers pursuit of the uninsured driver

Your coverage type determines whether your insurer has the right to pursue subrogation. Uninsured motorist coverage is the primary trigger. When you use this coverage, your insurer steps into your shoes and has the legal right to recover from the at-fault uninsured driver. This is the coverage designed specifically for uninsured driver crashes.

Collision coverage also allows subrogation in most states. You pay a deductible, your insurer covers the rest of your vehicle damage, and they can then pursue the uninsured driver. However, some states restrict subrogation for collision claims, so the rules vary by location.

Liability coverage does not trigger subrogation because liability covers damage you cause to others, not damage to you. If you have only liability coverage and an uninsured driver hits you, you have no coverage and no insurer to pursue the other driver on your behalf.

Why most uninsured driver cases do not result in payment

Insurance companies pursue uninsured drivers selectively. A claim must be large enough to justify the cost of investigation, demand letters, and potentially a lawsuit. For a vehicle damage claim under $5,000, the legal cost often exceeds what the insurer could recover, so many insurers do not pursue it. For bodily injury claims or total loss claims, pursuit becomes more likely.

Even when an insurer pursues a case, collection is the real obstacle. An uninsured driver is often uninsured because they lack financial resources. A judgment against someone with no job, no bank account, and no property is difficult to enforce. Your insurer can place a lien on a house or garnish wages, but only if those assets exist and the court can locate them.

Some uninsured drivers file for bankruptcy after a judgment, which can discharge the debt entirely. Others straightforward move or change jobs, making collection impossible. Your insurer may eventually write off the debt as uncollectible.

State rules that limit or prevent pursuit of uninsured drivers

Several states restrict subrogation against uninsured drivers, which means your insurer cannot pursue them even if they caused the crash. California, Louisiana, and North Carolina prohibit or severely limit subrogation in uninsured motorist claims. In these states, your insurer pays your claim but cannot recover from the uninsured driver—the loss stays with you and your insurer.

Other states allow subrogation but only under certain conditions. Some require that the uninsured driver be convicted of a traffic violation before subrogation is permitted. Others allow it only if the uninsured driver has assets above a certain threshold. Your state's insurance department website lists the specific rules for your location.

If you live in a state that prohibits subrogation, this is another reason to carry uninsured motorist coverage with a high limit. Your insurer cannot recover the money from the uninsured driver, so the coverage itself is your only protection.

What you should do if an uninsured driver hits you

Report the crash to your insurance company when ready, even if you are unsure whether the other driver is uninsured. Provide your insurer with the other driver's name, contact information, vehicle details, and any witness information. If the police responded, get the report number. Your insurer will verify the uninsured status through state motor vehicle records.

Do not negotiate directly with the uninsured driver or accept a cash settlement without involving your insurer. If you settle privately and then file a claim, your insurer may deny coverage or reduce your payout. Let your insurer handle the claim and any pursuit of the other driver.

If you do not have uninsured motorist coverage or collision coverage, you have no recovery option through insurance. In that case, you can pursue the uninsured driver directly in small claims court (for vehicle damage under your state's limit, usually $5,000 to $10,000) or file a lawsuit in civil court. However, winning a judgment and collecting are your responsibility, not your insurer's.

How your deductible affects what your insurer recovers

When you file a claim under uninsured motorist or collision coverage, you pay your deductible first. If your deductible is $500 and the damage is $3,000, your insurer pays $2,500. When your insurer pursues subrogation, they recover the $2,500 they paid, not the full $3,000. You do not get your deductible back unless the insurer recovers more than the full claim amount, which is rare.

Some states have deductible waiver provisions that allow your insurer to waive your deductible if they successfully recover the full claim amount through subrogation. This is not automatic—you must ask your insurer whether this option is available in your state and whether your policy includes it. If it does, your insurer will refund your deductible once they collect from the uninsured driver.

Frequently Asked Questions

Can I sue an uninsured driver myself if my insurance company will not pursue them?

Yes. You can file a lawsuit in civil court or small claims court against the uninsured driver directly. However, you must prove they were at fault, and you bear the cost of the lawsuit. Even if you win, collecting the judgment depends on the driver's financial situation. Many people find this process expensive and time-consuming, which is why uninsured motorist coverage is valuable.

Will the uninsured driver's license be suspended if they hit me?

Not automatically from the accident alone. However, if they are convicted of driving without insurance (a separate traffic violation), most states will suspend their license. Your state's insurance department can file a report with the motor vehicle agency, which may trigger enforcement. The uninsured driver may also be required to carry an SR-22 form before their license is reinstated.

What if the uninsured driver admits fault but has no money?

Your insurer can still pursue them through subrogation, but collection will be difficult. The insurer can place a lien on future wages or property, but if the driver has neither, the judgment may go unpaid. This is why having uninsured motorist coverage is important—it protects you regardless of whether the other driver can pay.

Does my insurance premium go up if I file a claim against an uninsured driver?

Not in most states. Filing a claim for an accident you did not cause is typically not held against you for rate increases. However, your specific policy and insurer determine this. Contact your insurer to ask whether filing a claim will affect your premium. Some insurers offer accident forgiveness, which prevents rate increases for the first at-fault accident.

Can an uninsured driver be forced to pay my medical bills if they hit me?

Yes, if you have uninsured motorist coverage that includes medical payments or bodily injury protection. Your insurer will cover your medical bills, and then pursue the uninsured driver for reimbursement. If you do not have this coverage, you can pursue the driver in court, but collection depends on their financial situation. Health insurance or your own medical payments coverage can cover bills while you pursue the uninsured driver.