Finding of Fault

• Insurance companies instruct that, after an accident, policyholders summon the police, who will attempt to determine how the accident happened. The authorities will then issue a preliminary finding, which will state whether any of the parties involved in the crash broke any laws. If another party has insurance that covers damages resulting from the crash, that insurance company will likely attempt to make its own determination of who was at fault in the accident.
  
  

Penalties

• While on site, police will request that all parties driving produce insurance. Uninsured drivers could be charged with the crime of driving without insurance. The penalty for driving without insurance is different for each state. While in some states, a driver will only face a small fine, in other areas a driver may have his license suspended, such as in South Carolina. If the driver has been convicted of this offense before, the penalty will likely be more severe for each subsequent infraction.
  
  

Collection

• In additional to criminal penalties, if the driver who did not have insurance is found to be at fault for the accident, he may be held liable for all damages caused by the accident. Presented with a claim by the injured party or his insurance company, the driver may choose to settle the case out of court. However, if he is unable or unwilling to make a deal with the injured party, the other party may sue him.
  
  

Considerations

• Although driving without insurance is illegal, this does not mean that an uninsured driver injured in an accident is not entitled to compensation if the accident was not his fault. Although the driver will still likely face criminal charges, he is still allowed to claim damages against the party responsible for the crash. If the case goes to court, the fact that the injured driver did not have insurance should not weigh on a judge's ruling in the case.