What Happens If the Other Driver Has No Insurance in California?

California’s Insurance Requirements and the Uninsured Driver Problem

California law requires all drivers to carry minimum liability insurance. As of January 1, 2025, the minimum requirements were increased for the first time since 1967 to $30,000 per person for bodily injury, $60,000 per accident for bodily injury involving multiple people, and $15,000 for property damage. These minimums are scheduled to increase again to $50,000/$100,000/$25,000 on January 1, 2035.

Despite these requirements, enforcement is imperfect and millions of California drivers remain uninsured. The penalties for driving without insurance include fines of $100 to $500, vehicle impoundment, and suspension of registration and driving privileges. But these penalties do not help you recover compensation when an uninsured driver causes your accident.

Your Options When the At-Fault Driver Has No Insurance

1. Uninsured motorist coverage (UM). This is typically your best and most reliable option. Uninsured motorist bodily injury coverage (UM) pays for your medical bills, lost wages, pain and suffering, and other injury-related damages when you are hit by an uninsured at-fault driver. Your UM coverage limits usually match your liability coverage limits unless you signed a written waiver choosing lower limits or declining coverage entirely.

California law under Insurance Code Section 11580.2 requires all auto insurers to offer UM and UIM coverage with every policy sold in the state. However, you are not required to purchase it. If you declined UM coverage, you would have signed a written rejection form. If you are unsure whether you have UM coverage, check your policy declarations page or contact your insurance company.

2. Uninsured motorist property damage (UMPD). If you carry UMPD coverage, it can pay for damage to your vehicle caused by an uninsured driver. California caps UMPD at $3,500 per accident, and you will pay a deductible. If you already carry collision coverage, your collision policy will likely provide broader protection for vehicle damage regardless of fault, making UMPD less necessary.
3. Collision coverage. If you carry collision insurance on your own policy, it will pay for repairs to your vehicle after an accident regardless of who was at fault. You will pay your deductible, and your insurer may seek reimbursement from the at-fault driver through subrogation. Collision coverage is optional in California but is typically required if your vehicle is financed or leased.
4. Medical payments coverage (MedPay). MedPay is an optional first-party coverage that pays for medical expenses for you and your passengers regardless of who caused the accident. Minimum limits start at $1,000 per person, though higher limits are available. MedPay can provide immediate funds for medical treatment while you pursue other claims.
5. Personal injury lawsuit against the uninsured driver. You can file a lawsuit directly against the uninsured driver to recover compensation. However, this option has a practical limitation. Most uninsured drivers are uninsured because they lack financial resources. Even if you win a judgment, collecting the money may be difficult or impossible if the driver has no assets or income to attach.

How an Uninsured Motorist Claim Works

When you file a UM claim, you are filing against your own insurance company, not the at-fault driver’s insurer. The process begins by notifying your insurer of the accident and identifying the at-fault driver as uninsured. Your insurer will investigate the claim, review your medical records and damages, and either accept or dispute the claim.

It is important to understand that even though you are filing with your own insurance company, their interests are not aligned with yours. Your insurer has a financial incentive to minimize your payout. They may dispute the severity of your injuries, question causation, or argue that you share some fault for the accident. For this reason, many people choose to work with a personal injury attorney when pursuing a UM claim, especially for significant injuries.

If you and your insurer cannot agree on the value of your claim, California law allows you to demand arbitration. UM arbitration is a binding process where a neutral arbitrator evaluates the evidence and issues a decision on the amount of compensation owed.

Proposition 213: A Critical Warning for Uninsured Drivers

If you were driving without insurance at the time of the accident, California Proposition 213 significantly limits your ability to recover damages. Under Prop 213, an uninsured driver who is injured by another driver’s negligence cannot recover non-economic damages such as pain and suffering, emotional distress, or loss of enjoyment of life. You can still recover economic damages like medical bills and lost wages, but the most valuable category of damages is off the table.

This restriction applies even if the other driver was entirely at fault. Prop 213 is designed to incentivize compliance with insurance laws, but it can have harsh consequences for uninsured drivers who are innocent victims. The only way to avoid this limitation is to carry the required insurance at the time of the accident. 

Frequently Asked Questions

What if the uninsured driver was in a hit-and-run?

If the at-fault driver fled the scene and cannot be identified, your UM coverage can still apply to bodily injury claims in most cases. For property damage, UMPD coverage typically requires the uninsured driver to be identified, which means hit-and-run property damage may not be covered unless you have collision insurance.

Can I sue an uninsured driver even if I have UM coverage?

Yes. You can pursue a lawsuit against the uninsured driver in addition to filing a UM claim. However, as a practical matter, collecting a judgment against an uninsured driver is often difficult. Your UM coverage is usually the more reliable path to compensation.

What if the other driver has insurance but not enough to cover my damages?

This is where underinsured motorist (UIM) coverage becomes critical. UIM pays the difference between the at-fault driver’s policy limits and your actual damages, up to your own UIM policy limits. For example, if your damages total $80,000 and the at-fault driver’s policy covers only $30,000, your UIM coverage can pay up to an additional $50,000 depending on your limits.

Should I accept UM/UIM coverage when my insurer offers it?

Given that roughly one in six California drivers is uninsured, and that even insured drivers often carry only the state minimum, UM and UIM coverage is one of the most important protections you can add to your policy. The cost is relatively modest compared to the financial risk of an uninsured or underinsured accident.

Protecting Yourself Before an Accident Happens

The best time to prepare for an accident with an uninsured driver is before it happens. Review your auto insurance policy to confirm you carry UM and UIM coverage at adequate limits. If you have already been in an accident with an uninsured driver, consult with a personal injury attorney who can help you navigate the claims process, negotiate with your own insurer, and explore all available avenues for recovering the compensation you need.