How to get the at-fault driver insurer to pay for car damages when the at-fault driver did not report an accident?

When the at-fault driver’s insurer does not voluntarily offer you compensation for a car accident, you can sue the at-fault driver for the costs, damage, and/or injuries you suffered. If you win, the driver and/or his insurer will have to pay you.

There is tendency to over-rely on the other driver’s insurance to pay for your car damages or other costs you incur, when someone else is at-fault in a car accident. If the other driver’s insurer does not voluntarily ante up, how we can make their insurer pay? The answer is to sue but not the insurer–you sue the at-fault driver personally.

The at-fault driver’s insurer is not like your own automobile or homeowner’s/renter’s insurance. The at-fault driver’s insurer has no obligations or responsibilities to you. That’s because you are not their customer or client. You are not the person paying for this insurance policy. You are not the one with whom they have a contract (since insurance policies are, at base, nothing more or less than contracts).

The at-fault driver’s insurer is their insurer. The insurer’s obligation, under the at-fault driver’s insurance policy, is to defend (such as in court) the at-fault driver, and/or to pay any amounts he or she is found to owe others due to an accident.  Sometimes–maybe even often–the at-fault driver’s insurer will choose to offer compensation (a settlement) without a lawsuit, but that’s because in their opinion, the other driver is likely to sue and likely to win. Therefore, the logic goes, it makes sense to voluntarily offer the other driver something, rather than go to the expense of defending a lawsuit but likely losing, in which event they will have to pay for their insured anyway.

However, such a settlement is purely voluntary. They may choose to offer compensation but cannot be compelled to offer a settlement. And sometimes they just won’t. Possibly they think that their driver is not in fact at-fault, or they think you lack evidence to prove your case, or that the damage you are claiming was not in fact caused by the accident. Whatever the reason, if the insurance company doesn’t want to offer you a settlement, they don’t have to.

An at-fault driver–that is, someone who was driving negligently, or carelessly–is liable for the damage, costs, and injuries he or she causes. (The corollary is that a driver who was not at-fault in causing an accident is not liable or responsible for the consequences.) Therefore, if you sue the at-fault driver and prove in court that he or she was at fault in causing your damage or other losses, you can get a court judgment (an order) requiring the at-fault driver to pay. At that point, if the at-fault driver had insurance, the insurer should step in and pay for him or her, but they do so because of their obligation to the at-fault driver, not because of any obligation to you. And if for some reason the insurer does not pay (e.g., maybe the at-fault driver let the policy lapse), the at-fault driver will still be obligated to pay you.

Case Studies: Securing Compensation From At-Fault Driver Insurers

Case Study 1: Smith v. Johnson Insurance Company

Mr. Smith was involved in a car accident caused by Mr. Johnson, who failed to report the incident to his insurance company. Despite Mr. Smith’s attempts to negotiate with the insurer for compensation, they refused to offer a settlement.

Mr. Smith decided to sue the at-fault driver, Mr. Johnson, personally. After presenting evidence in court to prove Mr. Johnson’s negligence, Mr. Smith obtained a court judgment in his favor. As a result, the insurer was compelled to pay the damages awarded to Mr. Smith based on their obligation to Mr. Johnson, their insured.

Case Study 2: Davis v. Wilson Insurance Co.

Mrs. Davis experienced significant property damage and injuries due to a car accident caused by Mr. Wilson. However, when she approached Mr. Wilson’s insurance company, they denied her claim, arguing that their insured was not at fault. Undeterred, Mrs. Davis decided to take legal action against Mr. Wilson to establish his liability. In court, she successfully proved that Mr. Wilson’s negligent driving led to the accident and her losses.

Consequently, the court issued a judgment against Mr. Wilson, requiring him to compensate Mrs. Davis. If Mr. Wilson had insurance coverage, his insurer would have been responsible for paying the judgment on his behalf, but their obligation would be to Mr. Wilson rather than Mrs. Davis.

Case Study 3: Thompson v. Martinez Insurance Group

Ms. Thompson pursued compensation for car damages resulting from an accident caused by Mr. Martinez. Despite substantial evidence supporting her claim, the insurer, Martinez Insurance Group, refused to offer a settlement. They believed that Ms. Thompson lacked sufficient evidence to prove her case. Faced with the insurer’s unwillingness to negotiate, Ms. Thompson decided to sue Mr. Martinez directly.

In court, she successfully demonstrated that Mr. Martinez was at fault for the accident and obtained a judgment against him. If Mr. Martinez had insurance coverage, his insurer would have been obliged to pay for his liability, but they do so based on their responsibility towards Mr. Martinez, not towards Ms. Thompson.