How does uninsured motorist insurance work?
Suppose that Jane is involved in a car accident with Nick, who has no insurance and who was 100% at fault. If Jane has uninsured motorist insurance, she will be able to collect from her insurance company. Her insurance company may then sue the uninsured driver. This lawsuit is known as a “subrogation” lawsuit. Some states require uninsured motorist insurance as a condition of owning a licensed motor vehicle. Even if your state does not require it, you may wish to consider purchasing it because of the protection that it provides. Unfortunately, there is a significant minority of individuals who drive vehicles and who do not have insurance.
