Can I Buy Car Insurance Right After an Accident?

If you have been involved in an accident, it is technically true that you can buy car insurance the same day. However: while this additional protection can help you in the future, it will not provide you with coverage for the collision that happened earlier. Your insurance carrier is only obligated to pay claims for incidents that happened while your policy was active.

It is vital to avoid claiming that an incident occurred after buying a policy when that is not the case. This is insurance fraud, which can lead to criminal charges and other penalties. A skilled car accident attorney could advise you of your legal options following a crash.

A New Policy Will Not Cover a Past Accident

As frustrating as it is to get in a collision without insurance, there is no quick fix for obtaining a policy after the fact. Drivers may be able to purchase a new policy in the aftermath of a collision, but the fact that it was not in effect at the time of the crash means that the insurance company is not on the hook for paying any damages.

There are major risks that come with providing false statements to the insurance company in order to file a claim. Insurers will typically flag a claim made on the same day a policy is bought as suspicious. If that investigation shows that the claim was fraudulent, there may be criminal consequences.

In this scenario, drivers will typically be on their own. This is a problem if they are at fault, given that they might be required to pay for the cost of the other party’s injuries and property damage.

Drivers Can File a Lawsuit Even If They Are Not Covered

Texas law may not allow drivers to use car insurance that was bought immediately after an accident, but it does provide uninsured motorists with the opportunity to pursue a personal injury lawsuit if they are not responsible for the crash. The right to seek compensation from the other driver is not limited by the lack of liability insurance coverage.

However, comparative fault laws still apply. This legal standard only allows a plaintiff to recover compensation following an accident if they are less than 50 percent responsible for the collision. Drivers who are primarily liable may not recover a monetary award. In cases where a plaintiff is less than 50 percent to blame, the amount they are entitled to recover will be reduced by their degree of fault.

The Consequences of Driving Without Insurance

It may be costly to purchase a policy following an accident, but the alternative will likely be even more expensive. Driving without insurance can lead to steep monetary fines in the State of Texas, particularly for drivers who have multiple convictions on their record. If another crash occurs, an uninsured motorist will be on the hook for that too.

Having a recent incident on a person’s driving record will usually lead to higher monthly premiums. As important as it is to always have coverage, it is a good idea to be prepared for the increased expenses that come with it. The amount paid each month is often a fraction of what a full injury claim could be.

Learn About Options Besides Buying Car Insurance Shortly After a Crash

While you cannot buy car insurance right after an accident and get coverage from that carrier, you do have options for pursuing damages if you were not at fault. The right attorney could assist you with every aspect of your case. Reach out for a private consultation as soon as possible.