Your homeowner's coverage won't apply to this loss, but your auto policy will if you have uninsured motorist coverage (UM). Talk to a lawyer to make sure that the other driver really was not insured and to see if you have UM coverage. If you use your UM coverage, your premiums should not go up (you pay extra to carry UM coverage). Good luck.
When you make a UM claim, your own carrier has the right to use all defenses that the other driver may have had against you. Many people make the mistake that they will be treated better by their own insurance company. This simply is not true. Your carrier will be allowed to assert all defenses available to the at-fault driver, and the carrier almost always does. A UM claim therefore essentially creates an adversarial relationship between you and your own insurance carrier. Thus, it may be wise to retain experienced counsel when asserting a UM claim. As can be expected, your own carrier will NOT be looking out for your interests (even though you are its own insured!). Instead, your carrier will be looking for ways to pay out as little money as possible.
However, you purchase UM coverage for events such as these, and it should not change your premium.
*PLEASE READ THIS BEFORE YOU COMMENT, EMAIL OR CONTACT ME. I am only licensed in Washington. Answering this question does not create an attorney-client relationship. This answer does not constitute legal advice.
If accident with an at fault driver who failed to pay their car insurance and let the policy lapse, then you qualify for an uninsured motorist claim against your own policy. Even if you insurance company cancels you, there is still coverage for the loss. Filing a UM claim is the best move in the case and likely the only practical option.
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In Texas, the homestead laws make the majority of people judgment proof. SO, yes you could go after the other driver, but in many cases the judgment would not be worth the paper it is written on. That is exactly why you buy uninsured motorist coverage--to protect you when others are irresponsible Yes, you should consider going after your UM coverage.
All information provided here is for educational use only and does not constitute legal advice nor establish any attorney-client relationship. Paul H. Cannon is licensed to practice law in the State of Texas. Laws vary from State-to-State. For legal advice and opinions, please retain the services of a lawyer licensed to practice in the appropriate state or jurisdiction.
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