Hit and Run Accidents: Who Pays?

Hit and run accidents are not uncommon. There are many reasons for hit and run accidents. Typically the person is intoxicated, involved in some criminal activity or does not have a license or insurance.

I see hit-and-run cases regularly, and the pattern is familiar. The driver who fled was often uninsured, unlicensed, or impaired. That is exactly why I tell people to look at their own uninsured motorist coverage before they ever need it. When the other driver disappears, your own policy is frequently the only source of recovery.

Uninsured and underinsured insurance is insurance that you purchase to protect yourself in the event that you are in an auto accident and the at-fault driver either does not have insurance, or does not have enough insurance to pay for your injuries.

There are two important issues you need to understand about this type of insurance:

1. Your limits must exceed the at-fault driver’s coverage in order for it to become available. In other words, if the other driver has $100,000 in coverage, and you have $100,000 in coverage, then your coverage would not become available. If the other driver only had $50,000 coverage then you would have an additional $50,000 from your coverage. Obviously if the other driver had no insurance, then you would have $100,000 available. The insurance does not stack. So you cannot collect $50,000 from the at-fault driver and then an additional $100,000 through your insurance for a total of $150,000. That is not how it works. You can never exceed your policy limits.
2. These cases are handled through arbitration as opposed to a trial. So you will not have your case presented to a jury. Instead it will be presented to one single judge or lawyer that will then make a decision on whether you win or lose, and how much money you are owed.

People are often surprised to learn they do not get a jury in these cases. Your uninsured motorist claim goes to arbitration, decided by one neutral arbitrator instead of a jury. The preparation is the same as a trial, and the outcome is binding, so the case deserves the same seriousness.

In California, the minimum liability insurance required to drive a car is now $30,000 per person and $60,000 per accident for bodily injury, and $15,000 for property damage, under SB 1107, which took effect January 1, 2025. That is not enough money to compensate for any serious injury yet many people only carry that level of insurance. Additionally, California has a high percentage of uninsured drivers on the roads. These two facts combined with the fact that this type of insurance is very affordable, means that you should purchase as much of it as possible under your insurance policy. If you have $500,000 liability coverage, then you should have $500,000 in uninsured motorist coverage as well.

Attorney Q&A: Hit-and-Run Accidents

What should someone do in the first hours after a hit-and-run accident in California?
Your actions following a hit-and-run are exactly the same as any other crash. You want to report it to the police department and obtain a police report, and you want to be examined by a doctor to document your injuries. Photographing the damage and notifying your insurance company are important as well, though those items can wait until you are medically stable.

How does uninsured motorist coverage work when the at-fault driver is never found?
The terms of your insurance contract control. In this case, you typically only need to show that there was contact between your vehicle and the other vehicle that fled the scene. Once that is proven, your uninsured motorist coverage should kick in, even if the other driver is never found.

If the hit-and-run driver is found but has no insurance, what options does the injured person have?
If the other driver is found but has no insurance, you have two options. First, you can still file a lawsuit against the driver and try to collect your damages directly from that person. The downside is that most people do not have sufficient assets to pay for a personal injury claim. The good news is that your uninsured motorist coverage is for exactly this situation, so you can make a claim on that policy.

Why do uninsured motorist cases go to arbitration instead of trial, and what should people expect from that process?
Uninsured motorist cases are based on your auto insurance contract. One of the trade-offs for receiving uninsured motorist benefits is that you typically waive a jury and agree to have the claim determined by an arbitrator. An arbitrator is usually a retired judge or a lawyer who is neutral to either side. He or she will listen to the evidence and come to a determination that is binding on both parties.