What Happens If An Accident Occurs During An Insurance Gap?

Car and truck insurance is meant to provide financial protection when accidents happen. But what if your policy isn’t active at the time of a crash? This is known as an insurance gap, and it can create significant problems for drivers, passengers, and accident victims.

Insurance gaps can happen for many reasons, but they don’t have to leave you without support after a crash. If you’ve been injured in a car or truck accident during a lapse in coverage, speaking with a Baltimore personal injury lawyer quickly can help you understand your rights and protect your finances.

What Is an Insurance Gap?

Understanding what insurance gaps are, why they happen, and how they affect recovery after an accident is critical. Especially in Maryland, where carrying minimum auto insurance coverage is required by law.

An insurance gap occurs when a driver does not have active auto insurance coverage at the time of an accident. Even if you previously had insurance, a lapse in coverage can leave you personally liable for damages. Common reasons for insurance gaps include:

• Missed premium payments. Failing to make payments may cause your policy to be canceled.
• Policy non-renewal. If you don’t renew on time, coverage may lapse.
• Switching insurance companies. A gap can occur if there’s a delay between one policy ending and another beginning.
• License or registration issues. Some insurers cancel policies if a driver’s license is suspended or registration lapses.

During these periods, you are considered an uninsured driver under Maryland law.

Being involved in an accident during an insurance gap can bring severe financial and legal consequences. If you caused the accident, you may be personally responsible for covering the other party’s medical bills, vehicle repairs, and any additional damages, which can be financially devastating since these costs would come out of your own pocket.

Should another driver be at fault, their insurance should cover your injuries and losses, but recovering compensation can still be challenging, as insurers often push back harder when the injured party lacks their own coverage. Medical expenses present another major hurdle, as being uninsured can make it difficult to afford emergency care, rehabilitation, or long-term treatment. In some cases, hospitals may place liens on any future settlements to secure payment.

Property damage is also a concern, since repairing or replacing your vehicle will be your responsibility unless you can prove that the other driver was responsible for the crash.

How Can You Protect Your Recovery?

Facing a car or truck accident without insurance is intimidating, but you do still have options. An experienced Maryland car and truck accident attorney can investigate the accident to establish fault and liability. Seasoned Baltimore personal injury lawyers know how to work with medical providers to delay billing while a claim is pending and negotiate with the at-fault driver’s insurance company to maximize recovery, too.

Do you need assistance accessing a full and fair compensation package? Whether you were fully insured at the time of the collision or experiencing an insurance gap, the legal team at Iamele & Iamele, LLP are available to help. Contact us to book your confidential appointment.