Uninsured Drivers: What Happens When You or Your Vehicle Are Hit by an Uninsured Car?

Uninsured Drivers: What Happens When You or Your Vehicle (or You as a Pedestrian) Are Hit by an Uninsured Car?

February 8, 2026

One moment you're thinking "It's okay, his insurance company will handle it," and the next you discover - he has no compulsory insurance!

Now what? Here we'll divide the answer into two parts: what happens with your bodily injuries and what happens with the damage to your vehicle.

Regarding Bodily Injuries

The good news: there are solutions. Even in such a case, you are not left without compensation. The state has established mechanisms to protect you.

If you were in your vehicle during the accident - you will file your bodily injury claim against the insurance company that insures the vehicle you were traveling in (whether or not the at-fault vehicle had compulsory insurance).
If you were a pedestrian - you sue "Karnit" (the Compensation Fund), which functions like an insurance company and compensates people injured by uninsured vehicles or when vehicles fled the accident scene.

In this article we will explain:

What "uninsured driver" means legally
What your rights are
How to claim through Karnit
How to sue the driver personally
What the consequences are for the uninsured driver

What Is an "Uninsured Driver"?

The Different Definitions

An uninsured driver can be:

1. Expired Insurance

The driver was insured, but the policy expired (did not renew)
The insurance expired before the accident

2. Cancelled Insurance

The insurance was cancelled (due to non-payment, for example)
The driver continued driving despite the cancellation

3. Never Was Insured

Bought a used car and didn't get insurance
Was driving a stolen vehicle
Was driving a vehicle not registered in their name and without insurance

How Many Uninsured Drivers Are There in Israel?

The numbers are concerning:

Approximately 2-3% of vehicles in Israel drive without valid compulsory insurance
That means: approximately 100,000 vehicles (!)

Why Does This Happen?

Financial - people cannot afford insurance (especially young drivers - insurance is expensive)
Negligence - forgot to renew
Ignorance - don't know the insurance expired
Recklessness - "nothing will happen to me"

What Happens When You Collide with an Uninsured Driver?

Discovering the Problem

Usually you'll discover this only after the accident:

You ask the other driver for insurance details
The driver says "I don't have insurance" or "my insurance expired"
Or: the driver gives details, and you call the insurance company and discover the policy is not valid

Sometimes the driver doesn't know the insurance expired! They think they're insured, but the policy was cancelled.

Initial Response - What to Do?

If the accident happens now and the driver says "I don't have insurance":

1. Call the Police Immediately - It's Mandatory!

100 - Israel Police
Explain that the other driver is not insured
The police will arrive and document

2. Document Everything

Driver details (ID number, driver's license, address, phone)
Photograph their vehicle (including license plate)
Photograph the damages
Photograph the scene
Get witness details

3. Don't Agree to "Cash Compensation"!

The driver may offer: "I'll pay you cash, don't report to the police."

Don't agree!

They won't pay (in most cases)
Even if they pay - it's not enough (damages can appear later)

4. Get a Police Report

The police will write a report - make sure to get it.

5. Report to Your Insurance Company

Even if the other driver is uninsured - report to your insurance!
If you have comprehensive insurance - it may cover the vehicle damage

Your Rights - 2 Paths to Compensation

Despite the driver being uninsured - you have 2 paths to get compensation:

Path 1: Claim Through Your Own Insurance (If You Have Comprehensive Coverage)

If you have comprehensive insurance:

A. Vehicle Damage:

Your insurance will repair the vehicle
Minus the deductible (usually 500-2,000 NIS)

Advantage: Your insurance will handle the repair.

Disadvantage:

You'll pay the deductible
Your insurance premium will usually increase next year (depends on the policy)

Important: Even if your insurance pays - it will sue the uninsured driver for reimbursement (this is called "right of subrogation"). And you can join the lawsuit for your damages (vehicle depreciation not covered by your insurance, the deductible, and other property damages such as rental car during repair, lost work days if you use the vehicle for work, etc.).

Path 2: Personal Lawsuit Against the Driver

You can sue the uninsured driver personally!

How:

Filing a lawsuit in court
Through an experienced car accident attorney

For what:

Vehicle damage
Vehicle depreciation and other property damages such as rental car during repair, lost work days if you use the vehicle for work, etc.

The problem: Even if you win in court - the driver may be without means! It's hard to collect money from someone who has none.

When it's worthwhile:

If the uninsured driver has assets (house, savings, good salary)
If you want "justice" - for them to pay personally

When it's not worthwhile:

If the driver is without means
It could be a "Pyrrhic victory" - you win in court, but don't see any money

The Claims Process Through Karnit - In the Case of an Uninsured Driver

The process is almost identical to a hit-and-run accident, but there are some differences:

Step 1: Filing a Claim

Time: Within 3 years of the accident.

Documents:

Police report - mandatory!
Details of the uninsured driver (name, ID number, address)
Confirmation from the insurance company that there is no valid insurance (or that the policy expired)
Medical documentation (if there are bodily injuries)
Documentation of damages

Step 2: Karnit Investigation

Karnit will check:

Is there really no valid insurance?
Did the accident really happen?
Are the damages related to the accident?

Karnit will contact the insurance company (of the uninsured driver) to confirm there is no insurance.

Step 3: Approval or Rejection

If Karnit approves:

You'll receive a compensation offer
Negotiation
Settlement or trial

If Karnit rejects:

You can appeal to court
An attorney is mandatory at this stage

What Happens to the Uninsured Driver?

Perhaps this doesn't concern you directly, but it's important to understand - driving without insurance is a serious criminal offense!

Criminal Penalties

The uninsured driver faces:

Heavy fine
Criminal conviction
License suspension - suspension for a period (usually 30-90 days), for repeat offenses - longer suspension
Vehicle seizure - the vehicle can be seized by police, released only after paying the fine and obtaining insurance
In accidents with injuries: actual imprisonment - possible! (especially if there is serious injury)

Civil Liability

The driver is personally liable!

Even if Karnit paid you - Karnit will sue the driver for reimbursement.

Example:

You received from Karnit: 200,000 NIS
Karnit will sue the driver for 200,000 NIS + expenses

The driver may find themselves:

With a debt of hundreds of thousands of shekels
Liens on bank account, salary, assets
Bankruptcy proceedings (if unable to pay)

The message: Driving without compulsory insurance doesn't pay off!

Important Tips for Dealing with an Uninsured Driver

Tip 1: Verify Insurance Before Leaving the Scene

After an accident:

Ask the other driver for their insurance certificate
Don't rely on what they say ("I have insurance")
Photograph the insurance certificate
Call the insurance company and verify the policy is valid

If it turns out there is no insurance:

Call the police immediately
Don't let the driver leave before the police arrive

Tip 2: Document Everything - Twice!

In the case of an uninsured driver - documentation is everything!

Photograph their vehicle (including license plate)
Photograph the driver (face) - if they agree
Photograph their driver's license and ID
Photograph the scene
Get witnesses

Why: If the driver flees later or evades - you'll have evidence.

Tip 3: Police Report = Mandatory!

This cannot be emphasized enough:

Without a police report - there is no claim to Karnit!

Even if the accident is minor - call the police.

Tip 4: Don't Agree to Private Payment

The driver will say: "Tell me how much the repair costs, and I'll pay you."

Don't agree!

Why:

They won't pay (in most cases)
Damages can appear later
Injuries can appear days later
You lose the option to file a claim

Always go through the official channels - police, Karnit.

Tip 5: Check Your Own Insurance

Before an accident happens:

Check if you have compulsory insurance and third-party liability (comprehensive is better of course)
Understand what is covered and what isn't

If you don't have comprehensive insurance:

Consider adding it - it can save a lot of headache

Tip 6: Get a Lawyer

In the case of an uninsured driver - a lawyer is a must.

Why:

The claim against Karnit is complex
You need to know how to formulate, what evidence to bring
Negotiating with Karnit requires experience

How much does it cost:

Attorney fees are regulated by law and range from 8 to 13 percent of the compensation you receive plus VAT

Is it worthwhile: Yes! A good lawyer can double the compensation.

Frequently Asked Questions

1. What if the driver claims they have insurance but can't find the documents?

Ask for the insurance company name
Call the company and verify
If they don't remember - call the police

2. Can I also sue the vehicle owner (if the driver isn't the owner)?

Yes! The owner must ensure there is valid insurance
You can sue the owner as well

3. What if the uninsured driver is a minor (under 18)?

You can sue the parents
The parents are responsible

4. Can I get compensation for vehicle damage from Karnit?

No! Karnit compensates only for bodily injuries
Vehicle damage - only through your insurance (if you have comprehensive) or a personal lawsuit against the driver

5. What if the uninsured driver fled the scene?

This is both a hit-and-run and an uninsured driver situation
The process is similar - claim through Karnit
But the driver needs to be found (the police will search)

6. Can I also get compensation from National Insurance (Bituach Leumi)?

Yes! You can (and should) also claim from National Insurance
This is separate from Karnit
Compensation from National Insurance is deducted from Karnit's compensation

7. Is third-party liability insurance enough?

Third-party liability insurance covers only damages you cause to others
It doesn't cover damage to your vehicle
Therefore comprehensive insurance is recommended

8. What if the uninsured driver is a tourist or foreign worker?

The same rules apply
Claim through Karnit
But it's harder to collect from them personally (if they leave the country)

Summary - Checklist for the Case of an Uninsured Driver

At the Accident Scene:

✅ Ask for the insurance certificate from the other driver
✅ Photograph the certificate
✅ Call the insurance company - verify the policy is valid!
✅ If there's no insurance - call the police immediately (100)
✅ Document everything - vehicle, driver, damages, scene
✅ Get witness details

After the Accident:

✅ Get a police report - it's mandatory!
✅ Report to your insurance company
✅ Seek medical attention (if there are injuries)

Within Days-Weeks:

✅ File a claim with Karnit (through a lawyer)
✅ File a claim with National Insurance
✅ If you have comprehensive insurance - file a claim for vehicle repair

Remember:

✅ Police report = mandatory for a claim against Karnit
✅ Don't agree to private payment from the driver
✅ Document everything - photos, video, witnesses
✅ Get a lawyer - in cases of bodily injury
✅ Karnit compensates only for bodily injuries, not vehicle damage

Driving without insurance is a serious problem, but you don't have to be left without compensation. Karnit exists exactly for this purpose.

Act quickly, document, and file a claim. Don't give up your rights!

This article provides general information only and does not constitute legal advice.