How Hit and Run Accidents Impact Your Finances

Hit and run accidents are among the most frustrating and costly types of car accidents. In these situations, a driver involved in a collision fails to stop, exchange information, or render assistance, leaving the victim to face not only physical injuries but also serious financial consequences. Understanding the financial impact of hit and run crashes, including immediate out-of-pocket expenses and long-term costs, is essential for anyone who drives or rides in a motor vehicle. In this blog, we explore how hit and run accidents can affect your finances and discuss what you can do if you’ve been injured by a driver who fled the scene of the crash.

An Overview of Hit and Run Accidents

Hit and run crashes occur when a driver involved in a collision leaves the scene without fulfilling the legal obligations of stopping and reporting the incident. These incidents range from minor property damage cases to serious injury or death. According to national data, there were nearly 860,000 estimated hit and run incidents in the U.S. in 2022, including more than 2,800 that involved fatalities and tens of thousands more resulting in injuries or property damage. Approximately 74 percent of these accidents resulted in property damage only, while about 26 percent involved injuries and less than 1 percent were fatal.

Research further shows that hit and runs have been steadily increasing. For example, fatal hit and run crashes were up 89 percent from 2012 to 2021, underscoring a growing public safety issue.

Immediate Financial Costs After a Hit and Run Accident

When a hit and run crash occurs, the financial impact begins almost immediately. Victims often face a series of unexpected expenses that can strain personal finances.

Medical Expenses

Emergency room and hospital bills following injuries sustained in a crash.
Rehabilitation and physical therapy for serious injuries.
Prescription medications and follow-up care.
Long-term or lifelong medical needs in cases of permanent disability.

Without prompt insurance coverage or recovery from the at-fault party, these expenses quickly escalate. Personal injury cases involving hit and runs often involve uninsured motorist (UM) claims, but not all drivers carry adequate coverage to completely cover medical costs.

Vehicle Repair and Replacement

Repairing structural and mechanical damage to your car.
Rental car costs while your vehicle is being repaired or replaced.
Diminished vehicle value even after repair, known legally as inherent diminished value, a common long-term loss in resale worth that often isn’t covered fully by insurance.

Lost Wages and Reduced Earning Capacity

If injuries prevent you from working, you may face:

Lost income during recovery.
Reduced earning capacity if you return to work with limitations.
Lost career opportunities and future income potential.

Broader Economic Costs

While individual costs are significant, hit and run and other motor vehicle crashes also impose a broader economic burden on society. According to the National Highway Traffic Safety Administration (NHTSA), motor vehicle crashes cost Americans about $340 billion in 2019 in medical expenses, lost productivity, property damage, and other financial losses. These costs equate to roughly $1,035 per person in the U.S. and represent about 1.6 percent of national GDP.

Even though not all of this impact is attributable specifically to hit and runs, they contribute to rising insurance costs, emergency response burdens, and lost productivity.

How Insurance Responds and the Financial Implications

Insurance policies play a critical role in offsetting financial losses after a hit and run crash, but they also come with challenges.

Collision and Uninsured Motorist Coverage

Collision coverage can pay for repairs to your vehicle when the at-fault driver cannot be located.
Uninsured Motorist (UM) coverage often functions as a stand-in for a hit and run driver, treating them as if they were uninsured. This can cover your medical expenses, lost wages, and pain and suffering.

Without these coverages, you may be left to pay significant costs out of pocket.

Insurance Premium Increases

Hit and run claims can affect insurance premiums in different ways:

Not-at-fault claims may still lead to a premium increase in some states depending on your provider’s rating rules.
A hit and run can remove safe-driver discounts, increasing your future premium even if you were not to blame.

Deductibles and Coverage Limits

Even with coverage:

You must pay policy deductibles before your insurer pays benefits.
Insurance limits may not be high enough to cover all expenses, leaving you with remaining costs.

Legal and Financial Consequences for the Hit and Run Driver

Though this article focuses on how hit and run crashes impact victims, it’s also important to understand the legal and financial penalties facing fleeing drivers:

Hit and run offenses can be charged as misdemeanors or felonies depending on the severity of the crash and whether injuries occurred, resulting in fines and potential prison time.
Drivers who flee can face civil liability, including being sued for damages they caused.

These legal consequences signal the seriousness of fleeing the scene, but victims are often left to pursue compensation through insurance or civil litigation when the at-fault driver cannot be located.

Personal Testimony: A Lawyer’s Perspective

Personal injury attorneys understand the deep financial and emotional toll hit and run accidents take. As John J. Malm, a veteran Naperville car accident lawyer, has stated:

“When someone leaves the scene of a crash that injures you, they not only violate the law, they force you to grapple with medical bills, lost income, and financial uncertainty during the worst moments of your life.”

This reality underscores why victims need informed legal guidance and why proactive insurance planning matters.

Protecting Your Finances After a Hit and Run Crash

Being involved in a hit and run crash is stressful, but there are steps you can take to mitigate financial fallout:

Review and strengthen your insurance coverage before an accident occurs.
Report the crash immediately to law enforcement.
Notify your insurance company promptly and begin the claims process.
Document all medical treatments, costs, and lost income.
Consult an experienced Illinois car accident attorney to ensure you pursue all compensation to which you’re entitled.

Frequently Asked Questions about Hit and Run Crashes

Q: What financial costs should I expect after a hit and run accident?
A: You may face medical bills, vehicle repair or replacement costs, lost wages, rental car fees, diminished vehicle value, and increased future insurance premiums.

Q: Will my insurance cover hit and run accidents?
A: Yes, if you have collision and uninsured motorist coverage, but coverage limits and deductibles will affect your recovery.

Q: Does filing a hit and run claim raise my insurance premiums?
A: It can, even if you were not at fault. Some insurers increase rates or remove safe-driver discounts after any claim.

Q: How long do I have to file a claim after a hit and run?
A: In Illinois, you generally have two years to file personal injury claim, but specific timelines depend on who you are suing and what your insurance contact says.

Q: What if the hit and run driver is never found?
A: You typically file a claim under your uninsured motorist coverage or property damage coverage through your insurer and pursue legal avenues as needed.

Contact the Experienced Illinois Hit and Run Accident Attorneys at John J. Malm & Associates

Hit and run accidents are not only a public safety concern but a significant financial threat to victims and their families. From unplanned medical bills and vehicle repairs to lost wages and insurance complications, the financial impact of these crashes can be profound and lasting. In the face of this challenge, it is crucial to protect yourself with adequate insurance, understand your legal rights, and secure experienced representation when needed.

If you or a loved one has been injured in a hit and run accident, do not face the financial and legal complexities alone. Contact John J. Malm & Associates to discuss your case, explore your options, and pursue the compensation you deserve. Our Illinois accident lawyers are committed to standing with you through every step of your recovery and helping you secure the financial peace of mind you need after a hit and run crash.