I want to retract my previous advice. Report her! Immediately!
You paid additional money for under- and un-insured motorist
insurance. Use it! It should not affect your premiums (that's
why you pay more).
You have nothing to lose and everything to gain by reporting her.
There are a couple of possibilities that I'm not sure have been
1. Does she have a current license? She may already be driving without
2. Is she actually insured, but is trying to protect her own insurance
costs? It seems crazy, but $500 is probably less than the additional
premiums she would have to pay over the next 3 -5 years if the
accident gets on her records. And if she has broken any laws by denying
having insurance, can you ever imagine it going to trial?
Denise's comments about fiscal responsibility don't fully cover the
situation -- yes, the next person she hits may have medical insurance to
pay for the medical costs, but what about compensation (loss of earnings,
pain, etc). Of course, with legal requirements for insurance being so low
in the US, anyone who carries minumum insurance does not really meet their
Unlike the UK, where the liability part of car insurance in UNLIMITED!
Yes, that's right -- there is no legally acceptable limit. When sailboat
racing in the UK a few years ago, I was required to have about 100 times
the coverage required by the State of Texas when I lived there!