What happens in the US if an uninsured driver

The innocent party files a lawsuit. Everything else depends on state law. I'm sure there would be a fine, if not jail time. Many states would revoke or suspend the driving license.

Most states require insurance but a lot will accept a bond in lieu of an actual policy (spoiler alert: a policy often costs less).

That is, you need to prove you can be financially responsible for any losses incurred by your driving.

Anyone who drives with neither a policy nor a bond is driving illegally pretty much everywhere. So yes, a lawsuit (where they would lose any assets they have, if any) and fines if not jail time from the state.

Over here a lot of insurance companies include cover if hit by an uninsured driver as standard.

According to the Compulsory Insurance Act, owners of motor vehicles and trailers in Germany must have a motor vehicle liability insurance.

In the absence of insurance cover, the person causing the damage pays for the damage out of his or her own pocket.
If the party causing the damage is unable to pay, Traffic Victim Assistance helps the injured party. (Traffic Victim Assistance ["Verkehrsopferhilfe"] is a registered association of all German motor vehicle liability insurers. It helps traffic victims as a guarantee fund in the event of accidents where no other insurance company pays the damage.)

Most people carry comprehensive/collision insurance coverage so your insurance company will pay for your vehicle to be repaired. Usually, accidents are reported to the police at the time of the accident and a report will be made. The At-Fault driver will be cited for Failure to Control and any other charges relating to the accident such as Speeding or Failure to Maintain a Secure Distance, plus a citation for failure to have State-Mandated Insurance coverage.

These citations will force that driver into Traffic Court, where he/she can plead Guilty, Not Guilty or No Contest. Depending on the charges, that driver could lose their license to drive.

Then the Insurance company can/will sue the uninsured driver for the amount paid to repair your vehicle. You don't have any control over that and usually are not even informed.

Yep that’s what happened to me. About ten years ago this young girl rear-ended me and she didn’t have insurance. My insurance paid for the repairs I only had to pay the 500.00 deductible. Well six years later I received a check in the mail from the insurance company for 500 bucks. They must have gone after this girl for their money and what I had to pay.

Thank you, all. I am just surprised at the number of people who don't insure their vehicle.

"There are 28 million uninsured drivers drivers in the U.S. 1 in 8 motorists (12.6%) don't have auto insurance. There were over 460,000 more uninsured drivers in 2019 than in 2015 due to growth in the overall population of licensed drivers." (Money Geek)

I couldn't find the percentage of uninsured drivers across Canada, but in Ontario it's estimated at 2%.

I can understand not buying collision if you have a beater but to not have comprehensive or liability is crazy.

Unfortunately, when you're broke the first thing that goes is insurance. People consider the chances of an accident low compared to eating or electricity.

The penalties for not being insured seem to be pretty hefty... much more than the annual cost for insurance. In some states, in addition to a fine, they can impound your car (towing and storage costs), and you have to insure it to get it back. And in some states, you're prohibited from driving for a length of time. Sounds pretty punitive to me.

In Germany, only about 0.01 percent of all cars are on the road without liability insurance.

The penalty for driving without insurance and without an accident a prison sentence of six months (suspended) or a fine, up to 180 day-fine),.
In addition, the vehicle can be confiscated (in case of endangering others), in case of intent the penalty is higher, in case of personal injury or property damage up to one year in prison (on probation) is possible. In addition, various secondary penalties such as driving ban, increased insurance fees, driver's license revocation can come.

Yes, some of those apply here, as well. As it should be.