Is Auto Insurance Really Necessary?
There are 50 states in America, and in 49 of those states, driving without insurance is unlawful. Unless you live in New Hampshire, you must insure any car registered in your name. Even if you do not own a car but drive one, you need to be insured or included in the owner’s policy. Your car insurance company will make sure you have at least the minimum coverage required by the state. This is something that all insured drivers must have.
What if You Get Caught Driving Without Auto Insurance?
Even if it is your first violation, driving without insurance basically guarantees you a fine or penalty. If you drive without auto insurance, some states may suspend your driver’s license, even if it’s your first offense. If you can show proof of insurance or file Form SR-22 with the state, you may be able to get your license back. If you are spotted driving without a license and insurance, the repercussions are even more severe. If your car is impounded, you will not be able to recover it until you pay the fee and provide proof of insurance.
What If You Don’t Drive Often?
People who possess a rarely-used car may be tempted to discontinue auto insurance. There are several reasons not to do this. After a lapse in coverage, you will pay a higher rate to continue the insurance. Second, parking your automobile anywhere might cause a liability concern.
With automobile storage coverage, you are still somewhat covered. It is a better option. Most insurers need you to meet strict standards to qualify for this coverage.
What Penalties Can Be Imposed for Driving Without Auto Insurance?
Depending on the state, driving without insurance may result in a penalty or jail time.
Driving without insurance often carries the following penalties:
License Revocation
Your license may be suspended if you are caught driving without insurance more than once. The duration of this suspension varies by state. Some suspensions end when you present proof of insurance, but others only end after a specified period. To get your license back, you must show proof of insurance in the form of an SR-22 or FR-44.
Loss of Registration
Without insurance, you will lose your registration. Uninsured drivers face car seizure. Before you can drive again, several states need an SR-22 or FR-44.
Financial Penalties
State laws have hefty fines. First-time penalties may vary from $150 to $5,000. You may be forced into debt or bankruptcy after an accident. If the other driver lacks uninsured motorist, PIP, or collision insurance, an accident may cost tens or even hundreds of thousands of dollars in damages and medical expenditures. If you are at fault, you will pay most of these costs. The other driver may pursue legal action against you and collect future wages or savings to compensate for medical bills.
If you do not learn your lesson the first time and continue to drive without insurance, the consequences might be worse. Second and subsequent infractions usually result in substantial penalties and jail terms.
Jail
Most states consider driving without insurance a crime punishable by prison time. Repeat offenders tend to face greater penalties, including jail time. Uninsured drivers face up to 14 days in prison.
