What Happens if I Drive Without Car Insurance?

Driving without car insurance is against the law in almost all states. Of the states that do not have car insurance requirements, there is a ‘financial responsibility’ law in place which means you need to have enough money in the bank to pay for any damages. Either way, if you are caught driving without car insurance then you will face both financial and legal consequences.

Car Insurance Requirements

In most instances you cannot purchase a car without car insurance. If you are buying a car through a dealership and relying on the assistance of a bank to pay for the car, then they require proof of car insurance as part of the terms and conditions of the loan. This is not only for the protection of the lending company but also for yourself. Even if you are buying the car outright it is still required by law to have insurance on it.

Every state is different when it comes to their car insurance requirements, car insurance claims, as well as their driver responsibility laws but most require drivers to purchase at least liability coverage. However, regardless of where you live, one thing remains the same: if you do drive without insurance and are in an accident then you will not be covered for damages. You will be looking at several thousands of dollars in out of pocket expenses if this is the case. If you have caused the accident then you will also need to pay for the damages to the other driver.

Driving without insurance means that you will need to pay for any damages to your car as well as to the other people in the accident. You could be looking at medical related costs including surgery, medication and rehabilitation. You could be looking at a loss of income for a certain period of time. You will probably also be looking at damage to your car, all of which you will be responsible for. For many families struggling to keep up with the daily living expenses, an accident like this can push them into a world of debt, stress and financial exhaustion.

Consequences of Driving without Insurance

In addition to financial repercussions of driving without insurance, you are also disobeying the law and could face legal repercussions as well. Driving without insurance is a crime in most states and you will lose points on your license and may face a license suspension. In some instances you could also receive a fine for your disregard for safety on the road. Some people that are charged driving without insurance will try to fight the charge by hiring an attorney and claiming they did not know that the insurance had run out.

When you are buying your car insurance make sure you include any family members of your policy if they have a license. Household members must be listed on your policy to be covered. If they are in an accident and not listed on your policy then they will not be covered by your insurance provider and you could be faced with serious financial consequences.

Most drivers are not happy forking out their hard earned money on insurance every year. However, this is a part of life. The good news is that insurance rates are declining each year so you should be able to find a cheaper premium than you did last year. This can be a sigh of relief, especially considering everything else, from fuel prices to interest rates, are continuously on the rise. Don't risk driving without car insurance and catch a break on your car insurance by comparing your options often.

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