What are the Risks Involved in Driving Without Car Insurance?

July 13, 2020

In most states, you have to demonstrate financial responsibility before you can drive on the road. In most states, you don’t need to provide your bank statements, but you do need to prove that you have insurance. In fact, you must prove that you have adequate insurance to cover the potential damages that could result from your driving.

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In the states that don’t have minimum insurance requirements, they do have financial responsibility laws. This means that you must provide proof of your bank statements or have other proof of assets that show that you could cover the damages that could occur if you were involved in an accident. If you don’t have proof of such assets, the state could revoke your license.

Why is Car Insurance Required?

Auto insurance is there to protect your assets. If you cause damage to someone or something, you have to pay for it. When you are dealing with a serious car accident, you could be talking about thousands of dollars. If you don’t have that kind of money lying around and you don’t have insurance, you could find yourself in legal trouble.

While it seems like car insurance is just another nuisance payment, it protects you from the unexpected. Even if you pay for car insurance for years without using it, the one time that you do need it, you’ll be grateful for those years that you paid for it.

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Driving Without Insurance

If you are caught driving without insurance but aren’t involved in a car accident, you’ll face penalties, but not as severe as those if you were in a car accident. Typically, states have two types of violations. They can cite you for not carrying proof of insurance or for not having insurance at all.

If you just don’t have your insurance card on you, the police officer may give you a ticket or a warning. There may also be administrative fees you have to cover. This covers the cost of the work the city has to do in order to process or release your ticket.

If you don’t have insurance at all, you could face hefty penalties. In California, for example, it can cost as much as $720 if you don’t have insurance. If you don’t have insurance in Florida, you could lose your license unless you can provide proof of insurance within five days.

Getting Into an Accident Without Insurance

If you are involved in an accident and you don’t have insurance, you face even more serious consequences. In some states, like California and New York you lose your license for a year. In addition to losing your license, though, you have to cover the financial responsibility of the accident. Depending on its severity, you could be talking thousands or even millions of dollars. If the unthinkable happens and you kill someone with your car, you could face prison time too.

In short, it’s important to carry car insurance not only to follow the law but to protect yourself financially. You don’t want to be caught without insurance and have to cover someone else’s medical bills, loss of wages, and vehicle repair bills on your own. The small amount of money you’d pay for the car insurance is well worth the protection that it provides.

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