Most people are aware of the many dangers driving poses. But there is one danger people do not always take precautions against; car insurance. So, what happens when you drive without insurance?
Always factor in a budget for car insurance. It is not the surprise cost you want, but it is essential. Driving without insurance comes with huge risks, from stress to costly legal consequences.
An estimated 1 in 8 motorists are uninsured, but nearly all states require car insurance. Read on to learn the legal consequences of driving with no car insurance and why it is essential to have it.
Fines for No Car Insurance
You are usually subject to a fine if you are pulled over and have no car insurance. The costs range in price depending on your state but can be anything from $25 to thousands of dollars. Plus, if you are caught with no car insurance more than once, you could face more severe legal consequences.
Some states, such as Alaska and Georgia, will suspend your license and fine you if you cannot show proof of insurance. You need to check your specific state rules for laws on driving without car insurance, but if you are caught more than once, the legal consequences will likely escalate. You can also face license suspension if you are involved in an accident without insurance.
You could also lose your car if you are caught driving without insurance, or you are involved in an accident. You will have to find the money for a new car and potentially have to file an SR-22 form to reinstate your license.
It can be up to the officer who catches you as to whether your car will be towed it not too. This could lead to impounding fees and other penalty costs.
Increased Insurance Rates
You can also face higher insurance premiums if you are caught with no car insurance. This can lead you to not being able to afford insurance and having to stop driving. If you are involved in an accident without insurance, premiums will skyrocket.
There are millions of car crashes every year, and around 4.4 million people in the US are injured severely enough to require medical attention. Dealing with liability and insurance claims after accidents can be challenging and distressing.
However, not insured drivers face more consequences. You will face license suspension and other legal consequences.
You could also face expensive medical bills and liability claims. If you have no car insurance, the responsibility to pay will be down to you. You could face claims such as a vicarious liability claim, which can quickly lead you to financial hardship and even bankruptcy.
Jail Time With No Car Insurance
You can even face jail time if you are caught with no car insurance, especially if this happens more than once. It is not worth the risk to your wallet, livelihood, mental and physical wellbeing. There are plenty of car insurance options out there, so find a reputable option that suits your needs.
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