To legally operate your vehicle, you must have a valid automobile insurance policy. If you’re discovered driving without proof of insurance, you could face severe consequences, which differ by state.
A pricey penalty, license suspension, a lack of financial security in the event of an accident, and even denial of insurance coverage if you’re involved in a wreck and ruled not at fault are all possible consequences of driving without insurance. Let’s look at what occurs if you’re stopped without insurance.
Is It Unlawful To Drive Without Auto Insurance?
In most states, driving without insurance is unlawful. Only a few states, however, allow you to self-insure. To be self-insured, you must deposit cash or submit a surety bond with your state’s treasury. This amount is usually equal to the individual liability limits set by the state, which can be a lot of dollars. As a result, most ordinary citizens do not have access to self-insurance.
You are breaking state laws if you cannot present evidence of insurance or a state-posted bond while driving. New Hampshire and some of Alaska’s more remote areas are the only exceptions to this rule.
These states can make drivers get auto insurance if they commit accidents or are convicted of major felonies like DUI or hit-and-run. Furthermore, the at-fault driver is always liable for any damage they create.
If you no longer drive your vehicle, it may be tempting to cancel your auto insurance coverage. There are reasons why this is a bad idea. First, you will be charged a higher cost if you want to reinstate your insurance coverage after a lapse.
Second, you may still be liable depending on where you park your vehicle. Car storage insurance may be a better alternative because you may get ongoing coverage while still being protected. However, remember that most insurers have specific rules to be met to qualify for this coverage.
Can You Drive An Automobile Without Insurance?
While it is possible to drive without insurance, it is not encouraged. If you’re judged liable, property damage and bodily harm bills (such as medical expenditures) can quickly become expensive without the help of an insurance company.
If you’re uninsured and need to borrow a friend’s car a few times a year, you might be protected if their policy has a permissive use clause.
What Happens If You Don’t Have Insurance?
A few possibilities are below if you get tangled in a car accident while uninsured.
When You Are To Blame
Even if it’s your first offense, being involved in an at-fault incident as an uninsured motorist is a highly serious situation that will certainly result in you being classified as a high-risk driver.
Assume you are at fault in an accident and do not have insurance. In that case, the other driver’s insurance provider is likely to sue you for bodily injury or property damage (or both), with damages ranging from a few hundred to thousands, depending on the accident’s severity.
Furthermore, the legal consequences for drivers who cause bodily injury to others while uninsured climb considerably in many areas. This violation can remain on your driving record for years, affecting your ability to obtain insurance.
When You Are Not At Fault
This fluctuates depending on the state and circumstance. Some states have a “no pay, no play” law, limiting the compensation you can receive if you’re uninsured after a not-at-fault collision. However, you will not be compensated in Louisiana if you are uninsured after an accident, regardless of the blame.
If determining fault is tricky, having an insurance company on your side can help. A claims adjuster or representative will represent you to the other insurance company and seek money to mend your car to its pre-accident state. If you don’t have insurance, you’ll be on your own after an accident, and you’ll be responsible for the entire financial burden.
When You Reside In A No-Fault State
Some jurisdictions have no-fault rules, which indicate that regardless of who is at blame in an accident, each driver must submit an insurance claim for their bodily injury and property damage with their own insurance company.
If you are uninsured in a no-fault state and are involved in a collision, you will not have an insurance provider to turn to, and you will not be able to file a claim with the other party’s insurance even if you are not at fault. You’d have to pay for your vehicle repairs or replacement, medical bills, and other expenses.
A car can take you to various locations and makes your life much easier. However, keep in mind that the route you’re traveling is filled with unknowns and hazards. It would help if you had a shield, which in this case is car insurance coverage, to defend yourself from the hazards of driving without auto insurance. “Is it okay to drive without insurance?” you might wonder. Well, the response is a resounding “no.”
Auto Insurance, Home Insurance, Motorcycle Insurance, Umbrella Insurance, Flood Insurance, and Other Insurance are all available through an insurance provider.
So, where should you start looking for low-cost vehicle insurance? 5280 Insurance is one option to consider. We provide exceptional service and discounts when you bundle your home and auto insurance. Talk with us today!