What Is The Penalty For Driving Without Insurance

driving without insurance

Introduction

Driving without insurance is illegal most states.  Yet many drivers still choose to drop their auto insurance when they are faced with financial difficulties. In some case, driver can afford insurance but prefer to play their odds that they will never need it.

This, however, is never a good idea. If an uninsured driver is involved in a moving violation or accident, the financial and personal repercussions can be devastating. This is amplified if an accident causes serious damage or injury

Drivers who are caught driving without insurance may face fines and in some case, jail time.  When as driver without insurance causes an accident, problems could arise for the driver and passengers of the other cars involved. 

Even if the other driver has car insurance, they will have to attempt an seek repayment from the driver who is driving without insurance.

Typically, this can involve legal action, and there is no guarantee that the uninsured driver has enough assets to cover the losses.

Some accident can cause severe damages to both the car and the drivers. This leads to lasting health problems, medical bills, and major inconvenience. 

Some States require drivers to purchase uninsured driver insurance coverage. 

If you put in a claim due to another driver not having insurance it could still impact you.  At fault accidents will stay on your driving rесоrd. This lead to your іnѕurаnсе premiums lіkеlу increasing.

Driver who drive without insurance not only hurting themselves, the are making things more different for other drivers. Since insurance is about pooling risk, uninsured drivers increase the rates for that ZIP code. 

Do I Need Insurance To Drive Someone Else’s Car?

Some people wonder, ” Can I drive uninsured if the owner of the car has car insurance?”Or: ” When you’re borrowing someone else’s car, does the insurance come with it? These are tricky questions. 

In general, as long as you have permission from the owner to drive the car, you are protected.  The owner’s insurance policy should cover injuries and property  damage in case you get into an accident.  The coverage depends on the specific terms of the policy. If the vehicle being driven is not insured,  then both the driver and the ownser face penalties.

5 Consequences Of Driving Without Insurance

Be Prepared To Pay Heavy Fines

 

Thе National Traffic and Motor Vehicle Safety Act governed road safety and traffic rule.

You will likely pay a lot of money in fines if you get pulled over driving without insurance.  If you are in an accident, then you will have to pay the expenses incurred out of your own pocket. 

You will also have to pay fines associated with the accident itself. Driving without insurance increases rates for those who have insurance. So the law tires to mandate everyone to have car insurance. 

Subsequent failures to show proof of insurance can cost you tens of thousand of dollars in fines.

 

Pay Losses For Damages Caused To Third-Party or Property

In an accident, if you unintentionally harm any person or surround property, you are liable to pay the loss incurred. This is called Third Party Liability.

Your car insurance cover this this third party liability and spare you the loss incurred.

In the absence of a valid insurance policy, you would have to bear the losses incurred. If a person dies, your liability would be very high. 

 

Pay Losses For Your Own Damage

While you have to pay for losses and damages caused to a third party, what about your losses?  In an accident you will have to pay the cost to repair your car and/or medical bills.

The cost of repairs for such damage are covered by comprehensive car insurance policy. If you had car insurance you would only pay your deductible. 

Without car insurance, the onus of paying for the repairs is on you. With the high cost associate with repairs and medical cost the financial strain is very high. 

Face Legal Complications

Besides the financial loss suffered in a car accident to you, passengers and other drivers  legal matter could be involved. Legal complication can arise if your car has no valid insurance

You would penalized and in serious instances imprisoned

Loss Of No Claim Bonus 

If you car insurance expired and you do not renew it, you could face fines and penalties. But you also lose your No Claim Bonus which you accumulated in your existing policy. 

Car insurance plans  allow a discount in subsequent year’s premiums if there is no claim in the current year. This discount increases every year and saves you premiums.

If you let your car insurance plan lapse, you will lose your accumulated no claim bonus. You will end up paying higher premiums when the policy is consequently renewed.

Summary

When drivers without insurance decide to purchase or are forced to after being caught uninsured, they will be penalized by their new insurance company for having a lapse in coverage.  

This will usually negate any savings they might have occurred by not paying for car insurance in the past.  Most insurance companies consider these drivers to be high risk and irresponsible.  This will lead to higher annual premiums.  

The best way for drivers to ensure they can afford car insurance is to shop around and compare quotes from different companies before buying coverage.  Even having only the minimum coverage required is better than having no insurance at all.


Quotes Pilot content is not written by a licensed insurance agent.  It is intended for informational purpose and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for your situation.