For a lot of people, car insurance is one of those things we purchase grudgingly because the law requires us to do so. If we had our way we wouldn’t bother sinking tens of thousands of dollars, over the course of a lifetime, into a product we may never use. But it’s better to purchase insurance than be caught without it.
These days’ state laws take driving without insurance very seriously. And with good reason. As the cost of health care and consumer prices continue to rise, the potential financial loss represented by even a minor car crash are higher than they’ve ever been. The damage caused by a serious accident could push someone to the brink of financial ruin.
Whether we agree with insurance laws or not, make no mistake that every state requires drivers to make good on any damage they cause or injuries they inflict through car accidents. In legal terms this is called “financial responsibility.” With the exception of Idaho, every state requires drivers to prove financial responsibility before they are legally allowed to register and drive a car.
Immediate Consequences
If you’re pulled over by a police officer or involved in an accident, having no insurance coverage will usually result in immediate consequences. At the very least you’ll be given a citation and forced to pay a small fine. But most states are not that easy. Most will impose severe penalties such as:
- severe fines in the hundreds of dollars
- suspension of a driver’s license and registration
- vehicle impound
- potential jail time
Each state is obviously different in the penalties they impose and the means by which they do so. But make no mistake about the fact that driving without insurance is not taken lightly. If you’re caught, you will pay.
Future Consequences
In addition to the immediate consequences of having no insurance, there are some future, long term consequences as well. First off is the fact that an insurance violation will most certainly result in higher rates on future policies you purchase within the next couple of years.
Second, insurance companies do have the right to reject you for a policy if you have a no insurance citation on your record. You may try to get a policy through half a dozen companies only to be rejected by all of them. In such a case you would be left to purchase your car insurance from a company specializing in high risk; this means higher rates.
Third, repeat offenses can land you in jail in many states. Once that’s on your record it will forever affect lots of things including job prospects, housing options, and so on.
While it’s true many Americans have a hard time finding cheap car insurance they can afford, being caught without it is even more unaffordable. Think long and hard before getting behind the wheel of an uninsured vehicle. It’s not worth the potential fines, suspensions, and jail time just to get where you’re going.
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