The Risks and Penalties Of Driving Without Insurance

Almost all states require drivers to carry proof of financial responsibility when driving. Failing to do so will have unpleasant consequences. Check out the risk and penalties of driving without insurance or proof of insurance. And if you ever feel tempted to renounce the coverage, keep in mind that there is always a better alternative: scanning the market, using a free online auto insurance quote.

free online auto insurance quotesThe first time you are caught driving without insurance, you’re looking at a minimum $5000 fine (up to a max of $25,000). Getting caught again could result in fines upwards of $10,000 to $50,000, as well as possible license suspension and even vehicle impounding.  As you can imagine, the fine’s value varies by state. Not to mention that if you were caught due to a traffic violation, you will get another fine and more license points.

If you caused an accident and you are caught driving without insurance, the consequences will be even more dire. Plus, you will have to pay additional legal fees, since it is likely to be sued by the other party. Uninsured drivers will have to pay for hiring a lawyer, when facing a court case. Not to mention that after the case is settled, and the uninsured driver loses, the victim will demand compensation. Overall, the entire financial establishment of the uninsured driver will be shaken.

Next, the uninsured driver will have to carry and SR-22 form.  SR-22 is issued to drivers who are caught without insurance and usually lasts three years.

Once you have an SR-22, then insurance companies will know that you have previously driven without insurance and you got caught. This would make you a high-risk customer to insure, meaning your monthly premiums are more likely going to be higher. Since your driving record is permanent, when you finally do attain car insurance, your record will reflect poorly on you. So, any coverage gap will certainly make you pay more later on.

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