Uninsured Drivers
Auto insurance
is a compulsory legal requirement for all drivers in every state except New
Hampshire. As a result, all drivers are required to carry this minimum
requirement to enjoy the privilege of driving a car legally. However, not all
drivers observe this legal obligation. In 2012, the Insurance Research Council
(IRC) found that an average of 12.6 percent of all drivers does not have any
car insurance. As a result, getting involved in a collision with such drivers
makes insured drivers vulnerable to additional expenses.
To cater for
such accidents, concerned motorists may consider acquiring uninsured motorist
coverage. This is the insurance policy that compensates you if you get involved
in an accident where the at-fault driver is uninsured.
Uninsured
motorist coverage offers two types of protection. These include bodily injury
and property damage.
Bodily injury
helps to cover costs resulting from the injuries you sustain from a crash
caused by an uninsured driver. In some states, uninsured motorist coverage
extends to a family member inside your car at the time the accident occurred or
your passengers.
Property damage
covers costs related to repairing your vehicle after a crash with an uninsured
driver. However, this protection is unavailable in some states.
The
Importance of Maintaining Insurance Coverage
1. Continuous insurance coverage shows some
stability. Subscribing to long term auto insurance coverage helps to lower your
monthly premiums.
2. Auto insurance is compulsory in most
states. In all states except New Hampshire, auto insurance is a basic legal
requirement to all drivers since it helps lower the risk of driving. However,
New Hampshire drivers are also required by the law to show that they can
potentially cater for the effects of road accidents.
3. Insurance ensures financial stability. Auto
insurance is a safety measure since it allows you to get compensated in the
event of a car accident. As a result, it helps to alleviate the risk of
unplanned expenditures as hospital bills and car repair expenses in case of an
accident.
Consequences
of Driving Uninsured
1. You'll get a Ticket
Drivers caught
driving without auto insurance are given a ticket by highway patrol officers.
Even if you were spotted for other offenses such as speeding or driving while
drunk, additional fines and fees are imposed for driving without insurance.
2. You May Get Your Car Towed
If the police
arrest you for driving uninsured, they may decide to bar you from driving and
have your car towed and your car impounded. As a result, you can only get your
car out of impound by providing proof of insurance.
Additionally,
you will be required to pay impound fees as you seek insurance cover. Some
impound may decide to auction your vehicle after 72 hours.
3. Your License can be suspended
Once you are
caught driving uninsured, your license may be suspended until you acquire auto
insurance. Worse still, you have to pay to have it reinstated. Successive
suspensions could result in permanent confiscation of driving license and
having you pay higher rates when you seek auto insurance next since you are
considered to be a high-risk driver.
4. You may be required to Pay Damages out of
Your Pocket
If you're at
fault in a car crash and you don't have auto insurance, you will be financially
responsible for the medical bills and car crash expenses of the victim. Worse
still, the victim can sue you if you refuse to or are unable to compensate
them. As a result, you become responsible for the lawyer fees and court charges
on top of the accident-related expenses. This may lead to the auction of your
property to pay the plaintiff.
