Learn about the consequences of driving without auto insurance coverage.
Once you are caught driving uninsured, your license may be suspended until you acquire auto insurance.
You can be financially responsible for the medical bills and car crash expenses of the victim.
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.
Drivers caught driving without auto insurance are given a ticket by highway patrol officers and can often incur serious fines.
Naturally, some drivers and specific cars are more likely to get involved in accidents than others. As a result, auto insurance firms consider them to be high risk making them more expensive to insure. High-risk auto insurance policies are specific auto insurance policies designed for drivers who are deemed to be a higher risk to insure due to their past driving records. Due to the greater risk involved in insuring them, insurance companies provides them insurance cover at higher premiums. Alternatively, some companies opt not to cover such drivers at all.
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.