Consequences of Driving Without Insurance

Car insurance can provide you with personal, financial and medical protection. Especially if you put more than 15,000 miles per year on your car and spend a lot of time on the road, you are more likely to be involved in a car accident than another driver who drives less miles and spends less time on the road. Therefore, auto insurance is absolutely necessary to offer you protection against potential bodily injuries and property damages.

There are minimum levels of required auto insurance per State, and every State except New Hampshire requires drivers to have a basic auto insurance policy. Typically, a basic auto insurance coverage includes bodily injury coverage, property damage coverage, medical expenses coverage, collision coverage, comprehensive coverage and uninsured motorist coverage/ underinsured motorist coverage.

Driving Uninsured? There Are Consequences

Driving without insurance is misdemeanor, which is "a less serious crime, generally punishable by a fine or incarceration in the county jail for less than one year." So, if you drive without insurance and you get involved in a car accident, you may face monetary fines, legal penalties or even jail time.

The following are the consequences of driving uninsured.

1. Auto liability Insurance

Auto liability insurance is the most common type of auto insurance. As a motorist you are responsible for your own safety, but also for the safety of the people who ride with you in the vehicle and other people on the road. Typically, auto liability insurance comprises of two different policies: bodily injury liability and property damage liability. These offer you protection against the cost of bodily injuries and property damages you may cause to yourself and/or to third parties when involved in a car accident.

If you drive without insurance and you cause bodily injuries or property damages to third parties, you may face serious financial consequences that can put you in a financially compromising situation. To know the limits of financial reimbursement for individual bodily injury, injured third parties and damaged property make sure to read the three numbers, known as split limits of liability insurance that are typically demonstrated as 15/30/10 or 20/40/10 etc.

2. Monetary fines

The monetary fines associated to uninsured driving are exceptionally high. According to the National Association of Insurance Commissioners (NAIC), imposing large fines best assists to the enforcement of auto insurance requirements.

The exact amount of the fine varies by state, but typically, the monetary fines for driving without insurance are:

• $5,000 fine plus 25% surcharge = $6,250 for first conviction
• $10,000 fine plus 25% surcharge = $12,500 for a second conviction

3. Legal penalties

In addition to monetary fines, many states impose legal penalties. These may include the suspension of your uninsured's vehicle registration and/or suspension of your driver's license for up to one year. Moreover, points may be taken out of your driver's license and your uninsured vehicle may be impounded.

4. Jail time

In some States, repeat offense for driving without insurance can send you to jail. Jail time can be up to 30 days depending on the situation and the state you live in, but you will be required to appear in front of a judge and possibly be charged with monetary fines, jail time or both.

Overall, driving without insurance is a serious legal and social offense associated with high monetary fines, legal penalties or even jail time. A 2011 study by the Insurance Research Council (IRC) estimates that nearly 14.3% (1 out of 7) drivers in the United States are driving without insurance. This can be explained by the fact that auto insurance, in some cases, may be expensive. However, if you do your research, shop around for auto insurance and compare auto insurance quotes, you can come up with an affordable auto insurance premium and have the best auto insurance policy. Besides, the risk of being caught driving uninsured and the monetary fines associated to uninsured driving will definitely outweigh the cost of purchasing auto insurance policy.

Sources:

http://www.autoinsuranceindepth.com/standard-coverage.html

http://www.ehow.com/about_6600001_penalty-driving-uninsured.html

http://www.ehow.com/list_5974715_consequences-driving-insurance.html