What Happens If You Are Caught Driving Without Insurance

Driving without auto insurance is illegal in the United States. Your car must have valid insurance, even if you are just taking a quick journey or changing parking spots.

While the first offense of driving without car insurance or proof of insurance can lead to a fine, repeated violations can significantly escalate the severity of the punishments. Besides legal penalties, you are liable to be sued by the other driver for the damage to their vehicle and any medical bills they incur if you are involved in a car accident without insurance. In this article, we'll discuss the consequences of driving without insurance to help you know exactly what could happen if caught.

Can you drive without car insurance?

Nearly all states require you to have the right auto insurance to be able to drive on public roads. However, coverage requirements may vary depending on where you live. For instance, most states require a minimum liability coverage, though the figures can differ. Some states also require you to have uninsured or underinsured motorist coverage, medical payments coverage, and personal injury protection.

New Hampshire is the only state with a blanket mandate. However, drivers who don't want to pay for coverage must prove they can meet the state's financial responsibility requirements if they cause an accident. While this can allow you to drive without auto insurance, it's usually more expensive than buying a policy. In Virginia, you can opt out of the legal requirement by paying $500 for uninsured motorist coverage every year.

Consequences of driving without insurance

The consequences of driving without car insurance may vary depending on where you live and how many times you have been caught. However, here is what you could face if caught driving without insurance.

Fines and fees

If caught driving without insurance, you might receive hefty fines or fees. If it's your first misdemeanor, you might get between $300 and $1,000 in fines plus a $250 surcharge fee every three years.

If it's your second or more offense, you might receive even harsher fines. You may receive legal penalties between $500 and $5,000 plus a $250 surcharge for three years.

The average annual cost of auto insurance is around $640 for minimum coverage. Therefore, you will spend just as much, if not more, if you have to pay just one fine than if you had acquired insurance in the first place. Furthermore, the fine goes up, sometimes to thousands of dollars, for every offense after that.

License suspension

Besides getting a traffic ticket, your license can be suspended if you are caught driving without insurance. The period of suspension can vary depending on where you live. In some states, it ends once you exhibit proof of insurance or file an SR-22. In others, the DMV or court may suspend your license for a given period based on state laws.

The situations that lead to license suspension also vary from one state to another. Some only revoke your license when you are caught without financial responsibility in an accident. Others suspend your license after a ticket and require proof of insurance within 24 hours.

Reinstating a suspended license can cost a few hundred dollars. On top of other fines or fees, the total cost might equal the annual cost of a car insurance policy. Some states, such as Delaware, also charge you a fee for every past 30-day grace period that your license or registration is suspended.

Vehicle impoundment

A driver convicted of driving without auto insurance may have their car impounded for up to 180 days. Getting your vehicle back will require reinstatement or processing fees. Most impound lots charge you to release your car and then charge additional fees for each day it sits in their parking area.

Jail time

Driving without insurance is considered a misdemeanor offense and can land you in prison. Jail time ranges between a few days and a full year, depending on where you live and the number of times you have broken the law.

Even one day in custody is too much! Furthermore, you won't be able to work from jail, meaning you will miss out on your paychecks or even lose your job. On top of the emotional stress of your arrest, this might put much financial stress on your family.

SR-22 requirement

Texas drivers must carry a Financial Responsibility Insurance Certificate, an SR-22. This is a form your insurance company should file with your state's Department of Motor Vehicles to prove that you have coverage.

Every driver should have at least $25,000 for coverage of property damage such as car damage, $30,000 of auto liability coverage for injuries to a person, and $60,000 for injuries per accident. Drivers who are uninsured or don't have enough car insurance to pay for the damage or injuries might face legal action.

Increased insurance rates

Insurance companies typically view a driver convicted of driving without car insurance as a higher risk. The driver is likely to pay higher auto insurance premiums.

If two or more insurance companies have turned you down, you can apply for the Texas Automobile Insurance Plan Association (TAIPA). However, TAIPA coverage is limited and might be more expensive than other carriers.

If you let your auto insurance lapse, the insurance company will notify the DMV. This information will be available to any law enforcement officer who accesses the TexasSure database. If you get pulled over, the officer controlling the traffic will quickly discover that you have no insurance, which is a crime under Texas law.

Financial responsibility for accidents

As stated above, the legal fines for driving without insurance can be costly. However, the cost of an accident while driving an uninsured vehicle can be much higher and might even be enough to get you into debt or bankruptcy.

If an uninsured driver causes an accident, they will be financially responsible for the crash. The at-fault driver might be held responsible for the lost wages, medical bills, and pain and suffering the accident victims incur. These costs could add up to thousands of dollars in cases involving severe personal injuries, loss of quality of life, trauma, loss of income, and emotional suffering.

If the driver who injured you wasn't insured, you might need to file a claim against your Personal Injury Protection (PIP) policy. This helps pay for your medical bills and those of your passengers, no matter who caused the accident. An experienced personal injury lawyer can help you determine who is financially liable for your injuries and discuss your legal options, including filing a personal injury claim.

How to find the best auto insurance

It's essential to get at least the minimum amount required by your state to avoid the potential consequences of driving without insurance. Here are a few tips for finding the best auto insurance that meets your needs.

Shop around

Shopping around for the best auto insurance is vital in finding affordable rates.  Get at least three quotes from various insurance companies to increase your odds of getting lower rates. Most companies allow you to get a free online insurance quote so you can compare personalized quotes from multiple insurers in one place.

Choose your coverage amount

While comparing your options, decide what types of coverage you require to satisfy legal and lender requirements. After that, consider how much more you can get above the minimum requirements to ensure you are fully covered in the event of an accident.

You will have an out-of-pocket deductible for some coverage before the insurance chips in. While a higher deductible can lower your insurance premiums, ensure you can afford it in case of a claim.

Review the financial health of insurance providers

Another essential aspect to look at is your prospective insurer's financial health and stability. You want to ensure your insurance company can pay for it if you file a claim.

You will also want to ensure you are doing business with an insurance company that has served policyholders for a long period. Use independent online rating agencies such as Fitch or A.M. Best to compare the creditworthiness of your prospective insurance companies.

Look for discounts

Most insurance companies offer discounts that can reduce your costs. For instance, some insurers offer discounts to drivers who meet annual mileage thresholds or those who complete defensive driving courses. Your car could also qualify for a discount if it has an anti-theft device. Visit each insurance website to get more information and find out what discounts you are eligible for.

Summing it up

Driving without auto insurance can greatly impact your life unless you live in a state that doesn't require insurance. If caught, you can face several serious consequences, such as revocation of your driving privileges, hefty fines, or even jail time.

Therefore, avoid the costs, penalties, and stress of being caught driving without auto insurance by staying up to date with your coverage. This will not only ensure you meet your state's requirements for legal driving but can also help protect you from the financial fallout of causing a road accident.