Can You Drive Without Car Insurance?

Car insurance is a legal requirement in nearly all states, ensuring that drivers can cover the costs associated with accidents. While the specific coverage requirements vary by state, most mandate a minimum amount of liability coverage. Some states also require uninsured or underinsured motorist coverage, personal injury protection, or medical payments coverage.

New Hampshire is unique in that it does not have a blanket mandate for car insurance. However, drivers must prove they can meet the state’s financial responsibility requirements if they cause an accident. In Virginia, drivers can opt out of the insurance requirement by paying a $500 uninsured motorist fee annually.

What Happens if You Drive Without Insurance?

Driving without insurance can lead to severe consequences, including fines, license suspension, vehicle impoundment, and even jail time. The penalties vary by state and the number of offenses. Here are some potential repercussions:

• Fine: Penalties can range from $50 to $5,000, with higher amounts for repeat offenses.
• Suspension: Your license or registration could be suspended, or your vehicle impounded, adding extra costs to get back on the road.
• Jail time: In some cases, driving without insurance can be a misdemeanor or felony, with jail time ranging from 10 days to a year.
• SR-22: An SR-22 form, filed by your insurance company, proves you have coverage. Not all insurers offer SR-22 coverage, and those that do typically charge higher rates.

If you have an outstanding loan on your vehicle, your lender will require full coverage, including liability, collision, and comprehensive insurance. Failing to maintain the required coverage could lead to vehicle repossession.

Getting Pulled Over Without Insurance

If you’re pulled over for a moving violation and cannot provide proof of insurance, you’ll likely receive a citation, which will be added to your driving record. This citation may include a fine and possibly jail time. Additionally, your license could be suspended until you obtain insurance, usually with an SR-22.

In some cases, the officer may impound your vehicle, requiring you to pay to retrieve it. Your lender could also repossess the vehicle if you fail to maintain the required coverage.

Getting into an Accident Without Insurance

Causing an accident without insurance results in harsher penalties than being pulled over. You’ll be responsible for paying for any damages or injuries caused, which could amount to hundreds of thousands of dollars. If you cannot pay, the other driver or their insurance company could sue you.

How to Get Car Insurance

To avoid the consequences of driving without coverage, it’s essential to obtain at least the minimum amount required by your state. Here are some steps to help you get the best coverage:

Shop Around

Request online quotes from at least three to five insurers to improve your chances of finding a low rate. Comparison tools can help you compare personalized quotes from multiple providers in one place.

Choose Your Coverage Amounts

Determine the types of coverage you need to satisfy legal and lender requirements. Consider getting more than the minimum requirements to ensure full protection in case of an accident. For certain types of coverage, you’ll have an out-of-pocket deductible before the insurance kicks in. A higher deductible can reduce your premium, but make sure you can afford it in the event of a claim.

Look for Discounts

Insurance companies offer several discounts that can reduce your costs. Visit each insurer’s website to find out what discounts you’re eligible for.

Choose a Carrier and Buy the Policy

Once you’ve determined which provider offers the best value, submit a full application and purchase the policy through its website. You can then print your proof of coverage or request it in the mail.

The Bottom Line

Having car insurance is crucial not only to avoid legal and financial consequences but also to protect yourself in the event of an accident. While auto insurance can be expensive, there are ways to save on coverage by shopping around, getting discounts, reducing coverage amounts, dropping optional add-ons, and increasing deductibles. In many states, improving your credit score can also help lower your insurance premiums.

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