“Why You Should Never Drive Without Car Insurance”

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Can You Drive Without Car Insurance?

Nearly all states mandate car insurance for driving on public roads. However, coverage requirements can differ based on your location. Most states require a minimum amount of liability coverage, but the specifics can vary. Some states also require uninsured or underinsured motorist coverage, personal injury protection, or medical payments coverage.

New Hampshire is unique in not having a blanket mandate, but 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 legal requirement by paying a $500 uninsured motorist fee annually.

What Happens if You Drive Without Insurance?

The penalties for driving without insurance can vary by state and the number of offenses. Generally, you can expect the following:

• 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: 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 usually require full coverage. Without it, you breach your loan agreement, and the lender could repossess the vehicle.

Getting Pulled Over Without Insurance

If pulled over for a moving violation, the police officer will ask for your license, vehicle registration, and proof of insurance. Without proof, you’ll likely receive a citation, a fine, and possibly jail time. Your license may be suspended until you obtain insurance, usually with an SR-22. The officer could also impound your vehicle, and your lender might repossess it.

Getting into an Accident Without Insurance

If you cause an accident without insurance, the penalties are typically harsher. You’ll be responsible for paying for any damages or injuries caused. Depending on the accident’s severity, you could owe hundreds of thousands of dollars. If you can’t 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 get at least the minimum amount required by your state. Here are some steps:

• Shop around: Request online quotes from at least three to five insurers to improve your chances of getting a low rate.
• Choose your coverage amounts: Determine the types of coverage needed to satisfy legal and lender requirements. Consider getting more than the minimum to ensure full protection in an accident.
• Look for discounts: Insurance companies offer various discounts that can reduce your costs. Visit each insurer’s website to find out what you’re eligible for.
• Choose a carrier and buy the policy: Once you’ve found the best value, submit a full application and purchase the policy through the provider’s website. Print your proof of coverage or request it by mail.

The Bottom Line

If you own or regularly drive a vehicle, having insurance coverage is crucial to avoid legal and other consequences and protect yourself in an accident. While auto insurance can be expensive, you can save 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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