Why You Need Insurance
Driving without insurance can have serious legal and financial consequences. Learn why carrying auto insurance is a must.
Mandatory Insurance Laws
Most states have mandatory minimums for the amount of liability coverage drivers must carry in order to drive legally. Usually, these laws require certain levels of both bodily injury and property damage liability. If you are caught driving uninsured in these states, you could face an array of legal consequences. For one, you might have to pay steep fines. These fines usually start at $150-$500, and you will face heftier fines and possibly even jail time for multiple infractions. In many cases, your vehicle tags will be taken away and your car impounded. Commonly, your license will also be suspended for a certain period of time. Obviously, the inconvenience and expense of driving without insurance is a strong reason to look into auto insurance rates.
Proof of Financial Responsibility
Not all states have mandatory auto insurance laws, but all states do have at least a requirement to show financial responsibility. Those states with financial responsibility laws require drivers who choose not to carry car insurance to prove that they would be financially capable of covering their liability in an accident. They would need to show sufficient financial means to pay for the damages and injuries to others that they might inflict in a collision. However, very few drivers would be financially able to cover their liability, so getting auto insurance rates is probably the better decision in the long run. Here is what a driver would need to provide in order to prove financial responsibility:
- -Surety bonds
- -Self-insurance certification
- -Certificates of deposit
Financial Consequences
Driving uninsured is a huge financial risk for many reasons. First, you would have to pay hefty fines if you were ever caught driving without insurance. Unfortunately, though, these fines pale in comparison to the financial consequences you would face if you were involved in an accident. If you were at fault in the accident, you’d have to pay for the injuries and damages you caused the other parties involved. Even with minor accidents, these expenses could be enough to push you into serious debt or even bankruptcy. In addition, you could be sued by one or more of the other parties, in which case your assets might be put in jeopardy by a lawsuit judgment against you. You are better off getting auto insurance rates, finding an affordable policy, and protecting your assets from these unpleasant consequences.
Read about how to file an insurance claim when you need to use your vehicle insurance.
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