What Happens if You Don’t Have Auto Insurance?

For most people it is unimaginable to drive without vehicle insurance. However, about 14% of the US motorists don’t have coverage. They have already gone pass that and now asking what if I got caught? Actually, they may be considering the question everyday but they cannot get out of this situation due to their circumstances. It is difficult to judge people if you don’t know the full story.

Again, many people keep renewing coverage year after year as a habit and hardly ever ask what would happen if they didn’t. They just know that it is something they need otherwise they cannot drive. For everyone’s sake, let’s see what happens if you don’t have car insurance?

  1. You Don’t Have the Protection

One of the first things you should remember is that it provides invaluable protection from many unknown risks. The moment you invest a large sum of money on an automobile you stand to lose all or some of it in a traffic accident, fire, theft, storm damage, flood and many other perils.

Most importantly, you can potentially cause serious injuries or financial damages to other people with your vehicle the moment you get behind the steering wheel. And you are responsible to compensate those people you caused harm as a human being and legally. Most people buy an auto policy so that they can transfer all these risks to their carriers. And that allows them to sleep better at night.

  1. It Is A Legal Requirement for Every Vehicle Owner

You don’t actually need to drive it to be required to comply with the state laws that enforce minimum liability car insurance coverage. The moment you purchase a vehicle you are liable to comply with the rules. Most states will not register a vehicle without proof of it.

Furthermore Department of Motor Vehicles keeps a check on them and requires carriers to inform of any policy lapses. In other words, they know if it is insured or not and they don’t care if you don’t use it or not. They usually send you a letter asking why you didn’t buy it yet or let a policy lapse. If you don’t use it and it is kept in a private land you can fill an “Off-Road” form to say that you don’t need it since it is off the public roads. This may release you from vehicle owner’s responsibilities under financial responsibility laws.

Buying insurance for the vehicle you own isn’t usually enough. You need to make sure that anyone who is driving it with your permission is covered too.

  1. Pay Penalties if You Get Pulled Over

The police can still catch you if you somehow managed to go undetected by DMV. Then, you will have to pay fines, you may get points on your license or even it can be suspended. Also, the police can impound the car you are operating. Eventually you will have to buy auto insurance and pay the fines to get it released.

  1. Other Consequences

People may not realize but they can end up paying thousands of dollars when they get caught driving with no liability. They have to pay fines and legal defence because they will be taken to court. Furthermore, they may suffer other consequential losses they never thought of. For example, a suspended license and impounded automobile may mean that they cannot get to their work and lose it. You also lose face with friends, colleges, boss and children when they know your license is suspended.

The best way to avoid troubles with the authorities and making sure that you have protection is to insure the vehicle and anyone who will use it. Not having isn’t worth the trouble, especially when there are various premium payment plans to help you spread the cost. You can get a few quotes right here and compare the costs.