According to a study from the Insurance Research Council, one in eight drivers in the United States is uninsured. This troubling figure has increased every year since 2011, when the uninsured motorist rate was 12.3 percent. Almost every state requires car insurance, and drivers who dismiss coverage can end up costing those who obey the law.

Penalties for Driving without Car Insurance

The punishment differs from state to state, but there are a few common methods used to penalize someone without car insurance:

  • Suspending their driver's license
  • Suspending their vehicle’s registration
  • Issuing a traffic ticket (in addition to any tickets you received when pulled over)
  • Requiring an SR-22 (certificate of financial responsibility) filing
  • Issuing the driver a hefty fine
  • Increasing the driver’s auto insurance premiums

Even though these are the most common penalties, it’s important to check with your state’s DMV or Secretary of State to find out the details.

Getting into an Accident without Insurance

car insurance, car accidentIt’s clear that not having insurance is risky on its own, but if you get in a car accident, the legal penalties can get worse.

In addition the financial strain of fixing your car and dealing with any injuries, you could be held liable if you cause property damage or injury to others. They can sue you for damages and hold you liable for any related costs. If you don’t have the money to cover those costs, your assets (home, car, etc.) could be taken to cover them.

The Bottom Line

You should never operate a car without insurance. The risks of driving a car while uninsured often cost more than the insurance itself. Sometimes, it can be difficult to budget for all the costs of buying a vehicle, but it’s important to take them all into consideration before you sign on the dotted line.

If you’ve taken all the steps to prepare for your next vehicle, but bad credit is in the way, don’t despair. That’s where Auto Credit Express comes in. We can guide you toward a local special finance dealer with our free service. The dealerships in our network are signed up with lenders who can help people in many types of challenging credit situations. Simply fill out our no-obligation auto loan request form to get started today.