Why Driving Without Insurance is Bad


Auto insurance safeguards both other road users and you as a driver. You can decide not to get vehicle insurance in order to make some short-term savings. But if you are caught or have an accident, you might end yourself having to pay thousands of dollars. We want to help you understand the hazards before you decide to drive without insurance so that you can make a better-informed decision.

The consequences for operating a vehicle without insurance differ by state. If you're stopped and don't have insurance, you could have to deal with any of the following, depending on where you drive. Penalties include fines, license suspension, vehicle impoundment, and time in jail. No matter what state you drive in, you'll probably face greater penalties for persistent infractions. The bottom conclusion is that there will almost always be repercussions for driving while uninsured.

Body injury liability: This insurance covers physical injuries to others when you cause an accident while driving your car and helps cover those costs. Liability for property damage: This covers expenses incurred when you cause an accident and cause damage to someone else's property. Uninsured/underinsured motorist coverage: If you suffer injuries in a collision caused by a driver who has little or no insurance, this helps cover your medical expenses. You can decline or opt-out of this coverage in several states. Driving without insurance may be expensive from a financial standpoint, sometimes even more so than what insurance would have covered. If you are stopped and cannot show evidence of current auto insurance, you risk paying fines. 

You would probably have your license completely suspended rather than lose points. The first is that not all states have a point system for infractions. For instance, Louisiana does not use a point system for recording traffic offenses on your driving record. Second, in places with point systems, moving or traffic infractions are normally recorded as point deductions, but the punishment for driving without insurance is typically a suspended license and registration—usually after a second or third offense. The majority of states consider a conviction for violating vehicle insurance laws to be a misdemeanor. Although misdemeanors are less dangerous than felonies, depending on the severity of the offense, they may still result in jail time. A first-time driver without insurance infraction wouldn't typically be considered a misdemeanor. A second or third conviction for driving without insurance would likely result in jail time of up to six months in a state like New Mexico.