Uninsured Driving Penalties: The Real Financial Costs of Being Uninsured

If you have ever been in an accident caused by an uninsured driver, you know the frustration of not being able to get your property damage and/or medical bills paid by the person responsible for creating the mess for you. The vast majority of states along with Washington, D.C. require car owners to purchase liability insurance.  Only New Hampshire and Wisconsin do not have compulsory auto insurance liability laws.  Where insurance is mandatory, each state sets out its own minimum requirements.  Almost every state requires you to have Bodily Injury Liability insurance, and every state has financial responsibility laws that require you to be able to have sufficient assets to pay for any damages you cause in an accident. Still, there are many people who break the law and fail to carry insurance, and that hurts all of us.

Penalties and Consequences
In many states, you cannot register your vehicle with the Department of Motor Vehicles without auto insurance.  In most states, you must show proof of insurance when pulled over for a traffic offense, or at the scene of an accident.  Much like the requirements for having insurance, the penalties for the failure to carry auto insurance do vary from state to state.  In some states, your car may be impounded.  In others, heavy fines from $150 up to $500 may be imposed.
 
The consequences can be far more serious if you are involved in an accident and do not carry insurance. Most drivers are insured, but many drivers either feel they cannot afford the premiums, or would just rather not pay. If you are uninsured and you cause an accident, you may have to comply with financial responsibility laws including having to pay out of your own pocket for any injuries or damages you cause to others.  This can amount to hundreds or even thousands of dollars, even for a minor collision. These consequences have the potential to drive you into bankruptcy and completely ruin your life.

While it is true that insurance can be expensive, most insurance companies will sell you a bare bones policy, which covers you with the minimum liability insurance limits allowed by law in your state.  Talk to an agent or go online and get some quotes before it’s too late.  Don’t be one of the irresponsible uninsured.  Do the right thing for yourself, your family, and for other drivers as well as pedestrians.