Most states in the USA have laws mandating car insurance, with each state establishing its separate coverage amount and penalties for failure to have insurance. Federal law requires all drivers to have car insurance.
If you get pulled over without insurance even if you are a first-time offender, you would be charged with fines. Fines can reach as high as $5000 in some states. Also, you can face license suspension, registration suspension, and even jail.
It is better to have car insurance mandatory irrespective of the state you live in. One needs to be sure and careful to find an insurance policy right away if one owns an uninsured car.
- In addition, proof of insurance or proof of financial responsibility is mandatory to legally drive a car. If you don’t carry any proof of insurance then also you will face penalties for it. In general penalties for failure to provide proof of insurance are less severe than actually driving uninsured.
- Various expenses related to the car such as repair and medical expenses from the accident can easily cost thousands of dollars even exceeding $1 million if any serious injuries have occurred. Having car insurance can save you from such heavy expenses.
There exist a large number of car insurance companies. Choose from the best auto insurance companies providing protective insurance for your automobiles to help protect as well as reimburse yourselves as and when an unforeseen and unfortunate event occurs.
Let’s see the consequences of not getting car insurance in detail:
- License suspension – In some states, your license can be suspended and may not be reinstated until you get car insurance. For ex- If you don’t have car insurance and cause an accident then you could lose your license for up to 1 year.
- Fees and Fines – If your license is suspended revoked or your car is impounded then you will have to pay fees to resolve these problems and also pay fines.
- Jail time-Yes it can land you in jail, but not for first-time offenders for sure. For ex- If you drive or allow someone to drive your uninsured car then you could spend up to one year behind bars.
- Medical expenses – If you cause an accident that resulted in injuries then you could be liable for medical bills. According to the National Association of Insurance Commissioners, the average injury claim was $20,453. Also, if you don’t carry cash to pay up, you could be sure, to put your assets, savings, and home up to your own risk.