The Risks of Driving with No Car Insurance Policy

Do you know that there are vehicles with no car insurance policy on the road? Even though this sounds incredible, there are people that choose to drive without any car insurance policy in place. Why will someone decide to drive a vehicle when he is aware that it has no car insurance policy? Well, some of them think they are cutting costs. This practice is totally wrong. Of course, some of those people that drive with no car insurance in place do this in ignorance. It is either they don’t know its implications at all or they don’t know the magnitude or the weight of the offence. Unfortunately, there is no ignorance in law. That you don’t know the implication of driving without insurance cover does not exempt you from the penalties that it attracts. There is no short cut to the interpretation of driving without insurance cover.  It is simply a violation of law. Besides, you are putting yourself and other road users at risks if you drive without insurance. The governments that make it mandatory to have every car insured know what they are doing. That is why they even made it a law. If it is optional, a lot of people will not bother to insure their cars and this will put the lives of many people in danger.  So, if you are driving or still planning to put the car with no car insurance on the road, you may need to think twice as you may be faced with any of these penalties:

Consequences of No Car Insurance

Fines

Driving with no car insurance attracts huge fines. The amount of fines that you will be asked to pay if you are caught may even be more than the insurance premium you are trying to avoid. At the end, you will still be forced to insure the car. The fine varies from state to state.

Suspension of Driver’s License

You may be suspended from driving for a period of time. You may think that this punishment is light until you find yourself in a situation where you cannot drive. The law does not permit anyone without a driver’s license to drive. Imagine that kind of inconvenience when you cannot quickly get to a place you want except someone drives you. This may not be a permanent thing. But you will be expected to meet certain conditions, including payment of fine, before your license is finally reinstated. So, before you drive any vehicle, it may be important to find out if the vehicle is properly insured.

Suspension of Vehicle’s Registration Number

This is as good as having your vehicle impounded. If your vehicle’s registration number is suspended, you are not expected to put the vehicle on the road all through the period it remains under suspension. This means that the car will not serve the purpose for which it was bought.

Imprisonment

It depends on the law regulating the car insurance in your state; you can be sentenced to serve a jail term if you are caught driving with no car insurance. The situation becomes worse if you get involved in an accident. Driving with no car insurance policy is a clear violation of law. The same way somebody who breaches other laws can be punished under the law, you can be punished under the laws that regulate insurance in that state.

High Insurance Premium

Car insurance companies consider many factors before arriving at insurance premium that you will be asked to pay. If you have history of tickets as a result of traffic laws violation which include driving with no car insurance policy, the insurance premium you will be asked to pay will definitely increase.

Litigation

If you are involved in an accident while driving with no car insurance, the other person may sue you. If you are found negligent, you will be personally held responsible for any damages involved. This may even require that you sell your personal properties in order to settle the claims from the other party.

Read Also: Minimum Car Insurance Coverage Requirements by State

With all these penalties, you can now ask yourself whether it is actually worth it to drive a vehicle with no car insurance. Avoiding car insurance is not a good way of cutting costs. At the end of the day, you tend to pay more. If cutting costs is your main objective, you better opt for minimum car insurance requirements. The minimum car insurance requirements vary from state to state. You can find out the one that is applicable to your state.

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