Don't Drive without Insurance

Driving without car insurance is a risky proposition. Although it might save you money in the short run, the potential long-term consequences make these savings not worth the risk. It's the same principle as living without health insurance. For one, you could face serious legal repercussions for driving without car insurance. But legal woes are probably the least of your worries. If you are uninsured and are in an accident that is your fault, you will be financially responsible for paying for the damages and injuries of the parties involved. Unless you're independently wealthy, that means one minor fender bender could jeopardize your assets and put you on the brink of bankruptcy. In this post, we'll explain why driving without auto insurance is dangerous and expensive.

Legal Issues

Most states require that you carry minimum levels of liability coverage. If you are caught driving without the mandatory levels of insurance, you could face an array of unpleasant consequences. In some states, your vehicle tags may be revoked and the car impounded. Other states charge uninsured drivers heavy fines, usually ranging from $150-$500. You might also have your license revoked for a certain period of time if you fail to provide proof of insurance.

Financial Responsibility

Though not every state requires you to carry liability insurance, all states do have at least a financial responsibility law. Those states with financial responsibility laws do not require drivers to have liability coverage with a car insurance company, but they do require that all drivers prove that they are financially able to cover their liability in the event of an accident. In these states, any of the following items qualifies as proof of financial responsibility:

• Self-insurance certification
• Certificates of deposit
• Surety bonds

Lapses in Coverage Mean High Premiums

If you're driving without car insurance, you will have lapses in coverage on your record. That means that if you ever apply for an auto insurance policy, your prospective insurer will find this out. To insurers, lapses in coverage are red flags for high-risk drivers. Any lapse in coverage, no matter how short, could result in sky-high premiums or your car insurance application being denied.