subject: Consequences of driving without car insurance [print this page] Consequences of driving without car insurance
A majority of drivers view car insurance grudgingly as something they would really love to avoid buying. "It is a gamble" they say; "so many people spend their entire lives paying premiums without having to make a single car insurance claim!" However when you are operating something that weighs atleast two tons and can cause serious damage (or be damaged) if it gets out of control, be prepared to bear the financial implications of driving without car insurance. This might sound far- fetched, but studies show that most people tend to get into some kind of accident atleast once in 7 years.
Let's take a look at some possible scenarios where you can suffer losses if you're driving without car insurance:
You get into a car accident where you are found at fault: If you were driving without car insurance, you will have to pay the other driver for all the property damage, lost wages and medical expenses out of your own pocket. Now supposing you hit a successful doctor or a school bus full of kids; if you cannot pay out of pocket, your personal assets can be seized to pay off your dues. Can you imagine what happens if the parents of those kids sue you for medical expenses, or the doctor sues you for loss of wages due to confinement? Overnight you stand to lose every asset you've built in your life. Because the chances of this happening are so high in a sue-friendly society, most US states have made it mandatory to carry minimum liability car insurance so that you can atleast bear the cost of damages you have caused to others if you are found guilty in a car accident.
If you get caught for DUI, speeding, or any other traffic violation, and it's also found you've been driving without car insurance; you can have to shell out a fine, or get your car registration suspended. If this happens more than once, the penalty is going to get more severe with each successive time. You could have your license revoked or might even have to spend time in prison. Once you are caught driving without insurance, it is going to get exceedingly difficult to find a company that will sell you car insurance at affordable rates later. Not exactly a very comfortable situation is it?
You get into a car accident where the other driver is at fault: This is the worst case scenario. You're not at fault, someone else is, and they are also driving without car insurance. You have no choice but to pay out of your pocket towards your damages unless you intend taking them to court and filing an expensive law suit. What's even worse is that in some states even if you're not at fault in an accident, and it's found you were driving without car insurance, you are automatically treated as at fault! So if your excuse for not getting car insurance is that it's too expensive, you can atleast stay legal by going with the minimum liability insurance mandated by the DMV in your state. OH car insurance for example needs you to carry a minimum Bodily Injury Liability of $12,500 per person, limited to $25000 per accident and a property damage liability of $7500, which doesn't cost much. Yet almost 16% drivers on OH roads are still driving without car insurance!
Your car is stolen or damaged in a freak weather related accident: Cars get stolen all the time, new ones to be resold and old ones for their parts. Winter driving related accidents are so common and anyone who has ever driven in snow will know how often cars skid and get banged up. If you car gets damaged, do you have the necessary funds to take care of your losses? If your glitzy new car gets stolen, can you buy another one out of pocket right away?
Think about all this when you try to save money by not buying car insurance, or don't get your policy renewed right away when it lapses. Accident happen all the time so it's always good to stay prepared for the worst.
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