To anticipate spending too much money on medical expenses and car repairs, it’s a good idea to purchase insurance coverage. In the event of an accident, other people may also be at risk. If you are at fault, other people involved in the accident may file lawsuits against you. This particular circumstance will force the auto insurance company to handle all the necessary requirements, for example, providing an attorney, paying court fees, etc.
The insurance company takes away the hassle, so you can go about your daily business without worrying too much about problems. Another reason is that driving without insurance is basically illegal and there will be penalties for it. Please note that penalties vary from state to state. The difference can only be in terms of specific details, as directed by your state’s DMV. All states have the same penalties, but there are differences in the amount of the fines, the procedures for reinstatement insurance, etc. Some of the more common penalties are briefly described below.
Driving ban and registration suspended
If you are caught driving without valid insurance, you will be banned from driving and your vehicle registration will also be suspended. There is a very simple rule: if the car does not have insurance, the vehicle does not have a license plate either. Generally, you must turn in the vehicle’s plates to the local DMV. In certain states, such as New York, auto insurance must be provided by a licensed company, which means your insurer must be registered or licensed with the New York State Department of Financial Services.
Each state has a local insurance department where you can get a list of licensed insurers. Be sure to purchase coverage only from listed auto insurance companies to obtain valid proof of insurance. In New York, insurance coverage provided by any insurer of any other state will not be considered valid. It makes sense since each state has different details on traffic regulations. If you drive without insurance, New York State will suspend your vehicle registration for a certain period of time.
If your registration suspension exceeds 90 days, your driver’s license will also be suspended, meaning you will no longer be able to drive any vehicle until your driver’s license is reinstated. In New York, you must pay a fee of $25 to $50 to reinstate your driver’s license. It’s best to turn in your plates to the New York DMV before your insurance coverage ends; then you will get a receipt to prove that you have already turned in the plates. This rule also applies even if your car is in storage or parked on public roads.
The car is towed
Except for New Hampshire, every state in the United States penalizes uninsured drivers. However, each state implements a different set of rules regarding fines and other penalties. If you commit a traffic violation, your car will be stopped and the officer will ask you to present your driver’s license, vehicle titles, and proof of insurance. You will be found based on the offense. In most states, if you don’t show proof of insurance, your car will be towed and impounded.
Since you were driving the car when it was pulled over, you will be responsible for paying storage fees and fines to get the car back. Depending on the state where you live, the total amount can be thousands of dollars. Considering you also have to purchase insurance before you can repossess the car, it’s safe to say you’ll be spending more money on top of fines and storage fees. You will usually need at least some liability coverage to get the car back. However, if your driver’s license is suspended due to traffic violations such as DUI (Driving Under the Influence) or other violations, you may need to bring someone with a valid driver’s license.
You can bring the original insurance document, a copy of it, or just fax it in, according to the DMV. Also make sure you bring enough money to pay all charges. Instead of paying thousands of dollars, it is better to purchase insurance coverage that is likely to be much less expensive. You can use the online car insurance calculator to estimate the price of insurance policies from almost any insurer.
SR-22 Requirements
Again, depending on the state you live in, proof of insurance can be presented in different ways. One of the most common is the SR-22 document, which basically shows that you have the minimum minimum liability requirement to be considered legal to drive. There are some situations where the SR-22 is required, such as when you are caught driving under the influence, are at fault in an accident, commit too many traffic violations, or have an invalid driver’s license.
If you must obtain an SR-22 document, you will need to maintain the minimum insurance requirement of the state in which the document is issued and keep the document generally for 3 years, even if you move to other states. If in any event your insurance lapses or is cancelled, your vehicle registration and driver’s license will be suspended again. SR-22 requirements may be different from state to state, but you can ask your local DMV or insurance company for more details.
In addition to the SR-22 document and the insurance card issued by your insurer, there are two other valid proofs of insurance that you can use. In some states, the preferred form is the electronic database submitted by your insurer to the DMV. Even if your insurance company uses this procedure, you should always carry your insurance card as backup. It is worth mentioning that some people choose not to be insured, but use a different form of liability, which is a large deposit amount. Surprisingly, many states allow people to use this form.
There are two possible methods you can use if you choose not to purchase an insurance policy from any company. First, you must make a large deposit, but the amount varies by state; it is usually from $25,000 to $100,000. Another way is to purchase or secure a bond with a bonding company. The bail bond company must be licensed in your state. If you prefer to use one of those methods, be sure to bring the bond or deposit certificate with you.
Good
The car is de facto yours after you buy it, but you can’t drive it on the road unless you also purchase insurance coverage for it. The car must be covered by at least one liability insurance before it can hit the road. When stopped for any reason, the police officer will ask for an insurance card or other valid proof of insurance.
If you can’t file, you’ll get a ticket in addition to the actual reason you were pulled over in the first place. For example, if you are pulled over for speeding or driving in the wrong lane, and you are currently uninsured, the tickets you receive will include all of those violations. Again, depending on the states, you will probably be able to waive the “driving without insurance” ticket.
The other violations have been committed and there is no way to dismiss the fines. If you can produce proof of insurance within the time period indicated on the ticket, this specific offense may be dismissed. This is possible only if you were actually insured at the traffic stop, but for some reason you did not bring the insurance card or any other proof of insurance. Based on this, even the best car insurance companies in the world will not be able to save you from fines.
In case you were not insured at all at the traffic stop, you have to face an exceptionally high fine. In Ontario, for example, the minimum fine for this offense is $5,000. According to the NAIC (National Association of Insurance Commissioners), the exact amount varies by state, but generally starts between $5,000 and $10,000. There is also a 25% surcharge added to the actual rate. Driving without insurance does not make any sense as you can easily get cheap car insurance from many companies.
prison time
Jail time is usually only for repeat offenses. The uninsured driver will be jailed for a maximum of 30 days depending on the situation. To make matters worse, he still has to appear in court and pay fines based on the crimes he committed. Therefore, he will be sanctioned with both sanctions. According to a study conducted by the IRC (Insurance Research Council) in 2011, one in seven drivers in the United States is uninsured.
The main reason is that insurance policies are expensive, which is not a good excuse after all. If you do a little research online, you will find numerous websites that provide you with free car insurance estimation services. Websites often go to some of the most reputable insurers in the state and make the estimate based on the personal information you provide, such as age, car model, address, mileage, etc.
Such an estimate won’t be 100% accurate, but you can at least predict the actual amount you have to pay. If you’re not going to use an independent estimator, you can request auto insurance quotes from almost any company in the state. Those companies today offer the quotes for free and you can get them without buying their policies.
What if the other driver doesn’t have car insurance?
Don’t Pay Don’t Play
This is a relatively new sanction, and is currently only implemented in 8 US states, including Oregon, North Dakota, Alaska, Iowa, California, Michigan, Louisiana, and New Jersey. Basically, the law states that uninsured drivers cannot receive compensation from insured drivers, regardless of who is at fault in the event of accidents. In Montana, for example, uninsured drivers can sue their insured counterparts for compensation for non-economic damages.
Under the ‘no pay, no play’ law, uninsured drivers are prohibited from doing so because they are basically not providing the same benefits to others. In the simplest way, uninsured drivers are considered to be cheating the insured. Those who do not have insurance will not be able to collect compensation for non-economic damages from other drivers who do have insurance policies.
This can be a good idea, as there are cheap car insurance quotes all over the market, and some people just don’t want to buy it, even if it’s illegal. The only way uninsured drivers can file a lawsuit is when they pay a large deductible (usually around $10,000). Only after that can they sue for property damage.
