The Real Costs of Not Purchasing an Auto Insurance

Having valid auto insurance is a legal necessity across all 50 states and driving without proof results in stiff penalties that are varying by state. Potential consequences include license suspension, expensive tickets, coverage denial even when you’re not at fault, and lack of financial protection. While first time penalties may result in significant fines, repeated offenses cause the severity of punishments to escalate.

In this blog, we’ll take a look at the real costs of driving without an auto insurance policy.

Financial Consequences

The legal fines of driving without auto insurance vary by state and can range anywhere from $50 to $5,000 on the first offense. However, getting into an accident without insurance can cost much, much higher that than and is even known to drive people into bankruptcy.

If the other person involved in the accident doesn’t have collision insurance, personal injury protection or uninsured motorist insurance, you could be facing anywhere up to hundreds of thousands of dollars in hospital bills and repairs. All of this doesn’t take into account the future possibility of the other person suing you and going after your savings or future earnings.

License Suspension

When caught driving without auto insurance, your license may get suspended in addition to receiving a ticket. The duration of your suspension can vary. In certain states, it finishes once you file an SR-22 or show proof of your insurance policy. The manner of suspension also varies according to the state.

Some will only suspend your license after you commit a traffic violation whereas others will revoke the license if you’re involved in an accident without financial responsibility. Reinstating the license can cost hundreds of dollars which practically costs the same as a year-long car insurance policy.

Prison Sentence

Driving without insurance is classified as a misdemeanor offense in most states that could potentially lead to jail time. However, it’s highly unlikely that a prison sentence will be handed out in the first offense unless you’re involved in a major accident. Repeated offenses, on the other hand, will result in stricter fines and will definitely include jail time.

Vehicle Impound

Getting involved in an accident without auto insurance might cause your vehicle to get impounded by the authorities and your registration and license to get revoked. In most states, it won’t be possible for you to drive again until you submit proof of your auto insurance policy.

You can avoid all of these consequences and more by purchasing an auto insurance policy today. Manatee Insurance provides cheap car insurance in Bradenton, Florida for drivers seeking to gain financial protection. Contact us today for more information.


Join the Discussion