Consequences of driving without car insurance

Consequences of driving without car insurance

Drivers are required to purchase a proper car insurance policy to drive in the state. If you are caught by the police while driving without car insurance then you could face penalties. Penalties are different in several states of the USA. Following are the consequences of driving without car insurance:

Driving without car insurance is illegal

If you are found driving without a car insurance policy then it is against the law in most of the states of the USA. But few states of the USA give chance to the drivers to be self-insured. Drivers must deposit cash or sign a post bond with the state’s treasury to be self-insured. The amount paid to be self-insured is equal to the state’s liability limits. 

If you failed to show the proof of insurance to police it means you are violating the law because of driving without car insurance. Police could charge penalties, suspend your license, or you have been ticketed for driving without car insurance.

How much is the fine for driving without car insurance?

Fine for driving without a car insurance policy is different in different states of the USA. Following are the average penalties charged according to the different states for driving without car insurance:

 

States Average penalties
Alabama $500 or more
Alaska $500
Arizona $500-1000
Arkansas $100-300
California $100-250
Colorado $500
Connecticut $100-200
Delaware $1000-3000
Florida $200-500
Georgia $50-200
Hawaii $500-5000
Idaho $100-1000
Illinois $500-1000
Indiana $300-1000
Iowa $300
Kansas $1000-3000
Kentucky $1000
Louisiana $150-800
Maine $50-500
Maryland  $1000-2500
Massachusetts $1000-5000
Michigan $200-600
Minnesota $200-3000
Mississippi $500
Missouri $500
Montana $200-500
Nebraska $50-100
Nevada  $200-1000
New Jersey $250-5000
New Mexico $200-1000
New York $200-1500
North Carolina $100-200
North Dakota $200-5000
Ohio $150-700
Oklahoma $200-300
Oregon $100-1000
Pennsylvania $100-300
Rhode Island $100-1000
South Carolina $100-600
South Dakota $100-550
Tennessee $20-300
Texas $150-4000
Utah $300-1000
Vermont $20-500
Virginia $500
Washington $500-1000
West Virginia $250-5000
Wisconsin $500
Wyoming $200-1500

Can the state suspend your driver’s license for driving without car insurance?

Rules for punishment regarding driving without car insurance are different according to the state. Some states of the USA cancel or suspend the driver’s license of those who caught driving without car insurance but some states charge fine who found driving without having proper car insurance policy according to the state requirements. States that cancel the driver’s license if anyone found driving car insurance policy are Alaska, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, and Wyoming.

Can your vehicle be towed if you found driving without proof of insurance? 

In some states of the USA, if you are caught without car insurance your vehicle can be towed. But it is up to the officer’s discretion whether to tow your vehicle or not. It is illegal to drive without car insurance. Police officers can impose a penalty on you for driving without car insurance. In some states, police have the right to tow your vehicle if you are caught driving without car insurance.

Consequences of driving without car insurance if you had an accident when you are at-fault

You can be sued in the court to recover the losses due to accidents caused by you if you do not have a car insurance policy. You will have to pay the cost of damages from your pocket if you caused an accident. It also affects your driving record. If you want to purchase a car insurance policy after an accident then car insurance companies charge higher premiums from you. You cannot claim to cover the cost of damages if you do not cover under the car insurance policy.

Consequences of driving without car insurance if you had an accident when you are not at fault

Rules for non-fault accidents are different according to different states for uninsured drivers. In some states, you will receive a compensation amount for covering the damages if you are not insured under the car insurance policy. In some states, no compensation is paid to the uninsured drivers no matter who is at fault. You are not able to file a claim if you are not insured under the car insurance policy. So it is beneficial and legally required to purchase car insurance policy according to the state minimum requirements. 

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