Not every car owner or driver has their vehicle insured. However, driving a vehicle without car insurance is illegal in all states and the driver must provide “financial responsibility” in the case of an accident or damage to their car or another person.

It can be pretty dangerous if you don’t have car insurance, for both you and anyone involved if there’s an accident.

So, how does someone get car insurance? Can they depend on it to cover them for everything? Is it better to just pay fines or hope not to get caught? The short answer: no.

You will need to have car insurance, but if you aren’t sure where to get it, don’t worry, we’ve got the breakdown of what car insurance covers and what the consequence could be if you don’t have it.

Car Insurance

Auto insurance is available to every car owner, even if there are different types, costs, and coverages. The purpose of car insurance is to provide coverage for financial expenses in the case of an accident that causes damage to the driver’s car, or any other car or person involved.

How does it work?

Once a car owner picks out a car insurance policy, they will begin to pay premiums. You promise to pay a premium and your car insurance provider promises to pay the financial fees associated with damage done to the vehicle (or others).

A car insurance policy covers certain things; in all states, there is a minimum coverage that is required and then there are the additional coverage policies that are optional (but recommended).

Car insurance typically provides coverage for:

  • Bodily injury liability. This type of policy is required in all states, due to its importance and prevention of the driver having lawsuits filed against them. It provides coverage of fees and expenses when you cause injuries to someone else.
  • Personal injury protection. This policy provides coverage for you, covering the fees of treatment of injuries sustained due to vehicle accidents.
  • Property liability. As another type of required policy, this one is equally important and provides coverage for when you damage someone else’s property.
  • Collision. It covers damage due to a collision, typically with potholes, animals, other vehicles, trees, poles, etc.
  • Comprehensive. Unlike collision insurance, this policy covers anything that isn’t due to a collision. Your car would be covered for damage due to fires, floods and other disasters, theft, vandalism, and falling objects.
  • Uninsured motorists. This policy provides coverage if you are hit or collide with someone else who is uninsured.

All of these policies are separate and sold on their own, so the prices will vary on each one. Both bodily and property liability are required and are usually a part of one type of liability or minimum coverage policy.

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What Are the Consequences of Having No Car Insurance?

Getting caught driving without any insurance on your car is illegal and can cause you some serious trouble and stress. In a study done by the Insurance Research Council, one in eight drivers was found to have no insurance on their vehicles.

Some of the consequences of having no insurance are financial, while some are physical, including time in jail if the offense is serious enough.

Accidents

Driving without insurance can be even worse if you are in an accident and could set you up for financial hardship since you don’t have any coverage for damage caused.

If you wreck, you will be responsible for paying for the damage to your car, and possibly anyone else’s, if you are at fault. It varies by state, but in some like Alaska, your license can be revoked, and you can spend time in jail if you are the cause of an accident and have no insurance.

Not to mention, the other people involved can file a lawsuit. That’s no fun for anyone!

The Financial Costs

Driving without a license can land you in some pretty deep financial trouble and you may have a hard time getting out depending on how severe fines, penalties, and increased rates are.

The costs to your bank account will be due to expensive fines, penalties, suspended driver’s license and reinstatement fees, an increase in insurance rates, and possibly jail time (bail bonds).

Also, insurance rates can skyrocket due to repeated offenses of driving without insurance. Typically, many factors such as your age, marital status, gender, and accident history determine what your insurance rates will be. This is important to understand when you are shopping for car insurance.

However, if you get fined for driving without insurance, you’ll be considered a high-risk driver, which will make the insurance company require higher pay rates.

Fines and Penalties

Specifically, driving without insurance for your car can cause you to face some heavy fines and penalties.

  • Fines. The cost of fines can range from $100 to $5,000 depending on what state you live in. Mostly, on your first offense of driving without insurance, you may only face a fine.
  • Penalties. Penalties such as jail time, license suspension, impounded car, or license plate confiscation occur in almost every state but depend on how severe the offense is and if it is your first or fifth.

There are consequences to driving without insurance, including expensive fines and penalties. If you lose your license and you get caught driving again, that can equal some time in jail. These are serious penalties, so being insured is probably the best route to avoid this.

Jailtime

This consequence is a scary one and it may be a bit extreme, but is it a very real consequence to driving without insurance.

The amount of time an offender would spend varies by state. Most state departments won’t make a driver go to jail on their first offense.

For example:

  • In Alaska – up to 90 days for an offense
  • In Georgia – up to 1 year in jail
  • Kansas & Nebraska – up to 6 months in jail
  • Montana – 10 days in jail

As you can see, the amount of time is vastly different from state to state. Just because your state may not stick you in a cell for years doesn’t mean they will not put you there at all. It is always better to be insured so that everyone is covered and so that you don’t end up behind bars.

How Do You Get Car Insurance?

Shopping for car insurance can be overwhelming, but now that you understand the importance of it, you’ll need to determine your and your car’s needs.

You can look online for insurance since many auto insurance companies offer online quotes.

So, when you are deciding which policy to buy, keep this in mind:

  • Look at the amount of coverage that each policy offers
  • Look at all policies, including those for glass coverage, collision, comprehensive, and personal injury protection
  • Compare deductibles and costs of premiums (higher premiums equal lower deductibles)

Overall, your best bet is to look at your car’s value and determine whether it will be more expensive to repair (if so, let your insurance fix it).

The Bottom Line

Driving without insurance is not a good idea, as it can land you in deep trouble financially and with the law.

Other consequences include the fact that you’ll have to pay lofty fines, higher insurance rates, and penalties. If anyone is injured at your fault, then lawsuits may make their way into the picture.

If you are not wanting to experience jail time and heavy fines, then finding car insurance is the way to go.

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