Auto insurance may be a hard pill to swallow, especially in tough economic times. However, the risks and consequences of driving without even low cost auto insurance far outweigh the savings.  Before you decide that you will drive without auto insurance, give some thought to what may happen should you be involved in even a minor accident.

Legal and Personal Consequences

There are some pretty significant legal and personal consequences involved for those driving without auto insurance and who are involved in an accident. In the United States, all states have laws requiring drivers to carry some sort of liability insurance or legal financial responsibility for driving their vehicles on the road.

Even if you are not involved in an accident you may face problems with the DMV.  Most states now have electronic reporting between insurance companies and the state vehicle registration offices.  The auto insurance companies must report the insurance status of vehicles they know about using the vehicle’s VIN number.  If you don’t have insurance, chances are the officer who pulls you over will find out about it.  If you are caught driving without insurance you could face several consequences from the DMV such as:

  • Fines
  • Loss of registration
  • Loss of license

In the eyes of law enforcement, driving without auto insurance is a very serious crime.

The Risk of Losing It All

If you cause an accident and do not have your own insurance, you will be required to pay for any damages to the other person or to the other party’s vehicle or property. You may even be responsible for their legal fees, lost wages, medical expenses and any other hardship caused by the accident.  If you are uninsured you will then run the risk of being sued by the injured party.  Anything you own may be at risk for liquidation in order to live up to your responsibility including your car, your home and your savings.  There is then a serious potential for bankruptcy.

If you are in an accident caused by someone else, and you do not carry your own auto insurance, in some states you may waive your rights to receive compensation from the at-fault driver. If you are injured, you will be on your own to fix your own property, pay your own medical bills and make up any lost wages you may experience.

Don’t put yourself and your family at undue risk.  If auto insurance is a hardship for you, locate the cheapest car insurance policy you can find. Don’t drive without it. It’s not worth it!