Almost every state requires you to have at least some insurance on your car if you have one or are driving one, yet a surprising one-in-eight motorists are driving uninsured and the numbers are growing.
It does take a bite out of a budget: An average of $1,099 annually, in fact. But if you look at the risks and costs of not having auto insurance, you might start to see that as a bargain. Because if you have left home driving a car without it and are involved in an accident – your fault or not – you’re going to pay the price.
The extent of your risk will depend on whether the accident occurred in a “fault” (tort liability) or a no-fault state. Additional criminal and administrative penalties may also be applied. Here’s what you need to know:
Variations like “No Pay, No Play” rules complicate state “fault” insurance systems
If you’re a motorist who’s responsible for an auto accident resulting in an injury, the injured person can sue you for all the damages suffered, from medical bills to property damage and more. If you’re up-to-date on your insurance, these costs are covered. Uninsured? You’ll pay damages out of your own pocket, and if a judgment is obtained against you in court, the plaintiffs will do what they can to get it satisfied, including garnishing your wages.
If you were the injured driver – but uninsured – you may have some recourse, but it varies in tort states. In comparative fault states like Indiana, for example, you can file a claim with the other driver’s insurance company as long as you don’t bear more than 50% of the fault for the accident. But Indiana is also among the states that have “No Pay, No Play” rules. These limit the type of compensation you can receive for your injuries if you’re an uninsured driver who’s involved and not at fault in an accident.
No-fault system – the good and bad of limited lawsuits
In states with no-fault laws, it doesn’t matter if you caused the accident or the other guy did since you and your insurance are responsible for paying for your own injuries and damages. Injuries must go above a certain of threshold of damage for the insured driver-at-blame to owe. If you’re an uninsured driver not at-fault in a no-fault state, you may be able to get damages from the other driver, but the state is likely to limit them.
Driving uninsured risks hefty fines and even jail time
If the costs of personal injuries and property damage in the event of an accident weren’t persuasive enough, there’s even more to think about. Most states give out substantial fines to uninsured vehicles, with tickets costing from $25 to $5,000. Over a dozen states will charge you with a misdemeanor for going without. New York is one state that may even escort you to jail.
And then there’s the likely suspension of your driver’s license, its reflection on your driving record and the effect on your future auto policy premiums. All-in-all, it’s important to make sure you have adequate car insurance.
We understand that you want the best monthly car insurance rate, which is why we have made it easy to compare auto insurance quotes online.
