As a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Written By Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Jason Metz Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others mak.
Lead Editor, Insurance Amy Danise Managing Editor, InsuranceAmy Danise is the managing editor for the insurance section at Forbes Advisor, which encompasses auto, home, renters, life, pet, travel, health and small business insurance. She is a highly experienced editor, writer and team leader with an extensive.
Amy Danise Managing Editor, InsuranceAmy Danise is the managing editor for the insurance section at Forbes Advisor, which encompasses auto, home, renters, life, pet, travel, health and small business insurance. She is a highly experienced editor, writer and team leader with an extensive.
Amy Danise Managing Editor, InsuranceAmy Danise is the managing editor for the insurance section at Forbes Advisor, which encompasses auto, home, renters, life, pet, travel, health and small business insurance. She is a highly experienced editor, writer and team leader with an extensive.
Amy Danise Managing Editor, InsuranceAmy Danise is the managing editor for the insurance section at Forbes Advisor, which encompasses auto, home, renters, life, pet, travel, health and small business insurance. She is a highly experienced editor, writer and team leader with an extensive.
| Managing Editor, Insurance
Updated: Sep 11, 2023, 8:46am
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
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Nearly one in eight drivers do not have car insurance, according to a 2021 report from the Insurance Research Council. Joining this not-so-exclusive club is a terrible idea.
Not only will you face legal consequences, such as fines and even jail time, but you’ll also face insurance consequences. And if you cause a car accident that results in property damage or injuries when you’re driving without car insurance, the financial fallout can be devastating.
Every state has some form of “financial responsibility” law, meaning you must have a way to pay if you or someone driving your car causes an accident. One less-than-practical way to satisfy financial responsibility is to fork over a bond with the state that can run upwards of $50,000. But the easiest and most affordable way to satisfy financial responsibility is to buy car insurance.
Every state requires a minimum amount of liability car insurance (even New Hampshire and Virginia under certain conditions). And if you get caught driving without car insurance, chances are you are going to feel some financial pain.
Driving without insurance can land you in legal hot water. Here are some of the consequences you could face:
If you don’t learn your lesson the first time around, the legal consequences can get more severe. Second and subsequent offenses will typically result in stiffer penalties, including steep fines and an increased likelihood of facing jail time.
Driving without car insurance can also hit your wallet hard. Here are a few insurance consequences you might face:
Source: Forbes Advisor analysis of penalties for driving without car insurance.
Drivers with a coverage lapse pay an average of 18% more than drivers with continuous coverage, a Forbes Advisor analysis found.
Here’s a look at car insurance rate differences for those without a coverage gap and those who were caught driving uninsured.
See More See LessSource: Quadrant Information Services, based on a 30-year-old driver with a clean record insuring a Toyota RAV4 with $100,000 in bodily injury liability coverage per person, $300,000 per accident and $100,000 in property damage liability, uninsured motorist coverage and any other coverage required in the state. The rate also includes collision and comprehensive with a $500 deductible. Rates are from October 2021.
If you cause an accident and don’t have car insurance, you may have to pay for the damage out of your pocket. You could also get sued if you don’t pay.
Police will likely charge you with driving without car insurance. You could face a hefty fine, license suspension and even jail time, depending on the state.
Once you buy car insurance, you will probably pay much higher rates for coverage. The at-fault accident and not having coverage are two factors that generally mean higher car insurance costs.
These are all reasons why maintaining car insurance coverage is critical to your finances.
You should be able to find a car insurance policy—even if you haven’t had coverage. You will pay more for coverage and some insurers may decline to cover you, but it’s possible to get car insurance if you’ve been driving without it.
Our analysis of 10 major car insurance companies found that the average cost for a driver charged with driving without car insurance is $1,851 a year. That’s nearly $300 a year more the cost for good drivers who have had continuous insurance.
Geico and USAA are two insurers to check out if you’ve been charged with driving without insurance. Both charge less than $1,400 a year on average for those drivers. USAA auto insurance is available only to those with a military affiliation.
Compare car insurance quotes from multiple companies, ask about discounts and compare quotes for the same level of coverage. By getting quotes from at least three insurance companies you can get a sense of what a good deal is.
Driving without car insurance isn’t a wise decision. Here are some ways to make sure it doesn’t happen to you.
You may lose coverage if you don’t pay your bills by the due date. Some insurance companies have a grace period so check with your insurer if you’re late on payment.
Make the payment promptly to avoid losing your coverage.
It can be wise to switch car insurance companies if you find a better rate, but make sure you go about things the right way.
One possible mistake when changing companies is not taking into account an insurance gap. Make sure your new policy is scheduled to take effect as soon as your old policy ends.
If you’re changing companies, make sure to notify your current insurer. Stopping payments can lead to late fees and having your record show that you stopped paying.
With so many choices for car insurance companies, it can be hard to know where to start to find the right car insurance. We've evaluated insurers to find the best car insurance companies, so you don't have to.
Drivers who are considered high-risk (such as drivers who get caught driving without insurance) are often ordered by a court or the state to get SR-22 insurance. An SR-22 isn’t insurance. It’s a form filed by your insurer with your state that says you have car liability insurance requirements. In some states, the form is called an SR-44 or a “certificate of financial responsibility.” If you already have car insurance, your insurer can file a document with your state. If you need to buy car insurance, you will have to let your insurer know about the SR-22 requirement. Your new insurer will file the SR-22 on your behalf (for a fee). In some states, you will need to file an SR-22 even if you don’t own a car to restore your driving privileges. A non-owners car insurance policy can meet this requirement and so you can get the SR-22.
If you let your car insurance lapse, you don’t have coverage to protect you if you get into an accident, your car gets stolen or your vehicle gets damaged. If you get caught driving without insurance, police could charge you and you could face a fine, license suspension and possible jail time, depending on the state. It’s also a red flag to car insurance companies when you try to buy coverage again. Insurers view drivers who let their car insurance lapse as a bigger risk than other motorists. That means you will likely pay more for auto insurance the next time you buy it.
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Lead Editor, InsuranceAs a former claims handler and fraud investigator, Jason Metz has worked on a multitude of complex and multifaceted claims. The insurance industry can be seemingly opaque, and Jason enjoys breaking down confusing terms and products to help others make well-informed decisions.
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