Consequences of Not Having Car Insurance in Your State

Times are tight. To save money, you're considering driving without auto insurance. Be careful, though. Driving your car without the proper insurance can result in serious consequences.

It is now illegal in all 50 states for motorists to drive without auto insurance. The penalties for doing this, though, vary widely by state. In all 50, though, there are penalties. And, in most cases, they are harsh.

There's a reason for this law. Auto accidents are expensive. If you get into an accident and don't have insurance coverage, who will pay for the damage that you've caused? By not having auto insurance, you've put another driver in a financial hole.

What penalties might you face if you're caught driving without car insurance? First, you might have your driver's license suspended for several months. Consider what an inconvenience that could be. How would you get to work every day? How would you visit friends or family members?

In some states, you'll also lose your auto registration if you're caught driving without insurance. In all states, you'll face a hefty fee for driving without insurance. And, in most cases, the odds are good that you'll receive a separate ticket for driving without insurance. This ticket will come in addition to whatever other ticket the police give you, everything from speeding to reckless driving. As you can imagine, having an additional tacked on to your record can prove quite costly. Finally, your car may be towed. Retrieving your car from the impound lot will undoubtedly result in some heavy fines.

Do the smart thing and pay for the proper amount of auto insurance coverage. Yes, auto insurance isn't cheap, especially if you have speeding tickets or other dings on your driving record. But, the financial burden of paying for car insurance every month is nowhere near as severe as the penalties you'll face if the police should catch you driving without it.