Essentially, yes, it is illegal for you to drive without car insurance. In all states, you must be financially responsible for all damages and liabilities in a car accident. Most states do explicitly state that all drivers must use car insurance as proof of financial responsibility. Driving without insurance is dangerous and not worth the consequences. This article will go over why driving without insurance is illegal, and what penalties you’ll face for driving without insurance.
In both no-fault and at-fault states, you need proof of financial responsibility, like car insurance, to drive. Many states also use a “no pay, no play” law, meaning that if you car in an accident that isn’t your fault, if you don’t have insurance, you can’t collect as much compensation from the other driver.
Some states, like Michigan, will make you pay for all damages if you don’t have car insurance- even if you didn’t cause the accident!
Why Is It Illegal To Drive Without Insurance
As mentioned, all states require drivers to demonstrate financial responsibility. To break it down simply, whether or not you were the cause of a car accident, you will need to have coverage for yourself, the other driver, and all passengers and pedestrians. This includes financial responsibility for:
- Property damage.
- Medical bills.
- Personal injury.
- Vehicle damages.
An average car insurance claim for property damage alone is around $3,600, and an average bodily injury claim is over $15,300! Most people don’t have that kind of cash lying around. In many cases, even if you did, you likely wouldn’t want to shell out that much money in addition to any fines for driving without insurance.
Some car accidents can change a person’s life forever. A bad car accident can prevent someone from working for the rest of their life. Personal injury settlements against negligent drivers can reach upwards of over a million dollars. This is why it’s illegal for you to drive without insurance.
Can You Drive Without Your Own Insurance?
All states require drivers to have financial responsibility. A few states allow drivers to be self-insured. This requires you to deposit cash or post a surety bond with your state’s treasury. You’ll need to have enough cash in your deposit to cover your state’s minimum requirements for individual liability coverage. To find out what minimum coverage you have in your state, check out our article below.
Also Read: Minimum Car Insurance Requirements By State
What If I’m Driving Someone Else’s Car?
Many people wonder whether car insurance follows the car or the driver. As long as you have permission from the vehicle’s owner to drive, you’ll have coverage for injuries and property damage.
If you have your own car insurance and drive another person’s car, you can also use your own coverage if you get into an accident depending on your own policy. However, if the vehicle you’re borrowing is uninsured, both you and the owner can face penalties- even with your own insurance.
Also Read: Am I Covered On My Friend’s Car Insurance?
Penalties For Driving Without Insurance
Penalties for driving without insurance changes from state to state. Generally, if you do choose to drive without insurance, you’ll face serious consequences, including:
- Fines.
- Jail time.
- License suspension.
- Impound, towing, and lot fees.
- Court and reinstatement fees.
- Traffic tickets and strikes on your driver history.
- Increases to your car insurance.
Drivers who get caught driving uninsured cars must file an SR-22. This is a document you must file with your state that lists you as a high-risk driver. As a high-risk driver, your car insurance will exponentially increase.
Also Read: Why You Should Be A Safe Driver To Save Big On Car Insurance
In America, 44 out of 49 states will suspend your license if you’re caught driving without car insurance. Meaning, in most states, it’s explicitly stated that it’s illegal to drive without insurance. Although the fines and severity caries between states, your license will be suspended in the following states:
- Alaska
- Arizona
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Maine
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Jersey
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- West Virginia
- Wisconsin
- Wyoming