Penalties for No Car Insurance

No Coverage

Many insurance companies will not cover you unless you have had insurance for at least 6 months. If you do find an insurance company to cover you, the insurance rates will be much higher than if you had previous continued coverage.

Fines

In almost all cases of driving without insurance, the driver of the uninsured vehicle will have a fine imposed. In some states, such as Indiana, it is considered a Class A infraction and the driver can be fined up to $10,000. Fines and the level of the crime will vary by state.

Suspended License

If you are involved in a traffic accident and fail to prove you have insurance, your driving license may be taken away and you will lose the ability to legally drive. In some states, the license will be suspended until you have paid out of your own pocket for all the expenses that were incurred during the accident. Also, if your license is suspended, you will have to pay a reinstatement fee that can cost hundreds of dollars.

Impounded Car

If you are discovered to be driving without car insurance, law enforcement could impound your car. You will then have to pay to have the car taken out of impound, which can cost thousands of dollars. You may also have to prove that you have insurance before you can secure the car.

Jail Time

In addition to the fines that most states place on an uninsured driver, some will also require the driver to serve jail time. The amount of time served will vary per sentence, but in some cases it can be as long as a year or more. The length of the sentence may depend on recurring offenses.

Considerations

If you are involved in an accident and you do not have auto insurance coverage, it can easily cost you more in fines and penalties than it would have if you had paid insurance costs for a year or more. No one ever plans on being in an accident, and even the safest drivers can be at risk. Check your local Department of Motor Vehicles for laws that pertain to your state.