Almost every state in the Union has enacted laws that require drivers to have a minimum level of liability coverage. New Hampshire is now the only state that does not mandate insurance coverage, though they do require drivers to be able to prove they can meet their financial obligations if they cause an accident.
Getting involved in an accident without insurance coverage can be problematic. Knowing the ramifications is essential for ensuring drivers seek the coverage they need.
What Is Liability Insurance?
Liability insurance provides coverage for claims resulting in bodily or property damage. Most states require a certain amount of liability insurance coverage, and having the bare minimum will prevent drivers from losing their ability to operate a motor vehicle. Drivers in need of coverage can head over at T.S. Peck to learn more.
What Happens If You Crash Without Insurance?
Depending on the state, there can be serious repercussions if a driver is found to be without liability coverage. The following offers some insight into the penalties of driving without car insurance.
- One of the biggest penalties a person will face is being forced to pay all the damages out of their own pocket. Without any form of liability insurance, drivers who cause an accident are held entirely responsible for the monetary damages they caused and they can be sued in court. Even if you purchase car insurance right after the accident, it would not cover the damages that were caused.
- States can impose fines on drivers who do not have car insurance coverage. These fines may be charged outside of an accident if a driver is pulled over by the police and an insurance check shows no coverage.
- In some states, uninsured drivers can lose their driving privileges and be forced to turn in their driver’s license. The suspension period will vary by state with some requiring a full year of suspension with proof of insurance required before reinstatement.
- Drivers without insurance may also find it difficult to purchase car insurance policies in the future. Insurance companies refer to a driver’s record before deciding on a coverage. Lapses in coverage and the resulting citations can make a person pay more for coverage.
What to Consider When Shopping for Insurance Coverage
Purchasing a minimal amount of car insurance is essential for keeping your driving privileges intact. Liability insurance will cover the damages you cause when at-fault for an accident, but it will not cover any damages to your own vehicle.
If you have a newer car, it may be wise to consider purchasing collision coverage so your own vehicle damages will be covered when you are at fault for an accident. To ensure you are purchasing the right policy to meet your needs, it is wise to work with a knowledgeable insurance agent who can guide you through the purchase process.
Getting caught without liability insurance can be stressful. To avoid the above penalties, it is essential you are covered with at least a minimal amount of coverage. The risks are simply too great not to purchase coverage. With rates being more affordable than ever before, there is no reason drivers should go without coverage in any state. Before making an insurance policy purchase, be sure to carefully shop around to find the best coverage levels at the fairest prices.