Every state varies in the requirements they have for drivers. However, one thing that isn’t different is that there are penalties that come when you are driving without insurance. These penalties can have steep and pricey repercussions.
The penalties for driving without insurance can vary from state to state. However, there are some that are more common than others including:
- Having your license suspended. In Indiana, your license can be suspended anywhere from 90 days to one year if you drive without insurance.
- Having your vehicle registration suspended
- Receiving a traffic ticket for a no insurance violation. This ticket would be additional to the one you would receive for the original reason you were pulled over
- Hefty fines. In addition to the tickets you can receive, there will also be the costs of having to reinstate your license and registration, which can cost anywhere from $250-$1000.
- Increased future insurance premiums. When car insurance companies determine your premiums, one of the biggest factors they look at is your history of traffic tickets. This means if you get a ticket for driving without insurance, you are more likely to pay more for insurance in the future.
While legal penalties are very serious when driving without insurance, you can face even larger risks when you have been in an accident without having insurance. You obviously face the cost of dealing with the damages or injuries that you could possibly bring to yourself, but there are also additional costs.
If you were to cause injuries to other people or damages to property, you can be held reliable for those costs as well. The other driver can sue you for those damages. If you don’t have the money to cover these costs, which is highly likely, then your assets can be taken from you. These assets might include your car or even your home.
Tips for Keeping Your Car Insurance Policy Current
You can avoid the headache and financial burden of being caught without auto insurance if you make sure you aren’t letting your policy lapse. The most obvious thing to do is to pay your premium on time.
You can ensure you are making a prompt payment by paying your premium annually. This means that you don’t have to worry about making monthly payments and can get it out of the way for an entire year. If you don’t have the funds to do this, you can also utilize automatic payment options. This eliminates the possibility of you forgetting to make payments in a timely manner.
No matter what you decide to do, you should always understand what the policy is for your insurance provider on late fees. Some providers offer a grace period, and others stop your coverage instantly after a payment becomes late.
The risk of driving without insurance is far greater than the cost of buying it. Consider the out of pocket costs you will have to face if something were to happen while you were driving uninsured.