Car insurance is mandatory in all but two states. And all states will require some form of financial responsibility if you want to drive on their roads. Unless you can quickly prove otherwise, a lack of proof of insurance is likely to be viewed as the driver not having car insurance at all. And that can mean trouble.
You could even end up getting your car impounded late at night and have to find your way home. That’s why it’s always important to know the documents you’ll need when you see those tell-tale strobe lights in your rear-view mirror.
Driving Without Insurance
The laws can vary across the country, but the law enforcement officer who stops you will likely ask for up to three documents.
You will certainly need to provide your driver’s license, proof of insurance and quite possibly also your car registration to prove your ownership of the vehicle. Since they’re so important, you should keep all three of these documents either in your car or on your person at all times. That’s the best way to avoid hassles with the authorities.
What Are the Civil Penalties of Not Having Insurance When Stopped?
In U.S. states where such proof is required, the penalties can be stiff for not having it — even for a first offense. From there, they can get even more severe the next few times you’re stopped and still don’t provide your car insurance proof.
Before getting into the details, you should first know that there are two different categories of penalties for driving without proof of insurance:
- You actually have car insurance but just don’t have your insurance card on you or in your car when stopped.
- You have no proof of insurance because you don’t have car insurance.
Of these two categories of offenses, it probably won’t surprise you to know that the more serious one is not having car insurance. The law enforcement officer might give you a specified deadline for submitting your proof of insurance if you do have coverage but just don’t have the insurance card to prove it.
If, however, you don’t have car insurance, the penalties, depending on the state, can include a heavy fine — possibly one that escalates with subsequent offenses. You might also have your vehicle impounded, especially if you were involved in an accident. You could see your driver’s license or car registration revoked.
How Do the Police Verify Your Insurance Status?
The police can verify your insurance in several ways. First, they can access the DMV database which contains information about the vehicles registered in the state and the insurance policies associated with them. They can also ask you to provide proof of insurance, such as an insurance card, an e-card on your smart phone or an insurance policy document, which you are required to carry in your vehicle. Additionally, some police officers are equipped with handheld devices that can check insurance information instantly by scanning the vehicle’s license plate number. If there is any doubt about the validity of the insurance policy, the police may contact the insurance company directly for verification. Ultimately, the police are responsible for ensuring that all drivers on the road have valid insurance coverage as per state law.
Is There a Legal Alternative to Having Car Insurance?
Yes. In all but two U.S. states, car insurance is required. All states require proof of financial responsibility. This usually takes the form of car insurance, but in some states, you can prove you have assets on hand to pay for damages to each state’s maximum amounts and use this documentation in the place of insurance.
The idea is that it’s in the best interest of the state and all its residents and drivers that everyone behind the wheel of a car can show the ability to pay for accidents and all related expenses that are the driver’s responsibility.
These states don’t care if that ability comes in the form of car insurance or via the proven financial stability of the individual. But those drivers who can’t put hefty sums on deposit with the DMV (and that’s most of us) often find that they can afford low-cost car insurance alternatives that they didn’t even know about. These legally acceptable policies will keep you out of trouble with law enforcement and protect your finances if a collision does occur.
What Happens if You Get in an Car Accident Without Insurance
If you get in an accident without insurance, the consequences can be severe and long-lasting. First, if you are at fault for the accident and you are the uninsured driver, you will be held responsible for the costs of any damage or injury caused to the other party. This can include medical bills, repair costs for their vehicle, and other expenses. Additionally, you may face legal consequences, such as fines or even jail time, if the accident results in serious injury or death. On top of this, you will likely have to pay for the damage to your own vehicle out of pocket, which can be a significant financial burden.
Furthermore, without insurance, you may have trouble finding a new policy in the future, as many insurance companies will not cover drivers who have a history of accidents without insurance. To avoid these consequences, it is important to have insurance coverage in place before getting behind the wheel.
How to Find The Best Auto Insurance
Here are some tips that you need to know before looking for an insurance company around you:
- Compare multiple quotes: Get quotes from multiple insurance providers to compare coverage options, discounts, and pricing.
- Determine your coverage needs: Decide what types of coverage you need and what your budget is before shopping for insurance.
- Check for discounts: Ask about discounts for things like safe driving, multiple vehicles, good grades, and more.
- Consider the financial stability of the insurance company: Look for an insurance company with a good reputation and financial stability to ensure they will be able to pay out claims.
- Read customer reviews: Read customer reviews to see what other people have experienced with a particular insurance company.
- Ask about accident forgiveness: Some insurance companies offer accident forgiveness, which can help keep your rates from increasing after an accident.
- Consider a higher deductible: Choosing a higher deductible can lower your monthly premium, but make sure you can afford to pay the deductible if you need to make a claim.
- Look for bundling options: Some insurance companies offer discounts for bundling multiple policies, such as auto and home insurance.
- Take advantage of safety features: Installing safety features like anti-theft devices and airbags can lower your rates.
- Review your policy regularly: Review your policy regularly to make sure your coverage meets your changing needs, and to see if there are any opportunities to save money.
Can I Get Affordable Options?
The good news is that there are affordable options for drivers who feel that they might be priced out of coverage and forced to drive the streets illegally. In many states, liability insurance satisfies minimum coverage requirements.
This form of coverage pays for claims of other drivers and their passengers if a collision is ruled to be your fault in an at-fault state. In a no-fault state, this coverage pays for your injuries and damages, no matter who is at fault. Liability coverage covers bodily injuries, as well as property damages. This is likely to include damage to vehicles and anything else damaged in the collision, such as fences, buildings, signs, and other structures.
This is the most affordable form of coverage because of its limitations. For starters, in most at-fault states, liability insurance does not pay for damage to your vehicle or your injuries. So with liability insurance, you’ll still be responsible for the repair or replacement of your own vehicle and your own medical bills. However, liability might still be the best choice when budgets are tight and drivers can’t afford full coverage.
Freeway Insurance Will Help You Get the Coverage That’s Best for You
Freeway Insurance is a great option for first time car insurance buyers as it offers a range of coverage options at affordable prices. They have knowledgeable and friendly agents who can help you understand the different coverage options and choose the right policy for your specific needs. They offer liability coverage, collision coverage, comprehensive coverage, and more, so you can choose the level of protection that best suits your needs. In addition, they offer discounts for good drivers, multiple cars, and more, so you can save money on your car insurance. With their 24/7 customer support and convenient online services, Freeway Insurance makes it easy to get the coverage you need at a price you can afford.
If you’re lacking proof of insurance because you think you can’t afford car insurance, contact Freeway Insurance. Your independent insurance agent can help you find an affordable policy regardless of your budget. Call us at 800-777-5620. You can also meet with an agent at a Freeway Insurance office near you or get a quick online quote.