Driving without insurance: Penalties, fines, and consequences

Is it illegal to drive without insurance?

Driving without insurance is illegal in almost every state. If you are pulled over or in an accident, you will face tickets, fines and other penalties. You must have a car insurance policy with specific liability minimums in nearly every state.

The only exception is New Hampshire, where state law allows you to drive without insurance. However, you are still financially responsible for any damage or injuries you cause. To meet the financial responsibility requirement, most drivers in New Hampshire choose to purchase car insurance.

What happens if you drive without insurance

Driving without insurance can have significant consequences. There's only one state where you are not required to have car insurance, New Hampshire, but you are still required to be financially responsible if you cause an accident.

If you are caught driving without insurance, you will face immediate consequences that can include suspension of your license. You'll also have to pay fines and pay higher insurance rates when you take out a policy, and in many states have to file an SR-22, a form that confirms you have the required insurance, for three years.

Furthermore, if you're involved in an at-fault accident without insurance, you will be personally responsible for all damages and injuries.

“It is a civil motor vehicle infraction and can result in a hefty fine, revocation of your license and possible jail time. In addition, the police can impound your vehicle,” says Peter J. Lombardo, owner and president of PJ Lombardo Insurance Agency in Holden, Massachusetts.

Penalties for driving without insurance by state

Some states give you 30 days to produce proof of insurance before these penalties kick in. However, insurance can’t be backdated; you will have to prove that you had insurance at the time of the traffic stop or accident. Buying it afterward won’t get you off the hook.

Many states also impound your vehicle which is an added hassle, both physically and financially.

This chart shows the penalties for first-time offenses. Jail time may apply in many states for second or third offenses, but please note that in some states, even a first-time offense may result in jail time.

*Penalty details obtained from individual state government websites, current as of April 2023

What happens if you get pulled over without insurance

If you are pulled over and are not able to provide the officer with proof of insurance, you will face immediate consequences. Note that many states have electronic records of the insurance attached to each car, so the officer may be able to check on your insurance coverage. While the steps vary by state, this is a basic outline of what you can expect to face if you are pulled over without insurance.

• You will be issued a citation. The officer will write a ticket outlining the violation, the fine, and your next steps.
• You will not be allowed to drive away in your car. Since you are driving illegally, you will not be allowed to continue driving as you would after a speeding ticket. You will have to arrange for a ride home and to have your car towed, or, it may be impounded.
• You will have to pay a fine and follow any additional steps. You will have to obtain insurance to get your license back and pay impound fees if your car was impounded. In addition, you may have to file an SR-22 to prove you have insurance.

What if you're in an accident and you don't have insurance?

If you’re driving without insurance and you get into a car accident, you will be responsible for any damage for which you are at fault. You'll also face all of the penalties associated with driving without insurance: fines, license suspension and increased insurance rates.

Regardless of insurance status, there are some important steps to take immediately following the accident:

1. Ensure everyone is safe. The first step at any accident scene is to check for injuries, ensure everyone is safe, and move the cars out of the way if possible.
2. Exchange information, even if you don't have insurance. It's important to exchange information with the other driver, whether or not you have insurance. If you are at fault, you will be responsible for paying damages out of pocket. If you leave the scene without exchanging any information you could be charged with a hit and run.
3. Take photos and get witness contact information. Take pictures of the scene and the damage, and get contact information for anyone that witnessed the accident.
4. File a police report if necessary. If there is serious damage or there are injuries, you should file a police report. State laws determine whether or not a police report is required based on the cost of the damage done.

Even if your insurance has just recently lapsed, you will not be covered for the accident.

“If you’re in an accident and your insurance has lapsed, the insurance company has the right to deny the claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. and you will be forced to pay both bodily injury and property damages out of pocket,” Lombardo says. 

That means if the damage to another person is $10,000, $20,000, or even $100,000, you are responsible for paying it. If you don’t have the cash, your assets are next on the list to be seized to pay the debt. This is true in any state. Your car, house – anything you own – is on the line to pay your debt.

You will likely have to retain legal services if you owe large amounts of money that you can’t pay. 

What happens if you have no insurance, but the other driver was at fault

If you are involved in an accident while uninsured and the other driver is at fault, things could get complicated. While the other driver is responsible for damage to your vehicle and any injuries, you have still broken the law by driving uninsured. Here's what you should know.

• You can file a claim against the other driver's insurance for damage to your vehicle and any injuries that were caused.
• You will be cited for driving uninsured and face your state's penalties, which can include license suspension, fines, and the requirement for an SR-22 filing to prove you have insurance before your license is reinstated.
• You may not be able to recover any non-economic damage, such as pain and suffering, if you live in a state with a "no pay, no play" law. In these states, uninsured drivers can not sue or collect any damages beyond direct economic loss from an at-fault driver. The states with no pay, no play laws are:
  • Alaska
  • California
  • Indiana
  • Iowa
  • Kansas
  • Louisiana
  • Michigan
  • Missouri
  • New Jersey
  • North Dakota
  • Oregon 

Why is driving without insurance illegal?

Driving without insurance is illegal because most people aren't financially capable of paying for damages out of pocket if they cause an accident. Car insurance laws exist to protect everyone on the road and ensure that anyone at fault in an accident has a method of paying for the damage.

Car insurance laws are based on the concept of financial responsibility; if you are at fault, you have to pay to make it right. Even in New Hampshire, where car insurance isn't required by law, financial responsibility laws still exist. Most states make car insurance a legal requirement to avoid the financial fallout and lawsuits that result when people can't cover their financial responsibilities.

Does being caught driving uninsured cause your rates to go up?

If you’re caught driving without insurance, you may face higher rates because you are now considered a risky driver.

“In addition to the surchargeAn increase in your auto insurance premium due to an at-fault accident or a moving violation. Learn more about how a surcharge affects your auto insurance premiums. you will likely receive, most companies also ask if your current or prior insurance has lapsed. If it has lapsed, it will be both more expensive and more difficult to find insurance companies willing to insure you,” Lombardo says. The same is true if you never had insurance in the first place.

The more times you are caught, the worse things get. In addition to higher insurance rates, tickets, fines and penalties get harsher. 

The fine in Massachusetts for a second offense is pretty steep. 

“A second offense can result in a maximum fine as high as $5,000, in addition to possible loss of license, possible jail time,” Lombardo says.

Many states will require you to file an SR-22 if you have been caught once without insurance. This form proves that you now meet the state’s financial responsibility requirements.

Remember, having a vehicle registered in your name means you must carry insurance for that vehicle. If you don’t have your own car, you can look into non-owner car insurance. This will cover a certain amount of liability if you get into an accident in someone else’s vehicle. It doesn’t cover damage to the vehicle, it covers injury to another person or damage to their property. It might be a good idea if you borrow someone else’s car or rent cars frequently.

You may think skipping car insurance is a good way to keep your monthly costs down, especially if money is tight. It’s a huge risk to take and almost always backfires; you will end up paying out of pocket for damages and fines.

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