key-791390_640Accidents happen. This is a fact of life. However, what happens when you get into an accident and affect someone else as a result? Car accidents occur when we least expect them, each with their own potential impact on the people and cars involved in them. While these risks persist daily, people still elect to evade the law and go without auto insurance.

Here are some of the potential ramifications of going without even the most basic insurance – auto insurance liability coverage.
You will be Sued

 If you get in a crash that’s your fault and don’t have liability insurance, the person you hit will demand payment for any damages caused. Without insurance, you’ll have to pay for costs out of your own pocket to avoid being sued. If you don’t have enough money then you might lose other assets, such as your home, car, or even personal items in order to pay for the damages you caused. You never know what could happen while on the road. One wrong move could cost you a lot more than a year of premium payments.

Your License and Registration Could be Suspended
Aside from New Hampshire, each state requires its drivers to possess some type of car insurance policy. This is due to the potential for accidents to occur on the road, and how some method to compensate for damages needs to be put in place. Otherwise, people would utilize the court system exclusively in an attempt to gain money from damages, resulting in a higher volume of cases that could have been resolved easier if both parties had insurance. So when a police officer pulls someone over, there’s a chance they’ll ask for insurance registration information along with a license and vehicle registration. If you have a valid license but do not have an updated insurance policy in place, your license could be suspended for several weeks or even months until you get an insurance policy. In some cases, your vehicle registration could be suspended as well.
Increased Insurance Premiums
What some people fail to realize is that the police and insurance companies actually share databases with one another. One of the benefits of this collaboration is that it allows insurances companies to determine whether a person has a history of DUI infractions or other negligent behavior. Driving without an insurance policy – despite the fact that it’s not actually detrimental to a person’s capability to drive – is still considered as a form of negligence, and has a corresponding impact on an individual’s insurance premiums.


Insurances companies are for-profit organizations, and they calculate their premium costs based on a risk-reward system. Customers more likely to be part of an accident or have damage caused to, or by their vehicle will generate a higher premium. If you’ve gone a stretch being uninsured and you apply for an insurance quote, the company will ask if you’re currently insured. You could get a higher quote because your past behavior is viewed as negligent.

The Undeniable Fact
One out of every seven drivers in the US drive without insurance. There will always be debates as to the ethics of such practices. Some people simply don’t have the cash flow to make monthly premium payments while others are comfortable taking the risk to save a bit of money. But no matter how you feel about the affordability of auto insurance, it’s undeniable that getting sued and brought to small claims court isn’t any cheaper.

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