UPDATED: Mar 19, 2020
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Car insurance is not an option, it is a necessity. If you have doubts about whether you need coverage, take a look at these three reasons why being uninsured is going to cause you problems. If the fact that being uninsured could cost you your driving privilege does not convince
you to buy it, perhaps the threat of financial ruin will have a greater impact.
- Insurance is the law.
- You are responsible for injuries and damages.
- You could be penalized, and have to pay more for coverage.
All states require some form of insurance, and may suspend your license or revoke the vehicle tag if you do not have coverage. Since many states require insurance companies to notify them of dropped coverage, it is difficult to get away with having proper insurance, and carries fines along with the possibility of having your driver license or vehicle registration suspended or revoked.
The average driver could be financially devastated by the out of pocket costs without coverage, especially if more than one person was injured seriously and you are at fault in the accident. Even the minimum coverage required by most state laws is not sufficient to completely protect you against all claims, but it is far superior to having no coverage at all. You are not relieved of responsibility for the accident by not having insurance; you are only making it more difficult for you financially.
If you are convicted of driving without insurance, you may be required to carry an SR-22 certificate of financial responsibility for 1 to 5 years, pay court costs and other citations associated with the case. Multiple convictions include higher fines as well as jail time. Additionally, each time you are convicted of such a violation, the risk to insure you increases, resulting in higher premiums.