What Happens if You Drive Without Car Insurance?

Can You Drive Without Insurance?

All states, except New Hampshire, require drivers to have liability coverage to drive legally on public roads. New Hampshire drivers who opt out of buying coverage must prove they can meet the state's financial responsibility requirements if they cause an accident.

Many states also require additional types of coverage, such as uninsured or underinsured motorist coverage, personal injury protection or medical payments coverage. Coverage requirements and policy limits vary based on where you live.

While not required by law, lenders typically require drivers to maintain comprehensive and collision coverage if they have an auto loan or lease.

Learn more: What Are the Types of Car Insurance?

What Are the Consequences of Driving Without Insurance?

The penalties for driving without insurance vary depending on the laws in your state and how many times you've been caught. Generally, here's what you can expect:

• Fines: You may face a penalty ranging from a nominal fee to several thousand dollars, with higher amounts typically reserved for subsequent offenses.
• License and registration suspension: The state may suspend your license and/or registration, and you may be required to pay a reinstatement fee to get them back.
• Vehicle impoundment: Since driving without insurance is illegal in almost every state, your vehicle may be sent to the impound lot, requiring you to pay to get it back.
• Jail time: Driving without insurance may be considered a misdemeanor or felony. In some cases, doing so can result in jail time.
• Higher insurance rates: When you lack coverage for a period of time, you will typically face higher rates when you purchase insurance once again.
• SR-22: An SR-22 is a form your insurance company must file with your state's department of motor vehicles to prove you have coverage. Not all insurers offer coverage to drivers who need an SR-22, and those that do typically charge higher rates due to the extra risk. Plus, you'll have to pay a filing fee, which generally ranges from $25 to $50.
• Points: Your state may add points to your license, which usually causes insurance rates to increase.
• Out-of-pocket expenses: If you're at fault in an accident and don't have adequate insurance coverage, you'll be on the hook for covering vehicle repairs and injuries. You may also have to pay legal fees and judgments if someone sues you after an accident.
• Vehicle repossession: Lenders typically require drivers to maintain full coverage when financing their vehicles. Not having the required coverage breaches your loan agreement and could result in the lender repossessing your vehicle.

What Happens if You Get Pulled Over Without Insurance?

If you get pulled over and don't have insurance, you'll probably get a ticket and have to pay a fine. Depending on the laws in your state, your license may be suspended and your car might be impounded. If your car is impounded, you'll probably have to pay a fee to get it out of the impound lot. In some states, you may also face jail time.

What Happens if You Get Into an Accident Without Insurance?

If you're in an accident and don't have insurance, you'll typically face all the same penalties you would if you were pulled over and didn't have insurance. If you caused the accident, you could also be responsible for any injuries and damage that resulted.

What Are the Minimum Car Insurance Requirements?

Requirements vary by state, but here are some common types of coverage your state may require.

Liability

Liability coverage is composed of two parts: bodily injury and property damage. Bodily injury helps pay for other people's injuries if you're at fault in an accident, and property damage pays for their vehicle repairs. It doesn't pay for your injuries or repairs to your vehicle. Minimum liability limits vary, depending on where you live.

State minimum requirements are generally not enough to cover a serious accident. Because insurance is meant to protect your finances if you're in an accident, experts typically recommend purchasing more than the minimum. Depending on your assets, you may also want to explore getting an umbrella policy for added protection.

Learn more: Minimum Car Insurance by State

Uninsured/Underinsured Motorist (UI/UIM)

UI/UIM protects you if someone without insurance or without enough insurance hits you. Uninsured motorist kicks in if the at-fault driver doesn't have insurance, and underinsured motorist takes over if the at-fault driver's policy limits aren't high enough to cover injuries and damage. Uninsured motorist may also cover you if you're the victim of a hit-and-run.

Personal Injury Protection (PIP)

PIP helps pay your and your passengers' medical bills after an accident, regardless of who is at fault. Depending on where you live, it may also cover other accident-related expenses, such as lost wages and funeral expenses, and pay for routine services you can't complete because of your injuries, such as child care or driving. States with no-fault insurance laws require drivers to maintain PIP, and a few states with at-fault laws also require it. It's optional in a handful of others but isn't available in all states.

Medical Payments (MedPay)

Like PIP, MedPay may help pay for your and your passengers' medical bills after an accident, no matter who caused it. MedPay is required in a few states but is optional in most.

Tip: To find out what coverages you must maintain, check with the motor vehicle administration in your state, your insurer or your insurance agent. Your insurance company or agent can also help you decide what limits to maintain based on the laws where you live and the assets you want to protect.

How to Get Car Insurance if You're Currently Uninsured

Insurers may view you as a high-risk driver if you've had a lapse in coverage, making it more of a challenge to get a policy. Here are some tips that might help you get the coverage you need.

1. Shop around. If you recently had insurance, start with your previous provider. Depending on how long it's been since your coverage lapsed, they may be willing to reinstate it. If you can't get your previous coverage reinstated, get quotes from multiple insurers to improve your odds of getting a low rate. Consider checking with providers who specialize in insuring high-risk drivers.
2. Check your state insurance pool. If you're unable to secure coverage through a traditional insurer, check with your state's insurance pool. It will cost more, but you'll be able to drive legally. This coverage is specifically designed for drivers who can't get coverage in the traditional market.
3. Decide on coverage types and policy limits. At a minimum, you need enough coverage to satisfy legal and lender requirements. Consider other coverage types and increased policy limits for added protection.
4. Look for discounts. Many insurers offer various discounts that may help reduce your insurance costs. Check with your insurer to find out which (if any) you're eligible for and ensure they get applied to your policy.
5. Choose a carrier and buy the policy. Once you've determined which provider offers the best value, complete an application and purchase a policy. If necessary, have your insurer file an SR-22 form with the state, and pay the filing fee.

Learn more: Average Cost of Car Insurance in the U.S.

Frequently Asked Questions

The Bottom Line

Driving without insurance can result in many negative consequences, including fines, license and registration suspension, vehicle impoundment, jail time and more. You can avoid these penalties by maintaining at least the minimum amount of insurance your state requires. If you're struggling to fit your payments into your budget, shopping around, comparing quotes and asking about discounts may help you save on coverage.

Experian's auto insurance comparison tool can help you compare quotes from more than a dozen top providers.