In today’s stressful world, you can forget to pay for your car insurance. There may be times when you just can’t afford to pay your auto insurance premiums. Letting your car insurance lapse, however, can cost you so much more than what your premiums would be over the course of a year. Understanding the consequences of not having car insurance may help you make a wiser choice regarding driving without a valid policy.
The following are the 5 critical consequences of driving without car insurance.
1. Heavy Fines and Fees and Other Penalties
If you are caught driving without valid car insurance, you will be given a ticket and will more than likely result in your drivers’ license being suspended. In addition to a suspended license, you will have to pay the fines associated with your ticket as well as court costs. When you apply to have your license reinstated, you will have to pay a reinstatement fee that can, in some states, be approximately $130-$200 or more.
2. Personal Liability Towards Third-party Losses
If you are involved in a car accident and do not have a valid auto insurance policy, you will be held personally liable for any third-party losses. This includes any property damage to their vehicle and any medical expenses they may incur from injuries they received from the accident. You will also have to reimburse them for any time they may have been forced to take off of work to recover.
3. Liable for Any Damage to Your Vehicle and Medical Bills
In addition to paying for any third-party expenses, you will also have to pay for the repairs on your own vehicle. Any cost you incur from the accident will come out of your pocket, including medical bills and time off of work. If you need your drivers’ license for your job, you may end up being terminated if you can no longer drive for your company.
4. Face Legal Action If the Accident Causes Significant Damage
Driving without having valid auto insurance on your vehicle is against the law. If you are the cause of an accident that results in significant damages or a fatality, you may face legal action. Family members may file a lawsuit against you if their loved one is harmed or killed in an accident that you are responsible for. If this is a second or third offense, the state may file a lawsuit against you as well.
5. Lapsed Auto Insurance Can Lead to Loss of Your No Claim Bonus
If you accidentally let your auto insurance coverage lapse, you may lose your ‘No Claim Bonus’ that many carriers offer to their dedicated clients. The first time you let your policy lapse for any reason, even if it is just a late payment, you may lose your No Claim Bonus. This is a perk you don’t get back once it’s been lost.
Not having valid auto insurance coverage can be costly. If you don’t have coverage or your current carrier has canceled your coverage, call and talk to the insurance professionals at Advanced Insurance Group. We have options that will allow you to get the coverage you need to be legal. Don’t wait until you are involved in an accident or get a ticket. Make the call now!