What Happens If I Don’t Purchase Car Insurance and I Cause an Accident?

In most states, auto insurance is a requirement to operate a motor vehicle. Not having it puts you at risk of receiving a ticket or license suspension. However, there are other consequences to not having car insurance that could cost you even more. If you failed to purchase auto insurance, take into consideration what could happen.

Meeting State Requirements

Most states require drivers to have auto insurance in place before they get behind the wheel of a car. Not only that, they require your to have a certain amount of coverage.

This is generally only a requirement for liability insurance. This type of insurance covers the other driver or property owner in situations where you cause damage. It does not cover your property, though. Therefore, the bare minimum requirements for insurance are just a starting point. However, not having these minimums can mean fines. You may see the police impound your car. And, over time, you may see your license suspended.

The Risks of Loss

By far the more expensive loss comes from lacking coverage when an accident occurs. Simple accidents, such as backing into a mailbox, may not seem like they are expensive. However, it does not take much for the costs to add up.

Consider a simple accident, such as backing out and hitting a parked car. What could this mean for you?

• You are likely legally responsible for the damage caused to the parked car. This may be a few thousand dollars or more, depending on the amount of damage present.
• If someone suffers an injury during the incident, the costs escalate quickly. Just a trip to the emergency room for a checkup can mean thousands of dollars.
• Then, there is damage to your own car. If the damage is minor, you may not want to repair it. This reduces the value of your car in the long term.

Now, consider these losses on a grander scale. If the accident happens on a roadway or freeway, the costs rise considerably. You could face a lawsuit if you cannot pay for the damage you cause to the other party’s property as well. And, if you cannot pay then, your assets, including your home, could be on the line.

It is much easier and less costly to simply purchase an auto insurance policy. It gives you peace of mind and protects your investment in your car and that of others driving on the road with you.

Also Read: Does Auto Insurance Cover the Car or the Driver?