Car Blog

The risks associated with driving uninsured can feel like an abstract concern for many people. In fact, some uninsured drivers may believe that the small amount of money they save upfront can more than offset those risks. Realistically, though, uninsured drivers risk many significant sanctions and other consequences that make driving without insurance a dangerous gamble.

1. Extensive Financial Liability

In the event of an accident that damages someone else’s property or injures other people, drivers may face significant financial liability. Some things uninsured drivers are responsible for paying on their own are:

• The cost of repairing or replacing damaged property
• Medical bills and treatment for any people injured in the accident
• Non-economic damages, such as pain and suffering or loss of consortium

Some states cap non-economic damages, but when it comes to economic damages —such as medical bills and property repair — there is no limit to what an uninsured driver can be held responsible for paying. The financial liabilities are highlighted extremely well in the following infographic:

Presented By IFA Auto Insurance

2. Personal Losses

Of course, uninsured drivers can also sustain personal injuries or damage to their own property. Depending on the circumstances of the accident, an insured driver might have the opportunity to collect compensation for damage to the vehicle and personal medical bills. An uninsured driver risks debt and other consequences, such as missing work due to lack of transportation, regardless of the circumstances of the accident.

3. Legal Sanctions

Every state except for New Hampshire requires drivers to carry auto insurance. The penalties for drivers who violate this law vary by state, but in most states, drivers may face fines, tickets, license suspension, and vehicle registration suspension. Some states may also require drivers who are caught driving uninsured to carry SR-22 insurance in the future, even if the driver did not cause an accident.

4. Lost Rights After an Injury

Many drivers don’t realize that the decision to drive without car insurance can even lead to issues in an accident in which another driver was at fault. Drivers who lack insurance may still seek compensation for property damage and personal injuries. However, in a number of states, uninsured drivers may not seek compensation for lost wages or non-economic damages. In the event of severe accidents, this can be a significant loss.

Avoiding Unnecessary Strife

It is surprising that many drivers would choose to risk these consequences instead of investing in an insurance policy, especially considering how customizable and affordable most policies are. Anyone who currently lacks insurance should speak with an insurance agent about remedying the issue. Drivers who fail to do so will regret the decision when they find themselves facing significant liability and personal losses.