Obtaining and keeping current on liability auto coverage is required by law in order to drive in all 50 states. The decision to drive while not insured can cost you heavy fines, loss of your license and even jail time in some states. Liability insurance doesn’t just protect cars, it protects people from financial pitfalls and legal consequences. Driving without it is a huge risk that you don’t want to take. 

If you are pulled over for any offence and cannot show proof of insurance, you are going to receive a ticket at best and face arrest at the worse case scenario. If you are in an automobile accident without insurance then your problems are even greater. If you are found at fault for the accident you are required to pay the damages. A few years ago the average medical damages from a single accident were $15,443 and the average property damage from a single accident was as much as $3,231. If you cannot pay then you face possible jail time or garnished wages. 

Even if you are not found at fault for the accident, not carrying insurance will greatly affect the outcome of the accident as you lose the right to sue for damages and cannot make any claims for damage or lost wages. The risks of driving uninsured far outweigh the cost of insurance premiums. 

Failure to obtain insurance or keep current on payments are just two ways you can lose the benefits of auto insurance. Your policy is a contract and not adhering to the rules can also constitute lack of proper coverage. This can include things such as:

  • Buying a new car and not notifying your provider.

  • Selling a car and not notifying your provider.

  • Failure to add a new teen driver to your policy.

  • Failure to add drivers who might borrow your car to the policy.

  • Moving out of state or allowing car to be used by out of state college student without notifying your provider. 

  • Any other violation of the contract between you and your auto insurance provider.  

To be safe, read your policy closely and follow all the rules, pay your premiums on time, pre-pay or use auto draft protections to prevent a lapse in coverage and always notify your insurance company of any changes to automobiles, drivers, or states of residence. 

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