NEED TO KNOW
Facts to guide your decision:
• Liability car insurance is required by most states.
• Being in an accident without auto insurance could be very expensive.
• Call your car insurance company as soon as possible to check your options for reinstatement or starting a new policy.
When money is tight and finances are stretched thin, difficult choices about which bills to pay often have to be made. Before deciding to let your car insurance lapse, though, you should understand the potential impact this decision could have if you were to be in an accident without insurance.
A gap in insurance coverage could be very expensive
• You may be charged additional fees or costs to reinstate your policy once it has lapsed.
• If your insurance policy lapses, you may have to start a new policy. A new quote might reflect new rate changes, and having even a brief lapse in coverage could negatively affect your new rate.
• Some states may suspend the licenses of uninsured drivers, which might lead to even more reinstatement expenses. These costs vary from state to state but could range from $100 to more than $1,000.
Negative Impacts of Driving Without Car Insurance
If you drive without insurance and cause an accident or damage to another person’s property, you may face tickets, citations or other court costs. and you may be held personally responsible for all damages incurred by the other party. This could include:
• Property damages
• Medical bills
• Lost wages
• Pain and suffering
The other party may also sue you directly to recover some the losses they have incurred. In some cases, a judgment against you can allow the court to garnish your wages, place a lien on your property or even freeze your bank accounts.
Car Insurance Matters Even If You’re Not at Fault
If you’re uninsured and in an accident with another uninsured driver, you may be responsible for repairs and other associated costs. If your car is totaled, you may have to pursue legal actions against the other uninsured driver, which can be an expensive and time-consuming process that can often take months or even years to resolve.
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