Consequences of Driving without Insurance
What happens if you are caught driving without a car
insurance? The laws related to car insurance vary from country to country and
also from state to state; however, in India, it is mandated by the Motor
Vehicles Act. The car insurance is important because an automobile in a public
area (road/street/highway) can cause damage to property and life. Of course,
car insurance incorporates many benefits like protecting your car against third
party liabilities, damage -damage caused by natural calamities, and theft. In
the United States, most states have Financial Laws that determine the amount of
car insurance every driver hold to be able to drive on public streets and
highways. The liability insurance is an absolute minimal coverage, which just
gives money related compensation for damaged property and injured third parties.
Basically, drivers own losses are not covered under liability insurance. So, a
person should at least purchase liability insurance (minimal car insurance); if
not, he or she might face troubles like loss of driving benefits, community
service (court ordered), and fine. The penalties for driving without vehicle
insurance may vary, again from country to country and state to state. Let's
talk about some more aspects related to car insurance and What Could Happen if you
Drive Without Car Insurance.
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| © Akhil Sharma | AnythingRelated.com | All Rights Reserved |
Insurance Coverage or Financial Responsibility
In this age, car insurance is not only important, but also
compulsory. Many lenders won't finance your car without proof of financial
responsibility. If you are ready to provide minimal insurance on the car, then
it is possible. In the US and India, traffic police as well as the law
enforcement officers has the right to create traffic checkpoints and ask for
proof of insurance coverage. However, in a few regions, it is allowed for
drivers to show the proof of financial responsibility instead of coverage. A
self insurance policy or surety bond can be provided as a proof of financial
responsibility, but this practice is not common in most of the areas.
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| © Akhil Sharma | AnythingRelated.com | All Rights Reserved |
What happens If You Get Caught With No Insurance
If you drive your car without coverage, being aware of this
fact, you should also know the consequences. Do you know the cost of not having a car
insurance in an accident? To begin with, You will be liable for all medical and
therapeutic costs suffered by the other party in an accident. You will also
have to pay for a replacement car; as
you are responsible, or you will likewise need to restore the damaged
automobile to its original state. Apart from this, you will also be charged for
violating the driving rules (as per your country) or state law. After this, the
court will charge you fines, suspension of driving license or privileges, or
community service. There are punitive point systems in most of the countries;
more points to your driving records means more possibility of the cancellation
of driving license or suspension of driving benefits.
Consequences of Violating Financial Resposnility Laws
If you violate the financial responsibility laws regarding
vehicle insurance, there are chances that you won't be able to get affordable
insurance coverage in the future. Most of the insurance companies often run
background checks to find out the risk factor of potential customers. There are
two possibilities when you are found guilty of violating the laws; either the
insurance company will disqualify you as an applicant or can raise the premiums
drastically. There are a few exceptions and loopholes in financial responsibility
laws, but I don't want to talk about them due to two reasons; I am not an attorney
and I want to write about the consequences only (to raise awareness).
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| © Akhil Sharma | AnythingRelated.com | All Rights Reserved |
Fundamental Disadvantages of Driving Without Insurance
- You will be fined, and you will get a ticket (different penalties as per the state laws)
- Your Driving License will be suspended if you drive without insurance
- Without the proof of car insurance, the police will not allow you to drive, which implies you car may get towed.
- You might have to pay damages (if any) out of pocket.
Bottom Line
Simply speaking, numerous bad things can happen if you drive
a car or any other vehicle without insurance. Obviously, you will be
financially responsible for all the losses of the other driver like property or
car damage and hospital bills. If you are unable to pay or refuse to pay, then
the other driver will be able to sue you. If you keep on driving your car
without insurance, every traffic police officer on the street or highway can
charge you with a serious crime. So, at least obtain a liability car insurance
or whatever the minimal coverage is needed by state law. Don't Risk Your
Life!!!
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| © Akhil Sharma | AnythingRelated.com | All Rights Reserved |
It's interesting to read how things are the different/same in other countries. Here in the UK, you can have your car seized and crushed, and get lots of points on your license.
ReplyDeleteHere it's illegal to drive without insurance. You can't even take a car off the sales lot without it.
ReplyDeleteThis is a great reminder and warning to those who do not follow the rules of vehicle insurance.
ReplyDeleteIt drives me crazy that people let their insurance lapse after having bought it for mandatory reasons. I wish there was a way to prevent that. I've had people hit me in parking lots and then I found out they didn't have insurance. Ticked me off!
ReplyDeleteIn NH you don't have to have car insurance, but I have always had it since I got my license at age 16. It just was common sense to me to have that protection!
ReplyDeleteI am too much of a scardy cat to try and drive without insurance. But, it would be my luck to be hit by a driver who does not carry insurance.
ReplyDeleteDriving without insurance is dangerous and could be so expensive if you have to pay for an accident!
ReplyDeleteMy husband was hit by someone with no insurance about a onth ago. Awful!
ReplyDeleteI was just talking about insurance today. I was cleaning out my car and noticed the insurance card I had was an expired card and I needed to print out the new one. It is so important to be insured, plus it's the law.
ReplyDeleteIt's definitely important to have car insurance for your own safety. I think that's pretty much a given when you buy a car. It's something that you can't just neglect.
ReplyDeleteYeah I would never feel good about driving without insurance. You just never know when an accident could happen! Amber N
ReplyDeleteInsurance is a necessity no matter where you live. It is important to maintain that safety net not only for others but for yourself as well.
ReplyDeleteSo follow the rules in driving.. :)
ReplyDeleteI am never without my insurance and haven't been since I started driving at 16. No reason to be driving if you can't keep insurance.
ReplyDeleteIt is mandatory where we live to have car insurance. We face a fine up to $60.000 if you are caught driving without it.I would hate to get into an accident without it.
ReplyDeleteMy sister just recently got into a car accident but luckily she had car insurance! I know plenty of people who have gotten into wrecks and look back and wish they had, though. Great information!
ReplyDeleteI remember knowing someone many years ago who always drove without insurance. You are going to get caught if you do it. It's just not worth it.
ReplyDeleteInteresting information. I thought it was a law/mandatory in every state. I always worry other drivers don't follow the law.
ReplyDeleteInsurance are very very important when you have a vehicle. It has a lot of benefits and it is also required when you plan to buy a car.
ReplyDeleteInsurance is really important. I remember my uncle when he had an accident and sadly, he doesn't have an insurance.
ReplyDeleteI think a car insurance is always an important thing to have, no matter which country you are from, as most countries have strict rules on it. You are going to be fined & I don't think you can drive either without getting it done right away!
ReplyDeleteIt's important in so many ways. We can predict what will happen in life so better safe than sorry! That's how I see it.
ReplyDeleteThis one's a good shoutout to those who may want to step up on safety road lessons as well. In some places and countries, insurance rules and laws are very lenient because it creates profit.
ReplyDeleteInsurance are really important and at the same time follow the rules and have a safe driving.
ReplyDeleteThe same applies in many countries around the world. It's a dangerous and costly liability to drive without insurance.
ReplyDeleteActually, car insurance is not compulsory in all 50 states if you own your car outright. Yes, you still have the consequences of having to pay for an accident on your own. It's why I carry full coverage instead of PIP and Liability - in includes uninsured motorist coverage.
ReplyDeleteI have always had insurance on my cars and I cannot imagine not carrying insurance.
ReplyDelete