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The Consequences of Driving Without Insurance As A New Driver

The Consequences of Driving Without Insurance As A New Driver

Auto, Aviation & Transportation

Although becoming a new driver is an exciting moment in your life, you should know that it also comes with a few responsibilities, the most important one being obtaining car insurance.

Unfortunately, many new drivers decide not to buy auto insurance for a variety of reasons. However, most countries require all drivers to purchase car insurance by law, including the new ones, so they can reap all the benefits it provides

Choosing the right coverage will provide people with financial protection by covering all expenses, repair costs, and medical bills that may incur as a result of unfortunate events. Besides this, obtaining car insurance also provides legal protection by helping drivers avoid stiff penalties.

In this post, we elaborate on the importance of auto insurance and what the rules are if you get caught driving without one. 

Photo by Ryotando from Unsplash

The importance of having car insurance

The importance of having car insurance cannot be overlooked, especially if you are a new driver. As you are slowly learning your way around the streets, you are more likely to make mistakes while driving, increasing the risk of getting into an accident. This is where your car insurance can come in handy and cover all expenses associated with the accident.

The only downside to obtaining auto insurance as a new driver is that you will pay more for the insurance than those with experience. Luckily, there are some ways you can save on your policy and get coverage that suits your budget and unique needs. Some of these include shopping around, staying on a family auto insurance policy, looking for discounts, and keeping a clean driving record.

For instance, if you are a new driver in Canada, click here to learn about the different types of car insurance coverage and how you can get the best quote. 

Penalties for driving without proof of insurance

Although the consequences of driving without proof of insurance can vary dramatically. Moreover, the penalties can range from a slap on the wrist, if you are lucky, to large fines and in some cases even jail time. The penalties can be particularly serious for individuals who are considered high-risk drivers and repeat offenders.

In any case, here is a list of some consequences you could face:

  • Fines that can run anywhere from $100 to $1,500, depending on your state;
  • License suspension, which may not be reinstated until you get your car insurance; 
  • Vehicle registration suspension or revocation indefinitely; 
  • Vehicle impoundment;
  • Fees;
  • Jail time. 

Getting pulled over without insurance

In general, if you get pulled over without insurance, you will most likely get a ticket that carries a fine. For instance, in California, if you are a first-time offender, your fine can be around $100 and $200, plus penalty fees. In other states, there is a possibility that your driver’s license and registration may be suspended, which will require fees to have them reinstated.

Also, in some states, the law enforcement officer that pulls you over can impound your vehicle if they believe it is necessary. It is important to note that you will be responsible for covering all towing fees and related costs, and you may not be able to get your vehicle until you show proof of car insurance. 

As soon as you have been cited for not having auto insurance, you will find out that the cost of the insurance will be now even higher than if you had had a policy all along. This is because traffic violations can significantly affect the premium of your car insurance coverage.

Getting into an accident without insurance

If you get into an accident without insurance, then the consequences can be more serious. Not only will you pay great fines, but your license will most likely be suspended and your vehicle impounded. You will also be required to file documents of financial responsibility with your state’s Department of Motor Vehicles (DMV), which is the certificate that proves you carry the minimum amount of required car insurance.

If you caused any injuries and property damage in the accident, then you will also be responsible for covering all repair costs and medical bills. If you are unable to pay for the cost of an accident, you could face bankruptcy or other financial distress. 

Final thoughts

If you are a new driver, it is important that you obtain car insurance. Choosing the right coverage can provide you with both financial and legal protection in case you get involved in an accident that results in severe injuries and damages. Otherwise, you will be facing serious penalties that may result in high fines, license suspension, vehicle impoundment, and even jail time.

The Consequences of Driving Without Insurance As A New Driver

Auto, Aviation & Transportation