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Driving without insurance is possible if you're not caught, but is it worth it? That's a hard no, especially given the potential legal penalties and financial risks. It's illegal to drive without auto insurance in all but one state, and failure to have adequate coverage puts you at risk of incurring fines, losing your car or license and even serving jail time (among other penalties).
That's not to mention risking your financial security due to potential out-of-pocket costs should you be on the hook for damage to your car or someone else's. Here's what could happen if you drive without insurance and how to get coverage now.
Can You Drive Without Insurance?
In every state but New Hampshire, drivers must have at least basic car insurance coverage to legally drive on public roads. Even in New Hampshire, though, drivers still must show they have financial responsibility should they cause an accident that results in injuries or damage (and insurance is one, but not the only way, to do this in that state).
What constitutes the minimum required basic car insurance varies by state, both in terms of minimum financial coverage and the type of coverage. The state of Florida only requires that drivers have property damage liability coverage. All other states require that plus bodily injury liability coverage. Some states have additional requirements, such as coverage for personal injury protection, medical payments or uninsured/underinsured motorists.
Learn more >> Do You Need Car Insurance?
Penalties for Driving Without Insurance
Depending on the state you're driving in, the exact situation and whether you've been cited for driving without insurance coverage before, the possible penalties can vary. Potential consequences for driving without a license can include:
If You Get Pulled Over
A police officer can't generally pull you over simply to check if you're insured, but they can request to view your proof of insurance if you're pulled over for another reason. In most states, driving without insurance is considered either a traffic infraction or misdemeanor.
In addition to a ticket, you might face penalties listed below, though note that the more severe penalties (including high fines) are typically reserved for drivers involved in an accident or those who have other violations within a several-year period.
- Paying fines (these vary by state and can typically cost $50 to $2,000, though potentially as much as $5,000)
- Possibly owing additional fees or civil penalties to your department of motor vehicles (DMV) or Secretary of State
- Spending time in jail (typically not for first offenders or those not involved in accidents, but in some states, it's possible)
- Having your license and/or registration suspended
- Having your car impounded and possibly your license plate removed
- Doing community service
- Having demerit points on your driving record
You may also see your future car insurance premiums skyrocket after being caught on the road without insurance.
If You're in an Accident
If you're uninsured and in a wreck, you may face more severe penalties. Fines could be higher than if you simply pulled over without insurance coverage, and you may be more likely to spend time in jail, have your license suspended until you have proof of insurance or get your car impounded.
Without liability coverage from insurance, you could also be on the hook for significant financial costs—depending on who's at fault. If you're found at fault in an accident without an insurance policy to cover injuries or vehicle damage, you could face out-of-pocket costs in the hundreds of thousands. Or, if the other driver is at fault, you might have a harder time getting compensated for injury or damages since you're uninsured. If you live in a no-fault insurance state, you're uninsured and the other driver files a car accident lawsuit against you, you could also be forced to stomach those costs out of pocket.
Can You Buy a Car Without Insurance?
If you buy a car in cash from a dealer, or privately from a seller, you might not be asked to provide proof of insurance.
However, if you financed or leased the vehicle, the dealer or lender will typically require insurance to help protect their monetary investment in the car. Expect the agreement to require that you show proof of comprehensive and collision insurance before driving off the lot.
How to Get Car Insurance
Driving without insurance is inadvisable due to the financial and legal risks of doing so. If you're ready to get a car insurance policy, follow these steps:
1. Learn About Different Types of Auto Insurance
Let's be honest: Car insurance can be complicated. There are a variety of coverage types, and you may be surprised by what some do and don't cover. Do some research to learn what different coverage options actually entail, especially if you think you'll want specific types of protection (for example, coverage for damage from certain weather events with a comprehensive policy).
Learn more >> What Are the Different Types of Car Insurance?
2. Determine Your Coverage Needs and Requirements
Unless you live in New Hampshire, you'll be subject to at least some level of minimum insurance coverage. Look up your state's requirements, though know that if you gather insurance quotes online, you should only be offered plans that meet those minimums.
If you plan to lease or finance a vehicle, consider asking the lender or lienholder what their coverage requirements are so you can line up the right type of policy in advance.
Other factors can determine what coverage to get, such as your budget or the type of car. For example, for an older car you own outright that's not rare or valuable, it might not make sense to get comprehensive and collision insurance since it could cost more over a year than the car's value. To enhance your legal and financial protection, you might also consider getting more coverage than the basic state-required types and amounts.
Learn more >> How Much Car Insurance Do I Need?
3. Compare Quotes
It's possible you want to go with an insurer you already use, especially if that means getting a bundle discount. But it's worth obtaining free quotes from multiple insurers since rates can vary quite a bit. You can manually check rates, though it can be time-consuming, so consider using a service like Experian's car insurance comparison tool to collect dozens of rates at once.
4. Check Other Ways to Save
As you compare insurers and coverage types, make sure to also explore different money-saving options. Some insurance companies will reduce rates for things like having multiple insured vehicles, driving without violations or accidents, paying annually rather than monthly, having a car with safety features and more.
5. Select a Plan and Pay
Once you've chosen a quote for coverage from an insurer, complete the application. If approved to be a policyholder, you'll submit payment and be covered from your requested start date. Don't forget to put a copy of your insurance information in your vehicle!
Save More With Strong Credit
In most states, insurers are allowed to look at credit-based insurance scores to set premium rates for customers. This information helps car insurance companies predict if you're likely to pay your premiums on time or submit a claim. Because of this, you might be able to qualify for lower car insurance rates by improving your credit.
Note that these states do not allow insurers to use credit to determine auto or homeowner insurance policies: California, Hawaii, Maryland, Massachusetts, Michigan, Nevada, Oregon and Utah. If you're in a state other than those eight, consider taking steps to improve your credit before applying for a new insurance policy since you might qualify for a better rate.