Car Accident And No Insurance FAQ

Not having insurance and driving a motor vehicle is illegal in most states. You can face penalties ranging from the loss of your driver’s license to jail time, depending on the state and how many times you have been caught without insurance.

If Your The Driver Without Car Insurance 

If you are involved in a car accident without insurance  you will have to pay for all the damage to your car out of your own pocket. You could also be sued by those who you injured. This rings true even if you attempt to circumvent the repercussions by obtaining car insurance the next day. That insurance would only protect you from future accidents not ones you were recently in.

In a car accident without insurance, it would honestly, be better if someone hits you since it is the driver at fault that has to pay for any damages in a car accident.  Be warned however, that state laws may limit how much the faulty driver has to pay for if you happen to not have insurance. Your insurance rates could also skyrocket when you do happen to get insurance in the future.

All About the Money:

If you created the accident
Your insurance company (IC) pays, it will heavily depend on your state. In no-fault insurance states (there is 12 of them) drivers make claims through their own insurance regardless who was at the fault for the crash.
Someone else caused this mess
Those with no insurance may be limited in what they can sue the at-fault driver, depending on the state. Some states that have “no pay, no play” laws where uninsured drivers are prevented from suing other drivers for damages past a certain financial amount. There may also be other laws at play that could cap the amount to recovery as well depending on the injuries that occurred. If you live in a no pay no play state you could have to pay an expensive deductible ($20k) . T

States with “no pay, no play” laws are:

  • Oregon
  • Alaska
  • Indiana
  • California
  • Kansas
  • Missouri
  • New Jersey
  • Oklahoma
  • Louisiana
  • North Dakota

Car insurance is necessary

Alaska and New Hampshire are the only states where insurance is not technically required. New Hampshire does not require it if you have a clean driving record and Alaska doesn’t require it in certain jurisdictions where registering the car itself is optional.

Consequences for getting caught without insurance

If you’re caught driving without insurance , you could face a wide range of penalties.

For instance, first-time offenders in the state of Texas face a fine of at least $175. That might not seem like much, but if you journey up to Minnesota, it is about $1,000, or up to 90 days in jail and if that’s not bad enough you could face a loss of your license and registration. Here is a list of penalties for driving without insurance compiled by the Consumer Federation of America if you want to check out your state.

If you have insurance, but no proof with you at the scene of the accident

If you cause an accident but have no proof of insurance, you will live to see another day. At most you could get a citation from the police, but it will likely disappear from your record if you have proof of that at work. Remember if you are in a car accident without insurance you risk your perfect legal record. Also, if you’re in a car accident without insurance and are probation you might also be at risk for an additional penalty.

An accident with no insurance will hurt your future rates

In California, Illinois and Texas, drivers who were uninsured and were in a car accident received the following penalties. If you want additional information check out our car accident FAQ.

Car insurance prices if you cause an accident without insurance
State Average rate for good drivers Average rate with one at-fault crash Average rate with one at-fault crash and no proof of insurance
California $1,293 per year $2,016 per year $2,084 per year
Illinois $1,029 per year $1,389 per year $1,409 per year
Texas $1,429 per year $2,010 per year $2,092 per year
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