Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Reviewed by Mathew B. Sims
Editor-in-Chief

UPDATED: Nov 30, 2020

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Things to remember...

  • Driving a car without insurance is illegal in all but two states — New Hampshire and Virginia.
  • Liability insurance is tied to the car rather than the vehicle operator.
  • Vehicles cannot be tagged and registered without proper insurance.
  • Each state has specific penalties for driving a car uninsured or without proper proof of financial responsibility.
  • Fines for driving uninsured range anywhere from $75 to $5,000.
  • There are ways to lessen or even have the charges against you for operating a vehicle without insurance dismissed.
  • Getting caught operating a vehicle without insurance could keep you from finding affordable insurance rates in the future.

Can I drive an uninsured car on my own insurance? The short answer is no, but there are complex laws that vary by state. If you’re in a situation where you need to borrow a car, then you should ask about the insurance coverage before getting behind the wheel. Being insured but driving an uninsured vehicle could result in big fines. 

Even if you have your own insurance for other vehicles, you’ll still be considered uninsured if the car is not properly insured under state laws.

Can you drive a car with no insurance? In almost all circumstances, the answer is no. Looking for cheap auto insurance? Affordable auto insurance doesn’t have to be hard to find.

Operating a vehicle without insurance is never worth it; get adequate protection at an affordable price — enter your ZIP code in the comparison tool above to find rates available in your area.

Table of Contents

Penalties by State for Driving a Vehicle Without Insurance

Wondering what happens if you don’t have insurance coverage on your vehicle? Penalties for driving without proper insurance vary by state, but you could face fines up to $5,000, points against your driving record, or license suspension. Paying a fine for not insuring your car could cause a huge financial burden. 

In the United States, every state requires proof of financial responsibility for you to drive a car.

While most states require specific amounts and types of auto insurance coverage, there are two states — New Hampshire, and Virginia — that will allow drivers like you to prove financial responsibility in other ways.

Even in the two states mentioned above, purchasing auto insurance coverage is always a better option than choosing to drive uninsured and incur the full costs of any potential damages or injuries.

In addition to having minimum requirements for insurance on behicles, each state also has specific penalties for driving an uninsured vehicle or without proper proof of financial responsibility. Depending on the state, these penalties may include:

  • Points against your driving record
  • Fines and reinstatement fees
  • License and/or registration suspensions
  • Car impoundment
  • Mandatory high-risk auto insurance coverage
  • Mandated community service
  • Jail time

Keep reading to discover the penalties you could receive where you live, should you choose to drive without insurance. Also, read through some of our tips for lessening these consequences.

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Penalties by State for Driving Without Proper Insurance

What happens if you drive with no insurance in my state?

Take a look at our research below, featuring penalties for each state.

Penalties for Driving without Auto Insurance by State
StatesPenalties for
First Offense
Penalties for
Second Offense
AlabamaFine: Up to $500; registration suspension with $200 reinstatement feeFine: Up to $1,000 and/or six-month license suspension; $400 reinstatement fee with four-month registration suspension
AlaskaLicense suspension for 90 daysLicense suspension for one year
ArizonaFine: $500 (or more); license/registration/license plate suspension for three monthsFine: $750 (or more within 36 months); license/registration/license plate suspension for six months
ArkansasFine: $50 to $250; suspended registration/no plates until proof of coverage plus $20 reinstatement fee; court may order impoundmentFine: $250 to $500 fine — minimum fine mandatory; suspended registration/no plates until proof of coverage plus $20 reinstatement fee. Court may order impoundment
CaliforniaFine: $100-$200 plus penalty assessments. Court may order impoundmentFine: $200-$500 within three years plus penalty assessments. Court may order impoundment
ColoradoFine: $500 minimum fine; 4 points against your license; license suspension until you can show proof to the DMV that you are insured. Courts may add up to 40 hours community service$1,000 minimum fine and license suspension for 4 months; 4 points against your license. Courts may add up to 40 hours community service
ConnecticutFine: $100-$1000; suspended registration/license for one month (show proof of insurance) with $175 reinstatement feeFine: $100-$1000; suspended registration/license for six months (show proof of insurance) with $175 reinstatement fee
DelawareFine: $1500 minimum fine; license/privilege suspension for six monthsFine: $3000 minimum fine within three years; license/privilege suspension for six months
FloridaSuspension of license and registration until reinstatement fee is paid and non-cancelable coverage is secured; $150 fee for first reinstatementSuspension of license and registration until reinstatement fee is paid and non-cancelable coverage is secured; $250 fee for second reinstatement
GeorgiaSuspended registration with $25 lapse fee and $60 reinstatement fee. Pay any other registration fees and vehicle ad valorem taxes dueWithin five years: Suspended registration with $25 lapse fee and $60 reinstatement fee. Pay any other registration fees and vehicle ad valorem taxes due
HawaiiFine: $500 fine or community service granted by judge. Either license suspension for three months or a required nonrefundable insurance policy in force for six monthsFine: $1500 minimum fine within five years; either license suspension for one year or a required non-refundable insurance policy in force for six months
IdahoFine: $75; license suspension until financial proof. No reinstatement fee.Fine: $1000 maximum fine within five years and/or no more than six months in jail; license suspension until financial proof. No reinstatement fee.
IllinoisFine: minimum of $500; License plate suspension until $100 reinstatement fee and insurance proofFine: minimum of $1,000; License plate suspension for four months; $100 reinstatement fee and insurance proof
IndianaLicense/registration suspension for 90 days to one yearWithin three years: license/registration suspension for one year
IowaFine: $500 if in accident; Otherwise, fine: $250; community service in lieu of fine. Possible citation/warning if pulled over plus removal of plates and registration possible when pulled over without insurance and reissued upon payment of fine or completed community service, proof of insurance, and $15 fee; possible impoundment when pulled overN/A
KansasFine: $300 to $1000 and/or confinement in jail up to six months; license/registration suspension; reinstatement fee: $100Fine: $800 to $2500 within three years; license/registration suspension; reinstatement fee: $300 if revoked within previous year, otherwise $100
KentuckyFine: $500 to $1000 fine and/or sentenced up to 90 days in jail; license plates and registration revoked for one year or until proof of insurance is shownWithin five years: 180 days in jail and/or $1000 to $2500; license plates and registration revoked for one year or until proof of insurance is shown
LouisianaFine: $500 to $1000; If in car accident, fine plus registration revoked and driving privileges suspended for 180 daysN/A
MaineFine: $100 to $500; suspension of license and registration until proof of insuranceN/A
MarylandLose license plates and vehicle registration privileges; pay uninsured motorist penalty fees for each lapse of insurance — $150 for the first 30 days, $7 for each day thereafter; Pay a restoration fee of up to $25 for a vehicle's registrationN/A
MassachusettsFine: $500 to $5000 fine and/or imprisonment for one year or lessWithin six years: License/driving privileges suspended for one year
MichiganFine: $200 to $500 fine and/or imprisonment for one year or less; license suspension for 30 days or until proof of insurance; $25 service fee to Secretary of StateN/A
MinnesotaFine: $200 to $1000 (or community service) and/or imprisonment for up to 90 days; License and registration revoked for no more than 12 monthsN/A
MississippiFine: $1000; driving privileges suspended for one year or until proof of insuranceN/A
MissouriFour points against driving record; driver may be supervised; suspended until proof of insurance with $20 reinstatement feeFour points against driving record; driver may be supervised; suspended for 90 days with $200 reinstatement fee
MontanaFine: $250 to $500 fine and/or imprisonment for no more than 10 daysFine: $350 and/or imprisonment for no more than 10 days — within 5 years; license and registration revoked until proof of insurance and payment of reinstatement fees within 90 days
NebraskaLicense and registration suspension; reinstatement fee of $50 for each; proof of insurance to remain on file for three years
NevadaFine: $250 to $1,000 depending on length of lapse; registration suspension — until payment of reinstatement fee and, depending on circumstances, an SR-22 (proof of financial responsibility) if lapsed more than 90 days; reinstatement fee: $250Fine: $500 to $1000 depending on length of lapse; registration suspension — until payment of reinstatement fee and, depending on circumstances, SR-22 (proof of financial responsibility) if lapsed more than 90 days; Reinstatement fee: $500
New HampshireNot a mandatory insurance state. Proof of insurance may be required as the result of a conviction, crash involvement, or administrative action. If you are required to file proof of insurance and vehicles are registered in your name, you will be required to file an Owner’s SR-22 Certificate of Insurance.N/A
New JerseyFine: $300 to $1000; license suspension for one year; pay surcharges for three years in the amount of $250 per yearFine: up to $5000; two-year license suspension; 14-day, mandatory jail term, and an additional mandatory 30 days of community service
New MexicoFine: up to $300 and/or imprisoned for 90 days; license suspensionN/A
New YorkFine: up to $1500 if involved in accident plus $750 civil penalty; license and registration suspension – revoked for one year; suspension of license if without
insurance for 90 days; suspension lasts as long as registration suspension; Suspension of registration: equal to time without insurance or pays $8/day up to thirty days for which financial security was not in effect, $10/day from the thirty-first to the sixtieth day $12/day from the sixtieth to the ninetieth day and proof of security is provided. Or for the same time as the vehicle was operated without insurance.
N/A
North CarolinaFine: $50; registration suspension until proof of financial responsibility but 30-day suspension if in car accident or knowingly driving without insurance; $50 restoration fee plus license plate feeFine: $100 within three years; registration suspension until proof of financial responsibility but 30-day suspension if in car accident or knowingly driving without insurance; $50 restoration fee plus license plate fee
North DakotaFine: up to $1500 and/or 30 days in prison; 14 points against license plus suspension; Proof of insurance must be provided for one year; license with a
notation requiring that person keep proof of liability insurance on file with the department. The fee for this license is $50, and the fee to remove
this notation is $50.
Fine: up to $1500 and/or 30 days in prison; 14 points against license plus suspension; license plates impounded until proof of insurance (provided for one year) plus $20 reinstatement fee; license with a notation requiring that person keep proof of liability insurance on file with the department. The fee for this license is $50 and the fee to remove this notation is $50.
OhioLicense/plates/registration suspension until requirements are met and $100 reinstatement fee is paid; maintain special high-risk coverage on file with the BMV for three to five years; If involved in accident without insurance: all above penalties and a security suspension for two plus years and an indefinite judgment suspension (until all damages are satisfied)License/plates/registration suspension for one year; $300 reinstatement fee; maintain special high-risk coverage on file with the BMV for three or five years; if involved in accident without insurance: all above penalties and a security suspension for two plus years and an indefinite judgment suspension (until all damages are satisfied)
OklahomaFine: $250; jail time up to 30 days; license suspension with $275 reinstatement fee. Police can seize license plates and assign temporary plates and liability insurance — in effect for 10 days and can also impound the vehicle. The cost of the temporary coverage is added to the administrative fee and any fines paid for plates to be returned. If car impounded, owner must also pay towing and storage fees.N/A
OregonFine: $130-$1000 ($260 is the presumptive fine); If involved in accident — at least a one year license suspension; proof of financial responsibility required for three yearsN/A
PennsylvaniaRegistration suspended for three months (unless lapse was for less than 31 days and vehicle not operated during that time); $88 restoration fee plus proof of insurance required to get it back; $500 civil penalty fee is optional in lieu of registration suspension plus $88 restoration fee — can only use this option once within a 12-month periodN/A
Rhode IslandFine: $100 to $500; license and registration suspension up to three months; reinstatement fee: $30 to $50Fine: $500; license and registration suspension up to six months; reinstatement fee: $30 to $50
South CarolinaFine: $100-$200 or 30-day imprisonment; failure to surrender registration and plates when insurance lapses; license/registration suspended until proof of insurance plus $200 reinstatement feeFine: $200 and/or 30-day imprisonment — within 10 years; license/registration suspended until proof of insurance plus $200 reinstatement fee
South DakotaFine: $100 and/or 30 days imprisonment; license suspension for 30 days to one year; filing proof of insurance (SR-22) with the state for three years from date of conviction. Failure to file proof will result in suspension of vehicle registration, license plates, and driver license.N/A
TennesseePay $25 coverage failure fee within 30 days of notice; if not paid, then an additional $100 coverage failure fee with suspension or revocation of registration plus reinstatement fee of no more than $25N/A
TexasFine: $175 to $350 fine; plus, pay up to a $250 surcharge every year for three years (may be reduced with certain requirements)Fine: $350 to $1000; pay up to a $250 surcharge every year for three years (may be reduced with certain requirements); suspend the driver's license and vehicle registrations of the person unless the person files and maintains evidence of financial responsibility with the department until the second anniversary of the date of the subsequent conviction; Impoundment: for 180 days and
cannot apply for release of car without evidence of financial responsibility and impoundment fee of $15/day.
UtahFine: $400; license suspension until proof of insurance (maintained for three years) and $100 reinstatement feeFine: $1000 — with three years; license suspension until proof of insurance (maintained for three years) and $100 reinstatement fee
VermontFine: up to $500; license suspended until proof of insuranceN/A
VirginiaFine: may pay $500 Uninsured Motorists Vehicle fee to drive without insurance at your own risk. If this fee is not paid in lieu of insurance, all driving and vehicle registration privileges will be suspended until a $500 statutory fee is paid, proof of insurance is filed for three years, and a reinstatement fee (if applicable) is paidN/A
WashingtonFine: Up to $250 or moreN/A
West VirginiaFine: $200 to $5000; license suspended for 30 days with reinstatement fees, unless there's proof of insurance and $200 penalty feeFine: $200-$5000 fine and/or 15 days to one year in jail — within five years; license suspended for 90 days and registration revoked until proof of insurance
WisconsinFine: up to $500N/A
WyomingFine: up to $750 fine and up to six months in jailN/A
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What happens if you get caught driving without insurance? And how much is the fine for driving without insurance? What is the penalty for driving a car without insurance? To offer detailed information, we’ve researched potential penalties for every state if you’re caught driving uninsured.

It’s important to note that we have only included penalties for first and second offenses. If you’re found guilty of more than two offenses, you could face penalties that are even more severe.

What is the max fine for driving without insurance? Fines for driving uninsured range anywhere from $75 to $5,000, depending on the offense and where you live. The states with the most expensive fines, up to $5,000, are:

  • Massachusettes
  • New Jersey
  • West Virginia

Twelve out of the 50 U.S. states do not penalize you with fines for driving uninsured. These states include:

  • Alaska
  • Florida (no penalties for driving uninsured in Florida)
  • Georgia (no penalties for driving uninsured in GA)
  • Illinois
  • Indiana
  • Maryland
  • Missouri
  • Nebraska
  • New Hampshire
  • Ohio
  • Pennsylvania
  • Tennessee

Instead of issuing fines for driving uninsured, these states’ punishments include:

  • Points against your driving record
  • Suspension of your license and/or registration
  • Fees for reinstatement of a license or registration
  • Mandatory SR-22 insurance

In Maryland, anyone caught driving uninsured is required to pay uninsured motorist penalty fees for each lapse of insurance: $150 for the first 30 days and then seven dollars for each day afterward.

It’s also worth noting that if you get caught operating a vehicle without insurance in Iowa, you can choose to participate in community service instead of paying the associated fees.

Three Tips on Lessening the Consequences

After reading about the penalties you could face for driving uninsured, you may be wondering what your options are should you ever get caught driving without the proper coverage.

Believe it or not, there are ways to lessen or even have the charges against you for driving without insurance dismissed.

However, this possibility will greatly depend on your state’s traffic code, your local law enforcement policies, and your unique situation. We recommend you seek legal advice.

#1 – Highlight Your Circumstances

Rather than disputing that an offense occurred, you may be able to argue that a specific circumstance existed in your case to excuse or justify the violation.

For instance, if you’re driving without insurance in Texas, you should know that the traffic code exempts vehicles that are possessed solely for purposes of repair from the insurance requirement.

Some states also provide exceptions for vintage cars that are not used for “regular transport.” If your vehicle fits this category, you may be able to lessen your penalties for driving uninsured.

#2 – Be Proactive

If you are caught driving uninsured, you may receive leniency if you seek insurance coverage soon after.

Some states reward drivers who respond to a citation by quickly obtaining auto liability coverage.

Even if your state does not react this way, it’s possible that your local prosecuting office may have adopted this type of policy.

If you can show that you quickly corrected the problem and got the proper coverage, you may be eligible for a dismissal or reduction of fines and other penalties, which can lessen the eventual negative impact on your finances and your current and future insurance rates.

#3 – Mention that You Have the Proper Coverage

If you’ve always had insurance but simply forgot or misplaced your proof of coverage, you may be in luck! Many states and prosecuting offices will dismiss or reduce sentences upon verifying that you did have valid insurance at the time of your citation.

Make the Smart Choice

No matter where you live or what your circumstances are, driving without the required insurance on your car is not a good idea.

Not only can driving uninsured negatively affect you in the present moment with all the possible penalties, but it can also potentially hurt your chances of receiving affordable insurance rates on your car in the future.

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Most States Require Insurance Coverage

All states except Virginia and New Hampshire require that cars have basic liability insurance, and this coverage stays with the vehicle. The individual states set the minimum level that must be maintained, and officers may ask for proof of insurance when you’re pulled over.

Liability insurance is the minimum state requirement, and this coverage is generally very affordable. If you’re going to drive a car that’s been uninsured previously, then shop around for attractive liability rates before taking it out on the road.

Depending on the coverage, insurance can follow the car or the operator. Liability insurance, for example, is assigned to the individual, so it stays with that person even when they drive other eligible cars.

However, comprehensive and collision coverages are assigned to a particular car, so they stay with that car. If the vehicle is loaned out to another covered person, the car itself will still be covered in the event of a collision.

Be aware that some insurance companies are very particular about who is covered. Most plans are automatically extended to other people living in the household.

However, friends and family members who don’t live with you may not be covered. Refer to your individual policy or speak with your agent to find out about that.

The insurance company may also look at why a person was driving your car, whether they had permission, and if the car was a rental or loaner.

With medical payments and bodily injury coverage, the person’s coverage will probably take precedence, but the insurance on the car may kick in if the first plan is not enough.

If you want your coverage to extend to people you loan your car to, then you should specifically look for this option when buying a plan. You can shop around for different companies to find one that will protect you in any type of car while also helping you save money.

Driving Without Insurance Is a Crime

Can I lose my license for driving without insurance? In most states, driving a car without insurance is a crime. You can buy a car without insurance on it, but you can’t drive it.

If you drive a vehicle that is registered but not insured, then you’re driving uninsured and will be subject to harsh penalties.

Driving with an uninsured vehicle can result in different consequences in different states. In states like Oregon, these penalties could include:

  • A fine of up to $427
  • License suspension for up to one year
  • Carrying SR-22 insurance for up to three years

Keep in mind, cars must be insured before they can be registered with the state. In Michigan, for example, no-fault insurance must be purchased before the state will issue a tag. The same requirement is in place for renewing registrations.

A car with expired insurance is likely to also have expired tags, and the police routinely check for plates that are beyond their effective registration dates. Wondering “what happens if I get stopped with no insurance?”

If you’re pulled over and cannot show that the vehicle has insurance, then you could face some serious penalties.

In states like Nevada, your plates must be surrendered if the insurance on the vehicle is canceled, and you cannot drive cars without license plates.

New York takes a more proactive approach and requires insurance companies to notify the state when coverage on a car is dropped, reinstated, or changed.

Protect yourself from tickets and criminal charges by properly insuring any car you drive. You don’t want to find yourself going to court for driving uninsured. Whether you own it or you’re borrowing it from a friend, insist on state minimum liability levels.

Shop around with different companies to find the most attractive rates, and put the insurance card in the glove box in case you’re pulled over by law enforcement.

StatsDetails
Percentage of
Uninsured Motorists (2015)
13%
Highest Percentage
of Uninsured Motorists (2015)
Florida (26.7%)
Lowest Percentage
of Uninsured Motorists (2015)
Maine (4.5%)
Average Annual
Premiums (2016)
Liability: $566.51
Collision: $342.40
Comprehensive: $153.32
Combined: $1062.23
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Maybe you think that because you’re a safe individual, you don’t need auto insurance and you’re tired of paying your premium.

But if you let your policy lapse or stop paying your premium, you will be breaking the law. It is illegal to drive an uninsured car in most states. Not to mention that it could be financially devastating if you’re involved in a collision without coverage.

You could even lose your personal assets if the injured party decides to bring a lawsuit against you. So, if you have no insurance on a vehicle you’re driving, you’re asking for trouble. 

You can compare hundreds of auto insurance quotes all at once by entering your ZIP code into our free tool above.

Let’s dig a little deeper into why it’s not a good idea to drive without car insurance.

Is it illegal to have a car without insurance?

In order to drive legally in most states in the U.S., you must have auto insurance. A good driver can get auto insurance for around $118/month, or $1,416/year.

  • If you live in a state that has a mandatory insurance law, it is illegal to drive any vehicle that you own without insurance.
  • Some states have financial responsibility laws where you have alternatives to buying insurance on your car.
  • Some different alternatives to buying insurance on your vehicle include: depositing cash with the treasurer, purchasing a surety bond secured by property, or applying for a self-insurance certificate.
  • If you’re caught driving uninsured, you can face fines, court fees, license suspension, registration suspension, court-ordered community service, and jail time.
  • In tort states with mandatory insurance laws, you’re required to have liability insurance, whereas, in no-fault states, you’re required to carry Personal Injury Protection.

Can you go to jail with no car insurance? Yes, which is why driving with insurance makes more sense than choosing not to. When you buy a car, you should also be prepared to purchase insurance coverage on your vehicle.

The true cost to own a car includes not just the purchase price of the car and titling fees, but also the cost to maintain the vehicle and the cost to insure it.

Having insurance will provide you with the protection that you need to safeguard your assets and your future wages.

While insurance on your car is a product that you need, it’s not always required under state law.

In most states, it’s the vehicle owner’s responsibility to insure the vehicle by purchasing at least a minimum amount of coverage that’s mandated by state officials.

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Mandatory Insurance Laws

Have you ever wondered why insurance requirements on vehicles change when you move to a new state?

While many assume that insurance laws are written at the federal level, they are enacted by the state. In fact, it’s been this way since the McCarran-Ferguson Act was passed back in 1945.

Since it’s the state legislature’s job to enact laws that protect consumers, the requirements vary from state to state.

The legislature will review and revise state laws when necessary and oversee the state insurance department that protects the interests of policyholders who pay for insurance products to cover motor vehicles.

A majority of states have passed a mandatory or compulsory insurance law requiring coverage on motor vehicles.

If you live in a state where insurance is mandatory on motor vehicles, you must purchase a minimum amount of coverage to drive legally any vehicle that is registered in your name.

There is no other way to comply with a compulsory insurance law than to buy insurance coverage for your vehicle.

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What is a financial responsibility law?

One alternative to mandatory insurance laws is the financial responsibility law. In states with financial responsibility, you must demonstrate your financial ability to pay for losses that you’re negligent for if you’re in a car collision.

One way to show evidence of your ability to pay is to buy liability motor vehicle insurance.

While the most popular way to comply with financial responsibility laws is to buy insurance, you do have other options as well.

Vehicle owners who don’t want to buy insurance coverage should know about the alternative proof filing methods that are available to them.

Here are some of the most popular choices:

  • Making a cash deposit with the Department of Motor Vehicles (typically the minimum deposit is equal to the minimum amount of liability insurance required)
  • Applying for a self-insurance certificate
  • Purchasing a secured surety bond issued by a surety company in the state

What type of insurance is required in states with mandatory insurance laws?

If you do live in a state where you’re required to buy insurance, you should check to see how much insurance is mandatory. The limits and coverage requirements vary from state to state.

The requirements are very much dependent upon the type of insurance system that the state uses.

There are currently two types: tort systems and no-fault systems.

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What type of coverage do you need to carry in tort states?

In tort states, it’s the at-fault driver’s responsibility to pay for the victim’s property and their medical expenses when they are in a crash.

Since you have to compensate the victim for damages, you’re required by law to carry third-party liability insurance.

Some states even require you to carry first-party coverage to pay for your expenses.

Here’s a list of coverage requirements:

  • Bodily Injury Liability – Pays for medical expenses, pain and suffering claims, and loss of wages
  • Property Damage Liability – Pays to repair someone else’s vehicle when you damage it
  • Uninsured Motorist – Pays for your medical expenses and lost wages if you’re hit by someone who doesn’t have insurance (only required in some states)
  • Medical Payments – Pays for reasonable medical expenses you incur after an accident regardless of fault (only required in some states)

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What type of coverage do you need to carry in no-fault states?

In no-fault states, your benefits will pay for your medical expenses incurred after an auto accident. The reason for the first-party benefits is to reduce the state’s reliance on the court system to resolve personal injury claims.

You must carry first-party auto insurance benefits.

Here’s what’s required in most no-fault states:

  • Personal Injury Protection – Pays for your medical expenses, disability income, rehabilitation costs, and other related expenses when you’re injured in an auto accident
  • Property Damage Liability – Pays for damaged property that you don’t own if you cause the accident (no-fault only applies to injury claims)
  • Bodily Injury Liability – In states with a modified no-fault system, you may be required to carry Bodily Injury that helps pay for claims when someone has the right to sue you for their injuries

While it’s not always illegal to drive a car without insurance, it’s never recommended. If you want to protect what you’ve worked so hard to save, you should buy at least a minimum amount of auto insurance.

Financial Responsibility Laws

Financial responsibility laws require automobile owners to carry either liability insurance or bond or cash deposits to pay off the damages in the event of a car collision.

These laws are in place in almost all states to protect everyone from crashes while driving — so whenever there’s any injury to any person, the medical or property damage expenses can be covered.

Minimum Coverage Requirements by State

A few states don’t require motorists to carry insurance coverage but require them to show financial responsibility in some form, such as a surety bond or certificate of self-insurance.

But, in practice, buying insurance coverage is the most viable option. Except for New Hampshire and Virginia, all states mandate the coverage limits for auto owners.

What type of coverage are motorists required to buy?

The type of coverage motorists must buy depends on the tort law followed by a state. In states that follow the traditional fault system, motorists are required to buy, at minimum, liability insurance coverage.

In a tort or at-fault system, insurance companies determine fault — motorists who cause an accident have to settle the damages. This is why liability coverage is mandatory — it helps to pay for third-party damages.

Liability coverage limits in these states vary but are usually stated in this form: 25/50/25. This stands for bodily injury and property damage liability coverage requirements and translates to $25,000 for personal injury expenses of one person with an upper limit of $50,000 per accident and $25,000 for property damage expenses.

Remember that liability coverage only pays for the expenses incurred to cover the injuries and damages of the third party.

In no-fault states, liability for an accident isn’t the responsibility of the at-fault person and each party in a collision turns to their insurer for reimbursements. In such a scenario, auto owners have to buy Personal Injury Protection as well, which is used to cover their damages in a car wreck.

As an auto owner, you have the freedom to buy only the minimum limits stated by law and drive legally without exorbitant premiums. However, most often the mandated limits aren’t enough to cover expenses in a major crash. That’s why it’s recommended to buy higher coverage limits.

You also have the option to buy collision and comprehensive insurance on the vehicle to cover the damages to your car in a car wreck. But it’s not mandatory.

Here’s a list of coverage requirements in all the states from the Insurance Information Institute:

U.S. Auto Insurance Coverage Requirements by State
U.S. StatesType of Insurance Coverage RequiredMinimum Liability Coverage Requirements
AKBI & PD Liab50/100/25
ALBI & PD Liab25/50/25
ARBI & PD Liab, PIP25/50/25
AZBI & PD Liab15/30/10
CABI & PD Liab15/30/5
COBI & PD Liab25/50/15
CTBI & PD Liab, UM, UIM25/50/20
DCBI & PD Liab, UM25/50/10
DEBI & PD Liab, PIP25/50/10
FLPD Liab, PIP10/20/10
GABI & PD Liab25/50/25
HIBI & PD Liab, PIP20/40/10
IABI & PD Liab20/40/15
IDBI & PD Liab25/50/15
ILBI & PD Liab, UM, UIM25/50/20
INBI & PD Liab25/50/25
KSBI & PD Liab, PIP25/50/25
KYBI & PD Liab, PIP, UM, UIM25/50/25
LABI & PD Liab15/30/25
MABI & PD Liab, PIP20/40/5
MDBI & PD Liab, PIP, UM, UIM30/60/15
MEBI & PD Liab, UM, UIM, Medpay50/100/25
MIBI & PD Liab, PIP20/40/10
MNBI & PD Liab, PIP, UM, UIM30/60/10
MOBI & PD Liab, UM25/50/25
MSBI & PD Liab25/50/25
MTBI & PD Liab25/50/20
NCBI & PD Liab, UM, UIM30/60/25
NDBI & PD Liab, PIP, UM, UIM25/50/25
NEBI & PD Liab, UM, UIM25/50/25
NHFR only25/50/25
NJBI & PD Liab, PIP, UM, UIM15/30/5
NMBI & PD Liab25/50/10
NVBI & PD Liab25/50/20
NYBI & PD Liab, PIP, UM, UIM25/50/10
OHBI & PD Liab25/50/25
OKBI & PD Liab25/50/25
ORBI & PD Liab, PIP, UM, UIM25/50/20
PABI & PD Liab, PIP15/30/5
RIBI & PD Liab25/50/25
SCBI & PD Liab, UM, UIM25/50/25
SDBI & PD Liab, UM, UIM25/50/25
TNBI & PD Liab25/50/15
TXBI & PD Liab, PIP30/60/25
UTBI & PD Liab, PIP25/65/15
VABI & PD Liab (9), UM, UIM25/50/20
VTBI & PD Liab, UM, UIM25/50/10
WABI & PD Liab25/50/10
WIBI & PD Liab, UM, Medpay25/50/10
WVBI & PD Liab, UM, UIM25/50/25
WYBI & PD Liab25/50/20
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Some states require motorists to buy uninsured/underinsured motorist coverage, which can be useful when you’re hit by a motorist who’s uninsured or isn’t adequately insured.

Online Verification Systems for Vehicle Insurance

Most states have some form of verification system to check whether motorists carry insurance coverage, and some even verify insurance coverage on vehicles regularly to identify uninsured motorists.

Though you may think that you won’t get caught if you let your policy lapse unless stopped by a law enforcement officer, many states now send notices to motorists if they can’t verify coverage against a vehicle registration.

The following states have laws that require verification of car insurance since 2002:

  • South Carolina – 2002
  • Oklahoma and Wyoming – 2006
  • Louisiana – 2008
  • Montana and Nevada – 2009
  • West Virginia – 2010
  • Alabama – 2011
  • Idaho, Mississippi, and Utah – 2012
  • Connecticut and Tennessee – 2015

To tackle the problems with large database systems, the Insurance Industry Committee on Motor Vehicle Administration (IICMVA) offers access to a service system for easy retrieval of insurance coverage information.

Law enforcement or state DMVs can use an online portal to get real-time details about coverage and vehicle information, while the insurance companies maintain their own database.

What are the SR-22 requirements?

SR-22 insurance or a certificate of financial responsibility is an insurer’s guarantee that a motorist is carrying adequate insurance coverage as required by law. Your insurance carrier is required to file the certificate with your state’s Department of Motor Vehicles.

Who needs an SR-22?

If you drive a car without insurance, you might be required to get SR-22 insurance. There are also other situations in which you can be required to obtain SR-22 insurance, such as:

  • A DUI or DWI offense or any other serious violation
  • Causing a car crash without insurance coverage on your vehicle
  • Repeat traffic law violations
  • License suspensions or revocation

Most states require motorists to maintain an SR-22 on file for three years on the first offense to ensure that you maintain financial responsibility in the near future.

What are the low-cost insurance programs for vehicles?

Though insurance policies on our cars protect us from the possibility of a significant future expenditure as a result of a car crash, it does come with a price tag that isn’t affordable for everyone. If you’re unable to pay the premiums, you can look at the low-cost insurance programs in your state.

So, what about operating without insurance in California? In California, driving uninsured is barred by CVC 16029. It is one of the states offering affordable insurance for motorists.

California’s Low Cost Automobile Insurance Program was established to help eligible, low-income auto owners with coverage to meet the financial responsibility requirements, so there is no reason for driving uninsured in CA.

New Jersey also offers the Special Automobile Insurance Policy (SAIP), or Dollar-A-Day insurance policy, which provides limited coverage to motorists who are eligible for Medicaid with hospitalization.

These New Jersey motorists can get medical coverage after car wrecks up to $250,000 for emergency treatment and a $10,000 death benefit  by paying only $365 per year.

State legislators design low-cost insurance programs to make it easier for motorists to get coverage. Research similar programs in your state if you feel you can’t afford the premiums for full coverage.

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What are the penalties for driving without insurance?

There can be many consequences for not carrying insurance or for letting your policy lapse, one of which is fines and license suspension by the Department of Motor Vehicles.

However, that’s not the only consequence you will face for not having insurance on your vehicle. Others are:

  • Your insurance rates would be raised because you’d be considered “risky.”
  • If you have financed your car, it will likely be repossessed by your lender.
  • If you get involved in a collision, you will have to pay for everything out-of-pocket (you may have to sell your personal assets to meet the expenses).
  • You wouldn’t be eligible for insurance discounts offered to loyal continuous customers.

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How Law Enforcement Deals with Uninsured Drivers

The penalty for not carrying insurance varies from state to state. Some states even suspend your license and require you to serve time in prison.

The severity of your penalty depends on the number of times you’ve been caught driving without an insurance policy. In most states, your  license would be suspended and you would be unable to drive without showing sufficient proof of insurance.

Driving Someone Else’s Car Without Insurance

There’s an inherent risk involved in driving someone else’s car, because some coverage options follow the car while others follow the person. Even if a policy follows the individual, motorists can’t just drive anyone’s vehicle and expect to be reimbursed when they’re involved in a car wreck.

What would help avoid confusion in this matter is to read the inclusions and exclusions in your policy document. You also might want to know how you can report someone who has no insurance.

Liability Coverage: In principle, liability coverage follows the individual, but only if you drive an eligible vehicle. Liability coverage would protect the insured even when the car is owned by someone else. However, you wouldn’t be covered by a policy on your friend’s or neighbor’s car if you aren’t insured on their policy.

The coverage may not follow a motorist if they are driving a vehicle not mentioned in their auto insurance policy.

Comprehensive and Collision Coverage: Since comprehensive and collision insurance covers damages to a car, it usually follows the car. These options pay for any repair or replacement cost for the insured car when it gets damaged from causes listed in the insurance policy.

But if you’re driving a vehicle covered by comprehensive and collision coverage, you may not be covered in the crash if you aren’t listed as the covered individual in the policy.

Family members are often covered, but if someone is driving the car without the owner’s permission, the insurance wouldn’t cover them.

Many insurance policies wouldn’t cover a car or motorist not specifically mentioned in the insurance policy.

Do insurance premiums rise after a lapse in coverage?

A lapse in coverage is defined as any period in which you are without the minimum required insurance on your registered car. There can be many reasons for a lapse in coverage, such as policy cancellation, non-payment of premiums, or intentionally letting your policy lapse.

A lapse in coverage can raise your auto premium cost because it’s illegal to drive without insurance for even a day.

To get an idea of how much rates rise after a lapse, we’ve analyzed rate changes in three states for the same driver profile across different insurance providers. These states are South Carolina, Florida, and California.

StateCoverageGeico Monthly PremiumsGeico 6-Month PremiumsGeico Annual PremiumsRate IncreaseLiberty Mutual
Monthly Premiums
Liberty Mutual
6-Month Premiums
Liberty Mutual
Annual Premiums
Rate IncreaseProgressive
Monthly Premiums
Progressive
6-Month Premiums
Progressive
Annual Premiums
Rate IncreaseFarmers
Monthly Premiums
Farmers
6-Month Premiums
Farmers
Annual Premiums
Rate IncreaseNationwide
Monthly Premiums
Nationwide
6-Month Premiums
Nationwide
Annual
Rate Increase
SCNo Lapse$154.82$928.90$1,857.80$253.42$1,520.52$3,041.04$89.17$535.00$1,070.00Not Available in SC$135.21$811.25$1,622.50
SCAfter Lapse$160.00$960.00$1,920.003.35%No Quote
Offered
No Quote
Offered
No Quote
Offered
No Quote
Offered
$150.50$903.00$1,806.0068.79%No Quote
Offered
No Quote
Offered
No Quote
Offered
No Quote
Offered
CANo Lapse$121.70$730.18$1,460.36$116.00$696.00$1,392.00$147.00$882.00$1,764.00$162.47$974.82$1,949.64$108.53$651.19$1,302.38
CAAfter Lapse$131.15$786.88$1,573.767.77%$135.00$810.00$1,620.0016.38%$150.17$901.00$1,802.002.15%$181.80$1,090.80$2,181.6011.90%$122.75$736.52$1,473.0413.10%
FLNo Lapse$141.12$846.70$1,693.40$312.00$1,872.00$3,744.00$167.17$1,003.00$2,006.00$426.60$2,559.60$5,119.20Not Available in FL
FLAfter Lapse$317.30$1,903.80$3,807.60124.85%No Quote
Offered
No Quote
Offered
No Quote
Offered
No Quote
Offered
$269.67$1,618.00$3,236.0061.32%$456.00$2,736.00$5,472.006.89%
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You can see that rates rise considerably in Florida after a lapse in coverage, but the rates are higher from the base level in the other two states as well.

What if I have a car crash without insurance coverage?

Driving uninsured attracts significant penalties in most states where it’s mandatory to maintain the minimum coverage.

If you get involved in a car collisiont without insurance, you’ll end up paying for the damages you cause, as well as the higher penalties from getting caught without insurance.

Let’s look at the consequences of not carrying insurance in three scenarios.

What are the consequences if you live in a no-fault state?

Twelve states and Puerto Rico follow the no-fault insurance system, which enables auto owners to turn to their own insurance company for reimbursements in the event of a collision irrespective of fault.

By definition, no-fault laws limit the scope of lawsuits against the at-fault party, as each party gets compensation from their insurer.

Only when the expenses exceed the thresholds stated in the law or when there are significant injuries can the at-fault party be sued. For minor fender benders, you will not be required to pay any expenses out of pocket.

But if you’re sued because you don’t have insurance, you would have to pay all the damages out of pocket. And, if the expenses are significant, you’ll have to use your personal assets to make up for the loss.

What about the law in tort states?

States that follow the traditional tort law or the fault system first determine liability or fault in a crash. Whoever is at fault must cover the expenses and damages suffered by the other party.

If you’re involved in a major wreck in a tort state, you will have to pay all medical expenses and property damages out of pocket as an at-fault party.

The injured party may decide to sue you to cover other expenses, such as lost wages, pain and suffering, rehabilitation costs, etc. In the absence of an auto policy, you will have to defend yourself in the court or hire a lawyer, which will cost more.

What if the accident was caused by the other party?

When you’re involved in a car crash caused by the other party, you can claim third-party damages from the insurance company of the at-fault individual. However, there are some limits to what you can recover if you don’t have insurance coverage.

Many states have enacted a rule known as “No Pay, No Play.” Under this rule, uninsured motorists who suffer damages as a result of a wreck aren’t allowed to make claims for pain and suffering or non-economic damages.

Since uninsured motorists are incapable of offering full compensation in car crashes caused by them, they shouldn’t be allowed to receive similar compensation in third-party claims.

StateNo Pay, No Play Law
IndianaUninsured motorists can't receive non-economic damages
MissouriUninsured motorists can't receive non-economic damages unless the at-fault driver was drunk or convicted of 2nd degree assault or involuntary manslaughter
MichiganUninsured motorists who are equally or more than 50 percent responsible for the accident can't receive non-economic damages
CaliforniaDrunk and uninsured drivers can't file lawsuits
LouisianaUninsured motorists have to pay the first $15,000 in medical expenses and $25,000 in property damages out-of-pocket before filing a lawsuit
New JerseyDrunk and uninsured drivers can't file lawsuits
AlaskaUninsured motorists can only sue when the at-fault party was drunk, caused the accident intentionally or fled the scene
North DakotaUninsured motorists are barred from suing if they have a prior violation under the financial responsibility laws
OregonUninsured motorists can only sue when the at-fault party was drunk or caused the accident intentionally or recklessly
KansasUninsured motorists can't receive non-economic damages
IowaMotorists can't collect non-economic damages if the accident happened while committing a crime
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Impact of No Pay, No Play law

California and Michigan were the first states to pass the No Pay, No Play law.

In  2012, the Insurance Research Council (IRC) conducted an analysis to measure the impact of this law on the percentage of uninsured motorists. As anticipated, implementation of the law led to a significant reduction in people driving uninsured.

  • Though modestly, the percentage of uninsured motorists was affected in states when the law was brought into practice.
  • The IRC also developed a model to estimate the non-economic damages paid to uninsured motorists in third-party liability claims for states without the law. These payments could be scrapped if the states adopted the law.
  • Research findings indicate not only a drop in the number of uninsured motorists but a possible reduction in car insurance costs.

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Uninsured Motorists Stats

Uninsured motorists are a nuisance for every state because insurance rates are calculated after taking into consideration the percentage of motorists in the state who don’t have insurance. If the percentage is high, it usually leads to an increase in rates.

Uninsured motorists also make insurance more expensive in a direct way, as purchasing uninsured/underinsured motorist coverage will raise the cost of an auto insurance policy.

Percentage of Uninsured/Underinsured Motorists

In 2015, around 13 percent of motorists were operating motor vehicles without insurance according to a study conducted by the Insurance Research Council. Florida has the highest percentage of uninsured motorists, while Maine has the lowest percentage.

Highest Percentage of Uninsured Motorists by State
RankStatesPercent of Uninsured Drivers
1Florida26.70%
2Mississippi23.7%
3New Mexico20.8%
4Michigan20.3%
5Tennessee20%
6Alabama18.4%
7Washington17.4%
8Indiana16.7%
9Arkansas16.6%
10D.C.15.6%
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Here’s a list of states with the lowest rates of uninsured motorists:

Lowest Percentage of Uninsured Motorists by State
RankStatesPercent of Uninsured Drivers
1Maine4.50%
2New York6.1%
3Massachusetts6.2%
4North Carolina6.5%
5Vermont6.8%
6Nebraska6.8%
7North Dakota6.8%
8Kansas7.2%
9Pennsylvania7.6%
10South Dakota7.7%
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Uninsured/Underinsured Motorist Coverage Claim Payouts Countrywide

Uninsured/underinsured motorist coverage (UM/UIM) protects auto owners from motorists who are uninsured or inadequately insured. When you’re hit by someone without insurance, you can claim reimbursement for damages under the UM/UIM option.

Let’s look at the incurred claims for UM/UIM coverage.

Incurred Claims201520142013
Bodily Injury289,899275,000271,429
Property Damage393,261367,122353,439
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Is there vehicle insurance for undocumented immigrants?

Due to the lack of legal status or residency, undocumented immigrants might choose to drive without insurance, thinking insurance companies wouldn’t offer them coverage.

However, driving without auto insurance can be risky and quite expensive if you’re an undocumented immigrant.

You might be surprised to learn that the District of Columbia and 13 states grant driving rights to undocumented immigrants.

  • From these 13 states, California, Colorado, Connecticut, Hawaii, and Maryland issue driver’s licenses to those without a Social Security number or lawful status if specific documents are shown.
  • Undocumented immigrants can get a limited license in D.C.
  • Washington and New Mexico accept any proof of residence or tax identification number to issue a license.
  • Delaware, Nevada, Utah, and Vermont offer a driver’s privilege card.
  • New York passed a law allowing undocumented immigrants to apply for a driver’s license in 2019.

These states allow undocumented immigrants to show foreign documents such as passports to establish identity so they can be granted the right to drive.

States can help ensure safety by issuing driving privileges to these immigrants, as they would then be able to buy insurance.

Under no circumstances should you drive a car without insurance as an undocumented immigrant, as you risk the chance of deportation along with other penalties.

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What are the benefits of my expenditure on insurance?

Quite understandably, the expenditure of insurance on a vehicle doesn’t come with any immediate benefits apart from allowing you to drive legally. That’s why many motorists let their policies lapse or stop paying premiums: they were never involved in a collision during the policy period.

You can’t predict when or if you will be involved in a car crash, but if you hit someone without insurance coverage, the incident will drain you mentally and financially.

If you can’t afford high insurance premiums, you can consider buying coverage that meets the minimum requirements or research any low-cost insurance programs in your state.

What is the average expenditure on insurance on a car?

You can choose different insurance options to control the cost of your premium. The more options you add, the more your premium will increase. If you increase the limits on your policy, your premium will increase further.

If you have financed your car, your lender may require you to buy collision and comprehensive coverage to protect it from any damages.

You can look at the average expenditure on insurance over the period from 2012-2016 through data provided by the National Association of Insurance Commissioners.

YearAverage ExpenditurePercentage Change
2012$812.402.2%
2013$838.613.2%
2014$865.463.2%
2015$889.092.7%
2016$935.805.3%
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These average numbers are based on data from all consumers across the country. Your premiums can vary significantly from these numbers depending on your personal factors and other considerations.

Vehicle Insurance Rates by Personal Factors

Insurance rates are impacted by many factors, some of which are listed below. You can control some of these personal factors, like improving your driving record or credit history to get better rates.

  • ZIP code
  • Marital status
  • Age
  • Gender
  • Driving record
  • Credit history
  • Type of policy
  • Coverage level
  • Car’s make and model

Age and gender influence rates significantly when you’re new to driving, which is why younger males pay a lot more than their female counterparts. But these factors gradually have less influence on your rates after you turn 25.

In a few states, such as California, Hawaii, Maryland, and, Massachusetts, insurance companies aren’t allowed to use credit scores for the calculation of insurance rates.

The easiest way to control your insurance cost is to choose a policy coverage level within your budget. While you can reduce your costs for now by choosing lower policy limits, it might not be enough to cover the medical expenses or property damages in the event of a major wreck.

Top 10 Most Expensive and Least Expensive States for Vehicle Insurance

As rates depend a lot on where you live, there are some states that charge significantly higher premiums from motorists than others. If you live in one of the most expensive states for auto insurance, you’ll have to shell out a lot of money.

You can see below the average insurance expenditure in the most expensive and least expensive states.

RankMost Expensive StatesAnnual PremiumsRankLeast Expensive StatesAnnual Premiums
1New Jersey $1,309.291Idaho $$599.77
2Louisiana $1,302.112Iowa $628.1
3New York $1,301.643North Dakota $639.1
4Michigan $1,270.704South Dakota $648.01
5Florida $1,259.555Maine $650.38
6D.C.$1,246.806Wyoming $677.53
7Rhode Island $1,193.587Wisconsin $688.32
8Delaware $1,159.868Vermont $691.56
9Massachusetts $1,096.539Indiana $692.29
10Connecticut $1,086.1710North Carolina $699.91
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Only when you cancel your registration and surrender your license plates can you can cancel your insurance. Otherwise, it’s illegal.

Will the dealer ask to see your coverage if you pay cash for the car?

You might assume that it’s the DMV’s responsibility to ask for proof of insurance and not the dealer’s. This is where your assumptions could lead to serious issues with the dealer and with the DMV.

In most states, the dealer will fill out the application to transfer ownership to the buyer. This means that the bill of sale will be submitted to the motor vehicle agency along with the application for tags in the buyer’s name.

One of the benefits of buying a car from a dealership is that they handle the DMV paperwork for you.

As an authorized party that is able to process DMV paperwork, the dealer is obligated to collect certain paperwork to complete the application. Most of the time, the motor vehicle agency wants to see that you have insurance before the tags will be issued.

When the proof needs to accompany the application, the dealer must see the proof before they will give you their keys.

What kind of coverage do you need when you’re financing the car?

If you’re financing the car instead of buying it outright, the requirements are even more strict. Auto loan lenders will let you borrow money to pay for a car as long as the car is well-maintained.

You are given the money in a lump sum in exchange for monthly payments that include principal and interest. The car will be security on your loan if you decide not to pay.

Since the vehicle is used as collateral on your car loan, the finance company will verify that you have the right insurance on your car.

You can’t just carry liability insurance and drive off without any issues. Instead, you need to have full coverage insurance that will pay for physical damage coverage that will help you pay to repair the car after a loss.

If you already have a loan in place, the dealer might not have to get the actual insurance documents from you. When you secure a loan in the finance office, there’s a good chance that you’ll be asked for the documented proof in the office.

No matter what’s required, you will have to sign a document saying that you have full coverage.

Can you choose any deductible when you’re financing your car?

If you’re building a policy right before you leave the dealer, choose the right coverage from the start. It’s only reasonable to try and keep premiums low by selecting a high deductible.

Unfortunately, if you do that, you might not be in compliance with the terms set by the lender for the auto loan.

Lenders want to know that you can afford to pay your car note, maintain the vehicle, have it serviced, and fix repairs when the car is damaged.

Having insurance helps you fix the serious repairs, but if your deductible is too high, you might not be able to file a claim. This is why most companies only accept physical damage deductibles of $500 or less.

Will your existing auto insurance be enough to satisfy the dealer?

If you already own a car, you don’t have to worry about going out and shopping for a new policy right away. You’ll have some automatic coverage that will satisfy your lender’s requirements and your state’s requirements for a short period of time.

The extension won’t last forever, but it’s enough to give you time to shop around after you leave the lot.

In most cases, your automatic coverage will last for 14 to 30 days on the new car after the new car is purchased. This is if it’s an additional car rather than a replacement vehicle.

If it’s a replacement vehicle, the coverage extends to the rest of the insurance term. When you only have liability, you will have full coverage for only four days. You will have deductibles of $500 for both comprehensive and collision for the four-day period.

What happens if you don’t have insurance when the sale is official?

If you don’t own a car or you don’t have insurance in your own name, you need to get insurance while you’re still in the finance office. The dealer will ask to see proof of insurance before you can leave with your keys in hand.

When you don’t have the coverage, you may not get to leave with the car until you get on the phone and purchase a policy.

You can buy auto insurance quickly if you use the internet. One of the fastest ways to get insurance when you’re in a pinch is to use an online rate comparison tool.

You can enter your personal information into the tool, provide the VIN, and select the coverage options that you want.

Can you keep a car without insurance?

For various reasons, you may be wondering if you can keep a car without having insurance. As previously stated, if you intend on driving the car, you are most likely legally required to get insurance coverage on it in accordance with your state laws.

If you intend to keep your vehicle in storage and not drive it for several months, perhaps due to being in the military, taking an extended vacation, or even going to college, you may be tempted to cancel or not renew your insurance policy.

However, prior to taking this step, you should do some research into your state laws. South Carolina and Pennsylvania require that you turn over your car registration and license plate if you give up your insurance.

Can you get a car out of impound without insurance?

Impound lots are typically open 24 hours a day because there’s no telling when a car will be impounded. If you need to get your car back quickly, you should have a checklist of the items that you’ll need.

It’s usually the same from city to city, but in some situations, you’ll need sign-offs that others don’t need. Here are some must-have documents:

  • Proof that you own the vehicle (title or registration)
  • Photo identification proving your identity
  • Proof that you have car insurance on the vehicle
  • Accepted form of payment to pay the fees due

Can a person with a learner’s permit drive my car without insurance?

State law says that all personal vehicles need to be insured. The laws may vary from state to state, but almost everywhere you go, insurance is mandatory and not optional.

There are always exceptions to the rule and the exceptions are currently in New Hampshire and Virginia. Everywhere else, every car that has a valid registration needs valid insurance.

You can’t drive a car without your license unless you have a permit. You also can’t stroll into the DMV and expect to get a learner’s permit whenever you want. Anyone who wants to get a provisional license needs to meet age and training requirements.

When you reach the age of 15 or 16, you can probably start planning to get your permit.

Then you’ll have to pass a written exam about the laws of the road and an eye exam with or without your glasses. After you’re eligible, you’ll have to sign a paper saying you understand your duties as a restricted driver and your permit will be issued.

How do you sell a car without insurance?

Selling a car can be a time-consuming process. Not only do you need to settle on a fair price that will spark interest in serious car buyers, but you also need to make the time to meet with these prospective buyers so that they can inspect the car.

It can pose a serious problem if the car that you’re selling doesn’t have insurance.

Driving a car without insurance can be risky, but it’s also risky to sell a car to someone else when the car doesn’t have live coverage.

While it’s not recommended, there are a few ways that you can go about selling a car without buying insurance on it first.

Here’s what you need to know before you set up appointments or start negotiations.

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What are the dangers of selling a car without insurance?

You might think that you can save time and money by selling your car without buying a basic policy, but there are pitfalls. You need to know the drawbacks so you don’t get yourself into trouble.

Not only might you face some serious fines, but you can also have an uninsured loss that will land you in court.

Here are the dangers:

  • Suspension of your registration can affect the buyer’s ability to transfer the registration in their name without paying extra fees
  • Vehicle impounded if your uninsured car is parked on public property with required fees and insurance before release
  • Citations for driving uninsured if you’re taking the vehicle to be serviced before someone comes to view it
  • An uninsured loss while the prospective buyer is test driving the car
  • Suspension of your driving privilege, which can also pose problems when you buy another vehicle
  • High-risk insurance rates in the future when you buy coverage for a new car

Can you sell a car on the private market when it’s not insured?

If you’re willing to put forth a little effort, you can get the most money when you sell your car on the private market.

When you are selling your car to a private party, it’s important to screen callers thoroughly and protect yourself as a seller by being as upfront as possible.

It’s possible to legally sell your car without insurance on it if you’ve already turned in your plates.

If you still have license plates and an active registration, it’s illegal to sell the car without coverage because you aren’t complying with state law.

Don’t Allow Buyers to Test Drive an Uninsured Car

If you don’t have plates or insurance, make this clear in your listing. It’s best to have proof that you disclosed this to the buyer in writing so that you can protect your interests if the party gets into a crash after the transaction.

No matter how upfront you are, you shouldn’t allow the buyer to test drive the car or drive away from your property without first showing that they have their own insurance.

If the buyer has existing coverage, the liability coverage will automatically follow them while they test drive your car, but their coverage still won’t protect you as the seller if an injured party tries to sue you.

Can you buy a car without insurance?

You don’t need insurance to buy a car, only to drive it. Therefore, in order to buy a car without insurance, simply go through the car buying process as usual, and sign the papers.

But, because dealers in most states will not let you leave the lot without presenting proof of insurance, you must leave the car at the dealership until you can get some.

Even states that don’t require you to get insurance through an insurance company will want you to place a deposit with your local government to cover you in case you’re in a collision.

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How do I report someone without insurance on their car?

Whether you were involved in an accident or are simply doing your civic duty to report someone you know is driving uninsured, there are several options available to you.

You can report the driver to your local police, but that may not change anything.

The police may have more urgent issues to deal with, and unless there is an immediate threat to the safety of the public because of this driver, they may not be able to do anything at all.

A better idea would be to contact the Department of Motor Vehicles in the state that issued the license plate of the vehicle in question.

The DMV representative will be able to provide you with additional information to report the issue. They may even have access to a dynamic database that can check on the status of the person’s insurance coverage.

These are normally updated every few hours, so the information is generally valid. If the DMV determines the individual is not presently insured, they may implement a procedure to suspend or even revoke driving privileges.

When can I drive a car without insurance?

The answer is never…at least not without penalties (see above).

Find the perfect auto insurance policy by comparing rates with our helpful tool.

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Can you get insurance without a license?

You may have to have a license to drive a vehicle, but you don’t have to have a license to own one. If you’re planning to buy a vehicle that you can’t legally drive yourself, it’s important to research your options when it comes to insuring it.

While it is possible to find insurance on your car, it may take some time to find a company with lenient enough underwriting guidelines.

Most preferred carriers will only sell auto insurance to vehicle owners who have a license. However, it is possible to find standard and substandard companies in the industry with quality products.

What happens if you don’t own a car?

It’s not common, but there may come a time where you need insurance but you don’t have a license or a car. This usually happens when your license has been suspended and you need to file an SR-22 to get your license back.

Oftentimes, SR-22 filings are required after an uninsured accident, multiple no-insurance convictions, or DUI convictions.

Insurance carriers must issue and submit your proof of financial responsibility to the DMV. Since you’re not licensed, you can’t be added to a friend or family member’s auto insurance policy. You will need a non-owner’s car insurance policy to get your license.

Not all companies issue these policies to people without a valid license, but many do.

If you can get a car without a license, you should be able to find insurance without a license too. However, it might not be as easy.

Find companies with flexible rules, then compare premiums to find the best deals. Use an online rate comparison tool and you’ll get the instant quotes that you need to make a quick decision.

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What happens if you have no insurance on your car?

Don’t have insurance? You could face fines up to $2,000 and jail time for driving without insurance in the U.S. But you can save now by comparing rates below.

  • Liability insurance is mandatory in most states.
  • If you own a vehicle and you don’t purchase insurance, you’re violating the law when you license your vehicle and when you drive that vehicle on public roads.
  • The penalties for driving without insurance vary by state. Some of the common penalties include fines, suspension of license, suspension of registration, vehicle impoundment and jail time.
  • If you’re involved in a car wreck and you don’t have insurance, a judge could order that your wages be garnished to pay for damages.
  • Having an insurance lapse on your record or an infraction can affect your future insurance rates.

The average consumer spends around $841 per year on their auto insurance coverage. If you’re spending several hundred dollars per year on insurance benefits that you don’t want to use, justifying the expense can be difficult.

Since most states have created mandatory auto insurance legislation, you don’t necessarily have a choice when it comes to whether or not to take on the expense.

If you’re tempted to let go of your insurance to save money, think again. The consequences for driving without insurance can be major.

From the legal repercussions to the economic repercussions, getting caught without insurance on your vehicle can be financially devastating.

Is insurance on your car really mandatory?

Insurance is not usually a product that’s legally required. Home insurance, renters insurance, life insurance, and disability insurance are all things you can choose to purchase.

Insurance on vehicles is an exception to the rule. In a majority of states, you must have insurance on your vehicle or proof of financial responsibility to drive.

Insurance on vehicles is mandatory because it protects third parties.

Since the state can’t monitor your finances and your ability to pay for damages that you cause, the only way to ensure consumer protection is to require insurance on all registered cars.

Are there any states where it’s legal to drive without insurance?

Not all states have mandatory insurance laws. In some states, you can legally drive without insurance if you can furnish acceptable proof of financial responsibility.

It might include a certificate of self-insurance, deposit, or a surety bond filed with the Department of Motor Vehicles.

Only two states allow drivers to drive without auto insurance or other proof of financial responsibility — New Hampshire and Virginia.

If you’d like to drive without insurance in either of these states, you must pay an uninsured motorist vehicle fee.

You’re still obligated to pay for damages that you cause.

What are the legal consequences of driving uninsured?

Getting caught without insurance can be a major headache. Not only do you have to worry about fulfilling the mandatory court appearance requirement, but you also have to worry about how expensive the fines are for being an uninsured motorist and getting cited.

The penalties for driving uninsured vary by state, but here are some of the most common ones:

  • Fines between $100 and $2,000 for a conviction (fees get higher for multiple offenses)
  • Court fees and other administrative costs
  • Suspension of your driver’s license for a specified period
  • Suspension of registration
  • Mandatory community service
  • Time in jail (typically up to six months)
  • Reinstatement fees and an SR-22 requirement for up to three years

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Can you be assessed penalties without being pulled over by law enforcement?

If you think that being a safe driver can help you avoid penalties, think again. In most states, it doesn’t take a citation to get fined or penalized for being uninsured.

That’s because many states have invested in electronic verification systems that check the status of your insurance real-time.

Electronic verification and random verification systems are in place to check to see if cars are insured even when the driver isn’t stopped.

By requiring insurers to prove that a car has insurance, the state is better able to keep up with uninsured drivers. It helps the state collect money and helps keep the rate of uninsured drivers down.

What happens if you don’t have insurance when it is verified?

Every state has its own verification process in place. In states with more advanced systems, insurance coverage is being verified and reported 24 hours a day, seven days a week.

These types of systems check the status of your insurance by using your VIN and by requiring licensed insurance companies to report when a policy is started or canceled.

If there’s a report that a policy has canceled, the state will request that you submit proof of insurance for the days that the lapse has been reported. If you can’t do this, then you’ll be ordered to pay a fine.

You will also be asked to present proof of new insurance. If you’re unable to do this, your registration will be suspended.

Do you pay more for insurance when you’ve been an uninsured motorist?

Insurance companies don’t like to do business with risky drivers. Doing business with a risky driver means that the insurance company is more likely to have to pay for a claim.

That’s why companies charge people with high-risk records more money.

If you’ve been convicted of driving without insurance, you could easily fit into the high-risk category.

The company cannot know if you’ve made a claim in the past because you’ve had a lapse in coverage. So, if you have a lapse, expect to pay more for your insurance in the future.

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Loss of Discounts

Not only will you be a higher risk, but you’ll also lose large discounts for failing to maintain coverage.

Most companies offer both loyalty discounts and prior insurance discounts to people who’ve been with the same carrier for years. These discounts drive rates down significantly.

If you want to price insurance rates, use an online comparison tool and see how much you’ll pay for full coverage or a basic policy.

Be sure to be honest with your answers to get the most accurate quotes. Once you find the right policy, you won’t have to worry about the penalties or other consequences for being uninsured.

When can I drive a car without insurance?

You can’t drive a car without valid insurance unless you live in New Hampshire or Virginia. If you can’t pay your auto insurance, you can compare rates online and save up to $859.

  • To drive legally in most states, you must have valid auto insurance and be able to provide proof at all times.
  • Failure to have at least the state minimum liability insurance could result in expensive consequences.
  • If you’re struggling to pay for your car insurance, you can compare rates with other insurance companies and find a new policy that works for your budget.

It is illegal to drive a car without valid insurance. The only exception applies to residents of New Hampshire and Virginia. Even in those cases, having insurance is essential for financial protection if you ever get into an accident.

What are the insurance laws for cars?

The minimum insurance coverage required always depends on which state you live in. Be sure to check your state’s exact minimum limits.

If you’re moving to a different state, find out what its requirements are.

It’s likely that you’ll need to cancel your current policy before moving and purchase new coverage to reflect the laws of your new state.

As you’re getting quotes on insurance coverage or looking over your current policy, it’s important to know what all those insurance coverage terms actually mean. Reading over your policy may feel like reading an entirely different language.

Liability, uninsured motorist, and PIP are the most common types of insurance that states require every driver to have.

Liability Coverage

Liability covers damages and bodily injury that you cause. This is required in all states (besides New Hampshire and Virginia) and protects both other drivers (and your finances).

Liability will not cover injuries to you or your passengers, and won’t cover the cost to repair your own vehicle. It will be the at-fault driver’s responsibility to cover all costs, whether or not they have the minimum insurance.

You may see liability listed as, for example, 25/50/15. This is a shortened way of letting you know what your liability limits are. They are “limits” because that amount is what your insurance will cover toward damages you cause, per accident.

Anything over the limit will need to be covered out of pocket.

Going back to the above example of 25/50/15, this is what those numbers mean if you cause an accident:

  • $25,000 Bodily Injury for One Person – The insurance will cover hospital bills for injuries inflicted on the other driver.
  • $50,000 Bodily Injury for One or More Persons – This is the total amount the insurance will cover for injuries of the other driver and all their passengers.
  • $15,000 Property Damage – This amount will cover the cost to repair the other driver’s vehicle. It will also go towards any damage caused to buildings, sidewalks, street signs, etc.

Keep in mind that even though your state has a minimum limit required, it may not be enough to cover damages if you ever need to actually use the insurance.

You might want to consider adding more than the minimum for peace of mind. This could pay off in the long-run. If you cause an accident and the cost exceeds your liability limits, you will have a lot of expenses to cover.

Uninsured Motorist & PIP

Along with liability, many states also require uninsured motorist coverage. Though car insurance is required, 12.6 percent of drivers in America still drive without it.

You may not be protected if an uninsured driver hits you even though it’s their financial responsibility to cover it. Your insurance cannot cover the repairs to your vehicle if you only have liability coverage.

In these cases, you have the right to sue the other driver for the funds to cover it. There is no guarantee that this will actually get you the money to have your car fixed. You could potentially be left without a drivable car for months if the hit is bad enough.

Uninsured motorist coverage will help you when the other driver does not have liability insurance. Even without the at-fault driver’s insurance, your insurance company will cover the repair costs and hospital bills up to the limit on your policy.

That means you won’t have to wait for a lawsuit to go through; you will be able to have most repairs paid for right away.

Personal Injury Protection, or PIP, is also required in some states. Even if not required in your state, it’s good coverage to have on hand in case you or your passengers are left with serious injuries after a crash.

PIP will cover expenses toward your medical bills, income replacement for having to miss work, and in extreme cases, funeral expenses.

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Consequences of Driving Without Insurance

Driving without valid car insurance, as well as proof of insurance, can mean expensive fines and other consequences. These consequences include:

  • Ticket from law enforcement
  • Penalties from the state DMV
  • Losing the ability to register your vehicle until coverage is confirmed
  • Suspended license, as well as suspended vehicle registration
  • Vehicle may be impounded until all fees are paid and insurance coverage is purchased
  • Possible insurance rate increase for a lapse in coverage

Getting Affordable Coverage

If you’re an uninsured driver, be sure to purchase a policy right away. If you’re uninsured because you can’t afford coverage, it may be a lot cheaper than you think. Having liability-only insurance doesn’t need to be expensive.

If it’s been too expensive for you, there are some things you can do to lower the cost.

Choose a Higher Deductible

If you’re leasing or financing your vehicle, you are typically required to have full coverage. This means that you also have coverage for collision and comprehensive damages. Collision and comprehensive come with a deductible anywhere from $250 to $1,000.

Switch to a higher deductible so that your monthly rates are lower.

Liability-Only Insurance

If you own your vehicle and currently have collision coverage, you might want to consider dropping it from your policy if your vehicle is older and lower in value. It’s possible that what you’re paying for insurance is far more than your vehicle is worth.

Use your best judgment and decide whether or not you truly need it. The cost of collision and comprehensive coverage can really start to add up if your vehicle isn’t worth fixing in a big accident.

Get Quotes From Different Insurance Companies

Some insurance companies have higher rates than others. Compare rates with other insurance companies to make sure you’re getting the best deal possible.

You may be surprised to find that you can get amazing rates from a great insurance company you can trust.

Insurance quotes are free and take minutes to access.

Vehicle Insurance Discounts

Many insurance companies offer discounts that may apply to you. Though the available discounts vary by company, some of the common ones include:

  • Discounts for having a clean driving record
  • Discounts for students with a “B” average
  • Having theft prevention tools installed on your car
  • Price cut for having more than one vehicle covered in your policy
  • Taking a defensive driving course

Never drive without insurance on your car. It leaves both you and other drivers potentially unprotected from a financial struggle. It can also mean fines and penalties that will cost you far more than insurance in the long run.

If you’re worried about affording coverage, compare with other companies and find rates that will work for you and your family.

Can you drive a car without insurance in your name?

You can legally drive someone else’s car without being on their auto insurance policy. If you own the car, you will need to have insurance coverage to drive legally.

  • Insurance coverage is required if you plan to drive.
  • If you have a vehicle that’s registered in your name, you must buy insurance on it because it’s the law.
  • All cars that have to be registered to be driven on public roads must also be insured without any lapses.
  • If you fail to buy insurance or you let your coverage lapse, you can be penalized in several different ways.
  • If the car is registered to you, the insurance needs to be in your name too or there could be issues.
  • The only time that you can own a car without insurance is when you have it filed non-op through the DMV.

You can’t legally drive an uninsured vehicle and expect not to face some serious consequences.

By law, you’ll have to purchase insurance as soon as you purchase a vehicle. If you don’t have insurance when it’s time to register your vehicle, the process for getting license plates on your vehicle will be delayed and you’ll have to spend even more time in the DMV.

Whenever you’re planning to buy a car, you need to budget for all of the expenses that come with vehicle ownership.

Unfortunately, not everyone knows just how much it costs to own their own car until it’s too late. One way to help save on ownership costs is to find the lowest rates on car insurance.

You don’t want to fall into a predicament where you’ll have to pay penalties for failing to maintain insurance. Here’s what you need to know:

Why do you have to carry insurance on your car?

There are a few reasons why insurance is required by law in most states. Unlike other types of property that you own, a car is a heavy piece of machinery that can seriously hurt someone if it’s not operated safely.

More than 95 percent of households in the United States have a vehicle, and all those vehicles on the road lead to accidents which lead to billions of dollars in damage each year.

All states require vehicle owners to pay for all of the repairs that are needed if they damage someone else’s property. In most states, the driver who causes the accident is also liable for paying for medical bills when there are injuries.

The state can’t always verify that someone has money to pay for all of this out of pocket, and this is why mandatory insurance is standard in all but two states.

What type of insurance do you legally have to carry?

You don’t have to carry full coverage on your car, but you do have to carry at least the mandatory minimums. There’s not one universal coverage requirement that applies to all drivers in the country.

These requirements vary by state and are dictated by the most up-to-date vehicle codes. Most of the time, you’ll have to carry the following coverage:

  • Bodily Injury Liability – pays for third-party medical bills and treatment if you’re liable for an auto accident
  • Property Damage Liability – pays for third-party property repairs and replacement if you’re liable for an auto accident
  • Personal Injury Protection – required in no-fault states where you file a claim with your own carrier to pay for your personal injury expenses

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What happens if you don’t buy insurance on a vehicle that you own?

If you own a car and you make the conscious and risky decision to not insure your vehicle, the chances that you’ll have to face the consequences for trying to get away with driving uninsured are very high.

Just remember that you don’t have to be pulled over to get caught without insurance. The state can see your insurance status real-time.

You have to have insurance on your car as soon as you become the legal owner. That means that you need insurance in your name when you fill out the application to put the car’s registration in your name, whether you buy the car from a dealership or from a private seller.

Some agencies will ask you to show proof of insurance when you register the car and some won’t. If you don’t have continuous coverage from that day on, penalties include:

  • If pulled over, you can be cited for no insurance.
  • If pulled over or parked on a public street, your car could be towed and impounded.
  • You could be ordered to pay a fine or complete mandatory community service.
  • Owners with multiple offenses for being uninsured may face a sentence of up to six months in jail.
  • Your tags will be suspended if no insurance is reported to the DMV.
  • You may be ordered to file an SR-22 for three years if you are convicted.

If you don’t have car insurance, you’re in trouble.

Does your insurance on your car have to be in your own name?

Not only does your insurance have to be reported, it also has to be written in the right name. Your insurance and your registration should be in the same name or the system might make it look as if you don’t have insurance.

Some agencies will accept insurance as long as one of the named insureds is on the registration.

If you let someone buy insurance for you, it could work against you down the line. When insurance is kicked out of a verification system because the names don’t match, the state may perceive this as you not having insurance.

This means that your registration could be suspended, your car could be impounded, and you could be ordered to file an SR-22.

Will insurance companies even let someone else insure your car?

Not just anyone can insure a car. You have to have an insurable interest in the property to insure it. When you’re insuring a vehicle, insurable interest means that you own the car or the car is financed to you.

You would have to be dishonest to put car insurance in your name when your name isn’t on the car’s tags.

You can’t legally drive a car if it doesn’t have insurance. Since your car needs to have insurance in your name, it’s crucial that you buy a policy. You’ll have to get quotes for coverage and then you need to apply for a policy for coverage to take effect.

Not having insurance is never the answer. Are you ready to buy car insurance? Enter your information right here, look at the car insurance rates, and choose the best car insurance company for you.