Any time you get behind the wheel, all states except New Hampshire require you to have auto insurance. Yet, about one in every seven drivers does not have adequate insurance.
If you’re driving without insurance, you risk facing legal consequences such as fines, penalties, and even jail time. And if you’re found at fault in an accident, you may be required to pay the other party’s medical and vehicle damage expenses out of pocket.
Legal Consequences of Driving Without Insurance
Driving without insurance can land you in severe legal trouble. The severity of the repercussions depends on your jurisdiction and the circumstances of the violation. Here are the most common legal consequences of having no car insurance:
Fines and Penalties
Most states issue a fine for driving without insurance. For instance, if you’re found driving uninsured in Ohio, you’ll pay a $100 fine for the first offense, $300 for a second offense, and $600 for subsequent offenses. In New York, driving without insurance penalties cost up to $1,500, plus $750 to get your license back.
License Suspension
Some states will suspend and not reinstate your driver's license until you pay a fine for driving without insurance and get car insurance coverage. New York, for example, will revoke your driving license and vehicle registration for at least one year upon conviction.
Vehicle Impoundment
States like Texas immediately impound a vehicle if they catch a driver without adequate insurance. Texas laws allow traffic police or city marshals to tow and impound uninsured vehicles.
Jail Time
Yes, driving without insurance can send violators to jail. While most states don’t impose a jail term for first-time offenders, some do. Michigan and Maryland laws allow the imprisonment of first-time offenders for up to one year.
Financial Implications of Driving Uninsured
Beyond legal repercussions, driving without insurance in the U.S. can hit your wallet hard.
Increased Future Premiums
When you discontinue your insurance policy without buying another one, you create a coverage gap, or the period you go without auto insurance. Insurers view drivers with coverage gaps as a higher risk, meaning you’ll pay higher rates.
Personal Liability for Damages
If you cause an accident that damages property and the other party’s vehicle without insurance, you’ll have to shoulder the financial burden of the damages. The average cost of property damage is $6,551. If you don’t have that amount to pay up, you will be sued, putting your home, assets, and savings at risk.
Cost of Legal Defense
Even if you didn’t cause an accident, defending yourself against uninsured driving charges can be expensive. You might want to hire a lawyer to negotiate reduced fines and fight the long-term consequences of the violation. Potential civil lawsuits, legal fees, and court costs can overburden you.
State-Specific Requirements and Penalties
The table below summarizes state-specific driving without insurance penalties.
| State | First Offense Penalty | Subsequent Offenses | Additional Consequences |
|---|---|---|---|
| New York | Fine up to $1,500 Possible 15-day jail term 1-year license suspension | Similar penalties Potential increased fines Longer revocation period | $750 paid to Department of Motor Vehicles to reinstate driving license |
| Texas | Fine up to $350 SR-22 requirement | Fine up to $1,000 Vehicle impoundment Continued SR-22 requirement | SR-22 required for two years |
| California | From $100 to over $1,000 fine Vehicle impoundment License suspension for up to four years | Higher fines Potential vehicle impoundment Extended license suspension | Increase in insurance premiums upon reinstatement |
| Florida | Immediate license suspension $150 reinstatement fee | $250 -$500 reinstatement fee Potential vehicle registration suspension | Proof of insurance is required for license and vehicle registration reinstatement |
| Illinois | Up to $1,000 fine SR-22 required for 3 years | Higher fine Possible license suspension Continued SR-22 required | Registration suspension Proof of insurance is required for reinstatement |
What To Do If You’re Caught Driving Uninsured
If you can’t show proof of insurance when the police pull you over, they’ll assume you aren’t insured or lack proper coverage. Depending on your state, the officer may issue a ticket or impound your vehicle on the spot. Then, based on your jurisdiction, you’ll follow the following steps:
- Court summons or fine payment: Most states will let you pay a fine immediately. Others, like Georgia, require you to appear in court.
- License and registration suspension: Your state will likely suspend your driver’s license, vehicle registration, or both until you provide proof of valid insurance. Some states impose a mandatory suspension period even if you obtain coverage.
- Reinstatement of driving privilege: To lift your suspension, you may need to pay reinstatement fees, show proof of valid insurance, and serve any suspension period the state imposes.
Long-Term Repercussions of Driving Without Insurance
Besides the obvious consequences of driving without insurance, the long-term effects can be even more costly.
Impact on Driving Record
A conviction for driving uninsured stays on your driving record for several years, depending on your state. Such a record can lead to:
- Higher insurance premiums
- Difficulty in obtaining coverage
- Potential license suspension for repeat offenses
- Reduced eligibility for jobs that require a clean driving record
Credit Score Implications
Driving without insurance violations doesn’t directly impact your credit score. However, its financial consequences can. Unpaid fines, reinstatement fees, and increased insurance costs can lead to financial strain or missed payments. What’s more, if you cause an accident while driving uninsured, you may face lawsuits or collection actions for damages that can impact your credit score.
Stay Covered at the Best Rates
You should be able to get auto insurance even if you have been driving without it. While some insurers may refuse to cover you and your premiums may be higher, you can find the right coverage by narrowing down your search based on your zip code and driver profile. Compare car insurance quotes from different insurers for the same level of coverage today with EverQuote.