Despite the fact that nearly every state requires every single driver to be insured, some people still don’t get car insurance for various reasons. However, not having coverage can have serious consequences – not just for those that are uninsured, but other drivers as well.
Penalties for driving uninsured
The penalties for uninsured driving vary state-by-state, but most states acknowledge the problems caused by drivers who don’t get car insurance and have policies in place to punish offenders.
According to Findlaw, the punishment ranges from a $100 fine to a one year driver’s license suspension, depending on the area. In many states, the punishment is graduated. In other words, the punishment increases for each offense, if a driver is found operating an uninsured vehicle more than once.
Some states are also implementing stricter penalties for those who do not get car insurance coverage for their vehicles. One North Carolina county commissioner recently proposed a law that would allow officials to impound vehicles that were determined to be uninsured in an attempt to get their drivers off the road. Other states have already rolled out similar laws.
Under-insured drivers
Being uninsured isn’t the only concern drivers should have. Those who don’t get enough car insurance may also cause potential problems. These drivers are often referred to as underinsured, a term also used to describe a situation where coverage is not enough to pay for the damages from a specific incident. Though some authorities believe having some insurance is better than having none, anything less than the mandated state minimums might trigger a punishment for the driver.
Consequences for other drivers
Those who don’t get car insurance may cause significant problems within their states, leading to expenses that are eventually redistributed to other drivers in the form of higher auto insurance premiums.
In addition to rising premiums, states sometimes lose revenues as well, which ultimately impacts citizens. In recent report, the New York officials noted the state loses about $1 million per year in revenues from the auto registration and licensing industry due to uninsured drivers. Other states experience similar losses, and pass them along to taxpayers.
To protect themselves from drivers with little or no insurance, consumers should be sure to set appropriate insurance limits when choosing their policy. Just because they are one driver has insurance in the event of an accident doesn’t mean that the other driver is as well.