To fully understand the importance of getting your car insured, you should think about what would happen if you got into an accident without insurance. The first thing that should pop into your mind is that most states out there have a law where not having car insurance is actually illegal. You are literally breaking the law every time you drive down the road without insurance in one of these states. Having some extra money in your pocket every month may seem like a good idea at first, but the reality is that you are taking a lot of unnecessary risks by not purchasing coverage through an auto insurance company. Here are some of the details of what would happen if you got in an accident and you were not covered by insurance.
You Will Be Fined
The first thing that will happen if you get in an accident in a state where auto insurance is required by law is that you will be hit with a fine as high as $5,000. This has nothing to do with the damages to the cars involved in the accident. This is obviously a horrible way to start looking for a financial solution after an accident. It should be mentioned that you will probably be covered by someone else’s insurance if you are driving their car instead of your own, but this is not a case that applies to every situation. The good news is that you will not have much else to worry about if the accident was not your fault. You can still collect money from the other person’s insurance if they were at fault for the auto accident. If the other person is not insured, then you will probably be forced to sue them for the damages caused to your car. It’s important to point out here that there are some states where emotional damage cannot be part of the court case if you are not insured yourself. This is the case in about 20 states around the country.
What if You Were at Fault?
If the accident was your fault and you were not insured, then you could be looking at a seriously troublesome situation. The law is definitely in favor of the other person in this kind of situation, and they will be able to seize a large number of different assets from you if you are not able to repair their car damage. They will even be rewarded a portion of your paycheck on a regular basis until they have collected the full amount owed if you do not have any savings or assets. Even if you are able to repair all of the other person’s damages for them, you still will not be able to get your own insurance very easily in the future if you’ve suddenly had a change of heart. You will be placed in a pool of high-risk drivers, which means you will have to pay much more than other people for your insurance.
Not Having Insurance is Like a Ticking Time Bomb
The moral of this story is that driving without insurance is basically like driving around with a ticking time bomb in the trunk. Although skipping out on auto insurance payments will be pretty awesome for the first few months, or even the first few years, the reality is that you will eventually find yourself in a horrible situation. You are pressing your luck every time you drive without insurance, and this is a gamble that definitely won’t pay off in the long run. There are plenty of stories of people who did not pay for car insurance while they were down on their luck and did not have a solid source of income, but these people are the exception and not the rule. If you want to avoid a financial debacle in your future, then you need to make sure that you are insured whenever you get out on the road. You could probably get away with driving without car insurance for a short period of time, but this decision will almost certainly turn into a catastrophically bad choice if you test the waters for too long.