Driving Without Insurance: Avoid Lapses in Coverage for Lower Rates

When you are driving without car insurance, you are violating state laws in most states. These laws exist for several reasons — to protect other drivers on the road and ensure that you are financially responsible for any damages you may cause. 

So what happens if you are caught driving without insurance? In this article, we’ll look at the possible penalties you may face if found driving without insurance and tips to help ensure you always have insurance on your vehicle.

Consequences of Driving Without Insurance

According to the Insurance Information Institute (III), about 12.6% of drivers in the U.S. are uninsured. The number translates to about one in every eight drivers on the road. 

This is not only against the law but also incredibly dangerous. Uninsured drivers are more likely to cause accidents and less likely to be able to pay for damages caused. Driving without insurance can result in penalties. 

Read more:

• Can my car be impounded for not having insurance?
• Is it illegal to own a vehicle without insurance?
• How do you test drive a car without insurance?

Legal Consequences

Legal consequences depend on your state’s laws and the details of your situation. However, some of the potential penalties may include the following:

Fines

The amount of the fine can vary depending on your state’s laws. For instance, the maximum penalty for driving without insurance in Washington is up to $550. Depending on where you live, you may also have to pay a civil penalty and a fine.

Learn what is the penalty for driving without insurance in Washington? 

License Suspension or Revocation

Some states may suspend your driver’s license for a certain period as a penalty for driving without insurance. The duration of the suspension or revocation may vary based on several factors, including whether you have prior violations and whether any accidents occurred.

Jail Time

You may also face jail time if your case goes to court. The exact penalty will depend on the state’s laws. Driving without a license is a misdemeanor offense in most states. Therefore, even if you are not arrested, the police may still file a case against you in court.

Vehicle Impoundment

If you drive without insurance, the police can impound your vehicle and charge you a substantial fee to get it back. The actual amount varies depending on the specific situation and where you live, but it can be significant. For example, you may face a $2000 fee for impounding your vehicle in Chicago. (For more information, read our “Can you get your car out of impound without having insurance?“).

Community Service

You may sometimes be required to complete community service as a penalty for driving without insurance. But, again, the exact requirements will depend on your state.

Demerit Points

Some states also assign demerit points to your driving record. Demerit points can result in higher insurance premiums, suspension of your driving privileges, and even a court hearing.

Financial Consequences

In many cases, driving without insurance can also have financial consequences. Some common financial penalties that you may face include the following:

Higher Insurance Rates for Several Years After Your Offense

Depending on your violation’s severity, your insurance company may increase your rates for several years after the offense. For example, if you are found at fault in an accident, your rates may increase dramatically over several years.

Repair Bills

If you have an accident while driving without insurance, you will be liable for any repair bills that result from the accident. You may also be liable if the accident injures other drivers or passengers.

Medical Bills

According to the Insurance Information Institute, one driver with no car insurance is involved in an accident every 18 minutes. In such an accident, you may be responsible for paying for any medical bills resulting from the accident. The average cost of an accident-related hospital stay is over $15,000.

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Examples of State Penalties for Driving Without Insurance

Here are a few examples of state-specific penalties for driving without insurance:

Driving Without Car Insurance: 1st Offense Penalties by State

State	Penalty
Alabama	Fine: Up to $500; registration suspension with $200 reinstatement fee
Alaska	License suspension for 90 days
Arizona	Fine: $500 (or more); license/registration/license plate suspension for three months
Arkansas	Fine: $50 to $250; suspended registration/no plates until proof of coverage plus $20 reinstatement fee; court may order impoundment
California	Fine: $100-$200 plus penalty assessments. Court may order impoundment
Colorado	Fine: $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
Connecticut	Fine: $100-$1000; suspended registration/license for one month (show proof of insurance) with $175 reinstatement fee
Delaware	Fine: $1500 minimum fine; license/privilege suspension for six months
Florida	Suspension of license and registration until reinstatement fee is paid and non-cancelable coverage is secured; $150 fee for first reinstatement
Georgia	Suspended registration with $25 lapse fee and $60 reinstatement fee. Pay any other registration fees and vehicle ad valorem taxes due
Hawaii	Fine: $500 fine or community service granted by judge. Either license suspension for three months or a required nonrefundable insurance policy in force for six months
Idaho	Fine: $75; license suspension until financial proof. No reinstatement fee.
Illinois	Fine: minimum of $500; License plate suspension until $100 reinstatement fee and insurance proof
Indiana	License/registration suspension for 90 days to one year
Iowa	Fine: $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 over
Kansas	Fine: $300 to $1000 and/or confinement in jail up to six months; license/registration suspension; reinstatement fee: $100
Kentucky	Fine: $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 shown
Louisiana	Fine: $500 to $1000; If in car accident, fine plus registration revoked and driving privileges suspended for 180 days
Maine	Fine: $100 to $500; suspension of license and registration until proof of insurance
Maryland	Lose 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 registration
Massachusetts	Fine: $500 to $5000 fine and/or imprisonment for one year or less
Michigan	Fine: $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 State
Minnesota	Fine: $200 to $1000 (or community service) and/or imprisonment for up to 90 days; License and registration revoked for no more than 12 months
Mississippi	Fine: $1000; driving privileges suspended for one year or until proof of insurance
Missouri	Four points against driving record; driver may be supervised; suspended until proof of insurance with $20 reinstatement fee
Montana	Fine: $250 to $500 fine and/or imprisonment for no more than 10 days
Nebraska	License and registration suspension; reinstatement fee of $50 for each; proof of insurance to remain on file for three years
Nevada	Fine: $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 responsiblity) if lapsed more than 90 days; reinstatement fee: $250
New Hampshire	Not 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.
New Jersey	Fine: $300 to $1000; license suspension for one year; pay surcharges for three years in the amount of $250 per year
New Mexico	Fine: up to $300 and/or imprisoned for 90 days; license suspension
New York	Fine: 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.
North Carolina	Fine: $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 fee
North Dakota	Fine: 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.
Ohio	License/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)
Oklahoma	Fine: $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.
Oregon	Fine: $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 years
Pennsylvania	Registration 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 period
Rhode Island	Fine: $100 to $500; license and registration suspension up to three months; reinstatement fee: $30 to $50
South Carolina	Fine: $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 fee
South Dakota	Fine: $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.
Tennessee	Pay $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 $25
Texas	Fine: $175 to $350 fine; plus, pay up to a $250 surcharge every year for three years (may be reduced with certain requirements)
Utah	Fine: $400; license suspension until proof of insurance (maintained for three years) and $100 reinstatement fee
Vermont	Fine: up to $500; license suspended until proof of insurance
Virginia	Fine: 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 paid
Washington	Fine: Up to $250 or more
West Virginia	Fine: $200 to $5000; license suspended for 30 days with reinstatement fees, unless there's proof of insurance and $200 penalty fee
Wisconsin	Fine: up to $500
Wyoming	Fine: up to $750 fine and up to six months in jail

Driving without insurance is not only against the law but also incredibly risky. So ensure that you are always covered by carrying adequate car insurance, and be aware of the consequences if caught driving without it.

How do police know if a car is uninsured?

There are several ways that police can determine if a car is uninsured. These may include:

• Electronic databases. When an officer runs your license plate number, it will bring up a record of your insurance status. The database will flag your car as uninsured if your insurance has lapsed or if you’ve never had insurance.
• Using an automated license plate reader (ALPR). Many police departments have installed ALPR cameras, which can scan and record the license plate numbers of passing cars. The system will flag it as uninsured if a car’s insurance status isn’t current.
• Spot checks by police officers. Police officers may pull over cars at random and ask for proof of insurance. They will likely flag your car as uninsured if you cannot provide proof.

What happens if you get in an accident without insurance?

Let’s look at the potential consequences you may face if you’re involved in an accident without insurance.

If the Accident Was Your Fault

You may face legal consequences if you are found to be at fault in an accident without insurance. The exact penalties will depend on the laws of your state, but they may include fines, jail time, or vehicle impoundment.

If the Accident Was Not Your Fault

If you are involved in an accident that is not your fault and do not have insurance, you may still be liable for any medical or property damage costs incurred by the other party. You may also be responsible for covering your medical bills if you are injured in the accident.

If You Live in a No-Fault State

If you live in a no-fault state, such as New York or Florida, you will typically not be held liable for any damages, regardless of whether or not you have insurance. However, depending on your state’s laws, you may still be required to pay for your own medical bills.

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Minimum Car Insurance Requirements by State

The minimum auto insurance requirements by state vary, but most states require drivers to carry at least liability insurance. Liability insurance covers damage to other people or property if you’re at fault in an accident. It doesn’t cover damage to your car or injuries to yourself or your passengers.

Most states set their minimum liability coverage limits fairly low, so it’s important to ensure you have enough coverage. 

For example, California requires drivers to carry liability insurance with limits of $15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000 for property damage. 

But if you get into an accident and the other driver sues you, a jury could award them much more than that if they find you at fault. That’s why carrying liability limits higher than your state’s minimum requirements is a good idea.

Some states also require drivers to carry uninsured/underinsured motorist coverage. This protects you if you’re in an accident caused by a driver who doesn’t have any insurance or doesn’t have enough insurance to cover the damages they caused. 

Uninsured motorist coverage is especially important in states with low liability limits because it can help fill in the gaps if you’re involved in an accident with an underinsured driver.

Car Insurance Liability Requirements by State

Whether you live in a no-fault state or not, it’s always a good idea to carry at least the minimum level of car insurance required by your state. This will help ensure that you are covered in case of an accident, and it can also help protect you from liability if the other driver sues you.

What happens if you let your car insurance lapse?

If you let your auto insurance lapse, there are several potential consequences that you could face. One of the most serious is that your car insurance company may cancel your policy, leaving you without coverage in the event of an accident. 

In some states, failing to maintain continuous auto insurance coverage is considered a violation of your car insurance policy, which can result in fines or even jail time.

In addition to these potential penalties, it’s important to note that many auto loans and leasing agreements require you to maintain continuous auto insurance coverage.

How to Find the Best Car Insurance

When looking for auto insurance, it’s important to shop around and compare quotes from multiple companies to find the best rates and coverage options. Here are some tips for getting the most out of your car insurance search:

Determine How Much Coverage You Need

Your state’s minimum insurance requirements may not be enough to protect you and your assets fully. Consider increasing your limits or adding other types of coverage, such as collision, comprehensive, and uninsured/underinsured motorist coverage.

Compare Quotes From Different Insurance Companies

Comparing quotes can help you find the best prices and coverage options for your budget and needs. You can typically get quotes from multiple companies online or call up a few companies directly to get quotes.

To learn more about shopping around for car insurance, check out our article Should you shop around for car insurance?

Look for Discounts and Other Incentives

Many insurance companies offer discounts or other benefits to attract new customers, so it’s worth checking to see if you qualify for any of these. For instance, some companies may offer a discount if you bundle your auto insurance policy with another type of coverage, such as homeowners insurance.

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Tips to Avoid Penalties for Driving Without Insurance

Ensure you always have the required coverage to avoid penalties for driving without insurance. Here are some tips for staying covered:

Make Your Insurance Payments on Time

Missing a payment or two can put you at risk of having your policy canceled, making it illegal for you to drive without insurance.

Check Your State’s Auto Insurance Requirements

Make sure you carry the minimum liability coverage required by your state.

Keep Your Insurance Card in Your Car at All Times

It will help you prove that you have insurance if you are pulled over or involved in an accident.

Cancel Your Old Insurance at Appropriate Time

If you are switching insurance companies, cancel your old policy once you have coverage through the new company. Otherwise, you could be at risk of being uninsured without realizing it.

Final Thoughts on Driving Without Insurance

Depending on your state, penalties for driving without insurance can range from a slap on the wrist to some serious jail time. 

If you’re caught without insurance and get into an accident, you could be looking at sky-high rates when you finally get coverage — if you can get coverage at all. So it pays to make sure you have the minimum required auto insurance for your state. 

You should also try to find the best possible rate by shopping around and comparing quotes from different insurers. And lastly, avoid any penalties for driving without insurance by ensuring you keep your policy active and up-to-date.

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