What Happens if You are Caught Driving Without Car Insurance?
Proof of insurance, or proof of financial responsibility, is required in all 50 states and Washington, D.C. to legally drive a car. If you are caught driving without insurance, you may face the following penalties:
- Fines and penalties for failing to provide proof of insurance
- License suspension
- License reinstatement fees
- Having your car impounded
- SR-22 requirements
- Potential jail time
While a first offence for driving without insurance—or proof of insurance—can result in significant fines, subsequent offences can dramatically increase the severity of the penalties. Aside from legal consequences, if you are involved in a car accident without insurance, you may be sued by the other driver for the damage to their vehicle and any medical bills incurred as a result of the accident.
Penalties for Driving Without Proof of Insurance
Not having auto insurance and being unable to prove it are two separate violations that can result in varying penalties depending on your state. As long as you submit proof of coverage within a certain timeframe, penalties for failing to provide proof of insurance (while you are, in fact, insured) are generally less severe than those for driving uninsured. The officer serving your ticket may specify a timeframe that ranges from 24 hours to a few days.
Penalties vary greatly depending on the number of violations you've committed, the amount of damage you've caused, and the state in which you're driving. The following are the penalties for a first offence of failing to provide proof of insurance during a traffic violation in the four most populous states:
State | Fines | Driving Privilege | Other |
California | $360–$720, penalty assessment fees included | NA | Officer may choose to impound vehicle |
Texas | $925–1750, penalty assessment fees included | NA | NA |
Florida | NA | License and registration will be suspended unless proof of insurance is provided within five days, after which you will have to pay a $150 reinstatement fee | NA |
New York | $150–$1500 | License and registration could be revoked for up to three years if you don't provide proof of insurance within a specified timeframe | Officer may choose to impound vehicle |
Failure to provide proof of insurance, such as an insurance card, declaration page, or insurance binder, will result in minor fines. You'll also have to pay processing or penalty assessment fees, as well as the ticket amount for any traffic violations you may have committed, on top of these fines. If your state has a statewide insurance registry, the officer may be able to confirm your coverage, but you may still face minimum penalties at the officer's discretion.
Penalties for Getting Into an Accident While Uninsured
If you are uninsured or have allowed your insurance to lapse, getting into an accident can be disastrous for both you and the other driver—especially if they do not have uninsured motorist coverage. Repair and medical expenses from a major accident can easily run into the thousands of dollars, and can even exceed $1 million if serious injuries are sustained. Uninsured drivers who injure or kill other motorists may also face significant fines, SR-22 requirements, and prison sentences.
State | Fines | Driving Privilege | Other |
California | $360–$720, penalty assessment fees included | Mandatory one-year suspension, after which you can have your license reinstated if you maintain an SR-22 for three years. | Court may order impoundment of the vehicle; 100% liability for other driver's medical and vehicle expenses if you're at fault. |
Texas | $175–350 plus an annual surcharge of $250 for three years plus any damages for the accident you were in, if you are liable, up to a maximum of $4,000 | Automatic suspension of vehicle registration and license for up to two years. File an SR-22 for three years after the accident. | Vehicle can be impounded for 180 days; cannot apply for release of car without evidence of financial responsibility. $15 fee for every day your vehicle is impounded; 100% liability for other driver's medical and vehicle expenses if you're at fault. Up to one year in jail, depending on severity of accident. |
Florida | $150 reinstatement fee | Suspended license until you have provided proof of insurance. SR-22 may be required depending on severity of accident. | 100% liability for other driver's medical and vehicle expenses if you're at fault. |
New York | $150–1500 and an additional civil penalty fee of $750 | Your license and registration will immediately be revoked for at least one year and up to three years | Court may order the impoundment of vehicle. Potential imprisonment of up to 15 days. |
License Suspension
If you are caught driving without insurance, you may have your license suspended in addition to receiving a ticket. The suspension period can be extended or decreased. It ends in some states once you show proof of insurance or file an SR-22. In others, a court or the DMV can suspend your license for a specified period of time based on state laws.
The circumstances that lead to suspension differ from one state to the next. Some will only revoke your license if you are caught driving without financial responsibility in an accident, whereas others will suspend your license after a traffic violation and require proof of insurance within 24 hours. Reinstating a license can cost hundreds of dollars, on top of any other fines; the total cost could equal the annual premium for an auto insurance policy.
In Massachusetts, for example, if you are caught driving without insurance, your license will be suspended for 60 days. Similarly, your driving privileges in Wisconsin will be suspended until you file an SR-22, proving that you meet the minimum level of required financial responsibility. In California, however, your license will be revoked only if you are caught driving without insurance following an accident, not during a routine traffic stop.
Vehicle Impounded and Loss of Registration
If you are caught driving without insurance, especially if you are in an accident, a court may order that your vehicle be impounded and your license and registration be revoked. Most states will not allow you to drive the vehicle again until you provide valid proof of insurance to your state's DMV, typically an SR-22.
In New Jersey, for example, if you do not provide proof of insurance within 24 hours of being cited, your car may be impounded in addition to having its registration stripped. Additional reinstatement or processing fees will be required to get your car back. Some states may even require that your vehicle be impounded for 30 days, incurring additional costs and inconveniences.
Prison Sentence
Driving while uninsured is a misdemeanor offence in most states, and it can result in a prison sentence. Unless you cause a serious accident, you are unlikely to face jail time for a first offence. Repeat offences, on the other hand, will result in higher fines and harsher punishments, including possible jail time.
If you are caught driving while uninsured, you could face a few days in jail or up to two weeks in prison. However, in some states, such as Michigan, you could be sentenced to up to a year in prison. Additional fines and fees may be imposed in addition to these charges.
Financial Consequences
The legal fines described above are costly penalties imposed by your state's laws. When all fees are factored in, they can range from $150 to $5,000 for your first offence. The cost of an accident while driving uninsured, on the other hand, can be much higher, and may even be enough to force you into debt or bankruptcy.
If you collide with a driver who does not have uninsured motorist insurance, personal injury protection, or collision insurance, your accident could easily cost tens or hundreds of thousands of dollars in repair and hospital bills. If you are found to be at fault, you will be responsible for the majority of those costs. In order to pay their bills, the other driver may sue you and seize any future earnings or savings accounts you may have.
How Each State Deals with Uninsured Drivers
Each state has its own set of penalties and punishments for driving without insurance. Some may be more lenient than others, but no one will allow you to drive without financial responsibility. While there are other ways to demonstrate financial responsibility, the simplest is to obtain insurance coverage from a company.
How to Find the Best Auto Insurance
One out of every seven drivers on the road lacks auto insurance, some because they cannot afford it, and others because they believe the cost outweighs the risk. The financial and legal consequences of driving uninsured, on the other hand, can easily outweigh the annual cost of carrying basic car insurance.
If you drive, we strongly advise you to obtain at least the state's minimum required liability insurance. Here are some pointers to help you find the best auto insurance for your needs.
Know Your Limits
To avoid the penalties described above, you simply need to meet your state's minimum required level of financial responsibility, which is typically $20,000 to $50,000 in liability coverage. Other types of coverage, such as personal injury protection (PIP) or collision and comprehensive insurance, may not be required by your state, but they provide important protection if you can afford it.
If you have a clean driving record, you can find basic liability auto insurance for less than $50 per month in most states.
Shop Around
It's critical to shop around for the best car insurance deals if you want to find low-cost coverage. In most parts of the country, no fewer than ten companies compete for your business, and at least one of them is usually offering a premium that is significantly lower than the national average.
In Utah, for example, we discovered that Geico offers policies for half the price of the state average for a 30-year-old driver. Before selecting a policy, obtain at least three quotes. Most companies allow you to easily obtain quotes online, so getting more shouldn't be a problem.
Affordable Car Insurance For Low-Income Earners
Low-income auto insurance programs are available in at least three states: New Jersey, California, and Hawaii. In New Jersey, the Special Automobile Insurance Policy (SAIP) is available to Medicaid recipients who are hospitalized. In California, you can participate if your household income is less than $60,750 for a family of four.
Anyone receiving direct cash assistance in Hawaii may be eligible for free personal injury and liability insurance from the state. Yearly rates in Hawaii could be free for some drivers, and up to $611 if you live in Los Angeles. Regardless, drivers who purchase insurance through one of these assistance programs will save hundreds of dollars over standard policies.
If You Are an Undocumented Immigrant
If you are in the country without proper documentation, you almost certainly do not have a valid driver's license, making insurance impossible to obtain. If you were caught driving in this situation, you would face not only penalties and fines, but also the possibility of deportation. Fortunately, 12 states and Washington, D.C. have implemented programs to help undocumented immigrants obtain legitimate driver's licenses. The first step in obtaining insurance is to obtain a legitimate card with driving privileges.
Assigned Risk Programs for High Risk Drivers
If you can afford insurance but are considered too risky for insurance companies to cover, you should look into your state's assigned risk program. Each state's program is different, but an assigned risk program is essentially a secondary market for drivers who are too risky to insure due to a history of violations or accidents.
Rather than having a single insurer take on the risk, multiple insurers band together to form a pool that does so collectively. Rates will generally be higher, but you will have insurance and will be able to drive legally.