Driving without car insurance is an offense. The penalties for this will vary from state to state. Your punishment can include seizing of your vehicle tag and your car could be impounded labeling you as a driver with intent to drive as an uninsured motorist. There could be fines in some states for driving without car insurance. The penalty for driving without insurance can vary from $150 to $500.
Added to that if you get involved in an accident while you are driving without insurance, you could be caught up in a chaotic turmoil. The consequences may be more serious. You will have to comply with the financial responsibility laws requiring filing of SR22 and also pay personally for the injuries or damages resulting from the accident.
The situations are complex and the procedures depend on the laws of each state where the accident happened. If the other driver is found to be at fault you may receive compensation from the other driver’s insurance company. But it may be denied if holding auto insurance is mandatory in that state. The insurance company will definitely probe this aspect and it may not pay. You may also be charged with driving a vehicle without insurance. When you are injured in this situation and get no compensation from the insurer, your only option is to approach the state if they have the uninsured motorist fund. But they expect you to repay the amount.
When you are not at fault and the other driver will get the loss compensated by his own auto insurance company. The other driver’s insurance company may even pay partly for covering your repairs but you may have to meet a huge out of pocket expense. If you do not pay up you will have to face a court case which is time consuming and expensive. In the worst case scenario, you may even get your license suspended for a year or more for being an irresponsible driver who drives without insurance.
At the accident scene, after the initial chaos has settled down you need to do some important things. According to most of the states’ laws you are required to report the accident to the DMV within 10 days of the accident. The DMV will impose a fine on you and may also revoke your vehicle tag.
To get out of your clumsy situation of being caught driving without insurance,, you need to file SR22 with the state DMV for ensuring future financial responsibility by showing proof of your obtaining auto insurance. The SR22 is a form that proves that you now meet the requirements of the state’s financial responsibility as determined by the state. Not many insurance companies will be interested in insuring you but you can find the insurer who will cover you after an accident. The premium rates for this insurance cover will be far greater than the normal rates. It can even be double or triple of the actual rate. This rate will stay for the duration for which your SR22 will be in force. After completion of this period when you no longer need the SR22, you can obtain a new auto insurance policy if you maintain a clean driving record.
To avoid going through all these stressful and intimidating circumstances, you must carry the right level of auto insurance and be extra careful while driving in future.