Even if you have personal car insurance, don’t get caught driving an uninsured car. You’ll incur penalties, potentially face legal ramifications, and might even have your vehicle impounded. Fines and penalties can get expensive quickly, so consider getting at least the minimum amount of auto insurance you can afford.
Do Drivers in America Need Car Insurance?
All 50 states, including Washington D.C., require either proof of car insurance or the financial ability to pay for damages or bodily injury resulting from an at-fault accident.
Every state but New Hampshire and Virginia requires drivers to at least carry liability car insurance. While coverage amounts vary by state, the general rule of thumb is 25/50/25, which includes:
- Bodily injury liability limit per person: $25,000
- Bodily injury liability limit per accident: $50,000
- Property damage liability limit per accident: $25,000
Consider adding additional coverage for more protection, including:
- Collision coverage: Collision coverage helps pay for damage to your car from an at-fault accident.
- Comprehensive coverage: Comprehensive coverage pays for damage to your car from something other than a collision, such as falling rocks or tree branches, a fire, flooding, or vandalism.
What Happens If You’re Caught Without Car Insurance?
Penalties vary by state, but you will face ramifications if you drive and get caught without auto insurance. According to ValuePenguin, penalties might include:
- A fine
- Points on your license
- The suspension of your driver’s license
- Surrendering your plates and/or registration
- Possible jail time
- Having your car impounded
- Court and reinstatement fees
You might also need to file an SR-22 form with the court. According to NerdWallet, an SR-22 form shows the state you have the financial ability to pay for damages or bodily injury incurred from an accident. If you have an SR-22 form, expect your auto insurance rates to increase, as you’re perceived to be a high-risk driver.
Which States Have the Strictest Penalties for Driving Without Car Insurance?
California
California imposes the following penalties when driving without car insurance:
- A fine of $100 to $200 plus extra assessments for a first offense.
- Possible car impoundment.
- A fine of $200 to $500 plus assessments if you’re caught again after three years.
- 30 days in jail with a possible $750 fine and the loss of your license for showing fake proof of insurance.
Florida
According to the Insurance Information Institute, 26.7 percent of drivers in Florida don’t have car insurance, the highest percentage in the United States. If you’re caught driving without auto insurance in Florida, expect these penalties:
- Suspension of your license plates and registration for up to three years. If you can show proof of insurance during that time, the state might rescind the suspension.
- A reinstatement fee of $150 to $500.
New York
New York has strict penalties for driving without car insurance or letting someone else drive an uninsured vehicle you own. Penalties for driving an uninsured car include:
- 15 days in jail or a fine up to $1,500.
- Revocation of your license and registration for a year or more.
- A $750 reinstatement fee.
- An $8 to $12 daily insurance lapse fee.
Texas
Expect strict penalties if you get caught driving without insurance in Texas, including:
- A fine of up to $350, court costs, and extra fees for a first-time offense.
- A surcharge of $250 per year to the DMV.
- Up to $1,000 plus a $250 DMV surcharge for a second offense.
- You might get the DMV surcharge reduced to $125 per year if you can show proof of insurance and prepay six months of that insurance policy.
Give us a call if you need additional information, resources, or guidance on car insurance.