You count on your car to get where you’re going. You should have an auto insurance policy you can count on as well. There are so many options when it comes to car insurance, we know how to put together the right policy for you or every member of your family.
Driving Without Insurance: What are the Potential Costs?
The car you hit
If you are deemed to be at fault and live in a state that requires that party to pay damages, you may be responsible to repair the car you hit. Average auto claims for property damage were $3,231 in 2013, while average collision claims were $3,144.
Even seemingly minor body damage on a car can run much more than expected, especially if more than one car part or system is involved.
You may choose not to repair your own car if it’s cosmetic damage or doesn’t affect its functioning. But if you need to pay a large repair bill to get your vehicle running again, or if you need to purchase another car, you may regret driving without insurance.
If people in your car were injured or only those in the other car, you may be responsible for their medical bills and economic claims. Insurance companies paid an average of $14,207 per economic claim in 2012, which included medical care, lost wages and other out-of-pocket expenses, according to the Insurance Research Council report. Bodily injury claims alone were $10,541 on average in 2012.
Your medical insurance may cover your personal injuries after you pay the deductible and applicable co-payments. But that’s something that would be covered under an auto insurance policy, if you purchased that coverage.
If you are at fault in the accident, the other party may sue you for damages. Without insurance you are on the hook for your legal costs, and possibly for theirs as well.
State motor vehicle/license penalties
State auto insurance requirements help and protect everyone and have various penalties for those caught driving without insurance. Depending on the state, authorities may do one or more of the following: revoke or suspend your license, fine you $75 to $1,500, suspend your car registration, imprison you or impound your car, according to the Consumer Federation of America (PDF), a nonprofit consortium of consumer organizations. If you need to reinstate your license or registration, there will be additional fees.
Getting in a car accident can be extraordinarily expensive, which is why driving without insurance is never a wise decision There are ways to get auto insurance that might cost less than you think. Contact Duda Insurance to find out your auto insurance options.