Driving without Insurance

Most states now require each driver to carry a minimum amount of liability insurance. In the states that don’t require this insurance, they require another form of proof of financial responsibility to show that each driver can cover his or her own liability in the case of an accident. Where insurance is required, driving without insurance will give you a hefty fine and points against your license.

Methods of Proving Financial Responsibility

Some states that require each driver to carry a minimum amount of insurance have no other options, while some states do allow a driver to choose other methods of proving responsibility. These other methods vary by state but can include:

A cash deposit it to the DMV or similar agency (California, for instance, allows this but the deposit must be $35,000)
A surety bond for a specified amount
A Certificate of Deposit
A self-insurance certification (usually for people who have a large number of vehicles)

In every state, drivers are required to demonstrate the ability to pay up to a certain amount to cover their liability if they are involved in a motor vehicle accident. These laws are sometimes called "financial responsibility" laws, because while not all states specifically require that drivers carry liability insurance from an insurance company, all states do require some form of proof of financial responsibility.

When faced with the choice of making a deposit of $35,000 or paying $100 or more per month for liability insurance, for most of us the clear winner is to simply purchase insurance. All vehicles under lien require full coverage insurance as a rule, so that covers a driver’s financial responsibility.

On cars that aren’t covered by a lien the option is to purchase the minimum legal amount of liability coverage.

What Liability Insurance Does

If you’re in an accident and you have only the minimum amount of liability coverage required by your state, then if the accident is deemed to be your fault, your insurance will cover the other driver’s costs. It will not repair or replace your car or cover your costs. If the other driver is at fault, his or her insurance will take care of your financial needs.

Having liability insurance also prevents you from having to pay a fine and possibly losing your driver’s license.

Driving without Proof of Insurance

It’s important to be sure and carry your most recent insurance card in case you need it for the information, or to present to a police officer. If you don’t have this proof, you will be issued a ticket. If you do have valid insurance, when you appear in court for the ticket merely bring proof that you did at the time and the ticket will be dismissed. If you get a ticket and you can’t prove that you had valid insurance, you will have to pay a fine, usually a minimum of $100 but it can be much more than that, and you can lose your license for up to one year.

Have you or someone you know been cited for a traffic violation? If so, contact one of our experienced traffic violation lawyers in your area today!

Got a Traffic Ticket?