What are the costs of not having auto insurance?
The costs of not having auto insurance can be financially devastating — not just to you but also to another driver that you hit with your car. Without insurance, you can't provide financial assistance to anyone that you hurt in an accident, and you could be sued. The costs of not having auto insurance vary from state to state; however, you could face pay high fines, lose your license, have your registration suspended, or even be sentenced to serve time in jail.
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Written by
Chelsey Tucker
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Reviewed by
Daniel Walker
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UPDATED: Feb 10, 2022
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- Most states require you to have auto insurance if you want to drive a car
- You can face fines and even jail time for driving without insurance
- You can shop for affordable insurance online
Drivers who wonder, What are the costs of not having auto insurance?, need to know that the consequences of driving without insurance can actually be quite severe.
Almost every state requires drivers to have an active auto insurance policy. What happens if you drive without insurance and get pulled over will vary from state to state, you could be fined, lose your license, have your registration suspended, or even spend some time in jail.
In order to avoid ending up in any of these unfortunate circumstances, you should shop online to find an affordable policy that also provides the coverage that you need.
The costs of not having auto insurance far outweigh the fees involved in purchasing auto insurance when you need it. Enter your ZIP code so that you can begin comparing free quotes.
Table of Contents
What happens if you get caught driving without insurance?
According to the New York DMV, if you are caught driving without insurance, you could end up having to pay a $750-$1,500 fine and you could lose your license and vehicle registration for up to a year. In addition, If you fail to meet the insurance standards established in the state of Florida, according to Florida Highway Safety and Motor Vehicles, you could be charged with fines of up to $500.
You must also remember that insurance companies review your motor vehicle record (MVR) whenever you attempt to purchase insurance rates. And if you are caught driving without insurance, the next insurance company you apply to will be aware of it. This can cause a hike in your insurance rates and means that you can end up paying for driving without insurance long after the offending incident.
As you can see, it can be severely detrimental to your bank account to drive without insurance, and it is much more cost-effective to purchase a policy before driving on the road.
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How much does auto insurance cost?
Car insurance rates differ per person for a variety of reasons. Below you can see how rates will change based on the coverage that you select:
Average Monthly Liability Auto Insurance Rates by Company and Coverage Level
| Companies | State Minimum Liability Rates | 50/100/50 BI-PD Liability Rates | 100/300/100 BI-PD Liability Rates |
|---|---|---|---|
| Allstate | $67 | $76 | $84 |
| Farmers | $52 | $60 | $67 |
| GEICO | $40 | $49 | $57 |
| Liberty Mutual | $53 | $59 | $67 |
| Nationwide | $59 | $61 | $69 |
| Progressive | $57 | $64 | $73 |
| State Farm | $44 | $52 | $59 |
| USAA | $33 | $37 | $42 |
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The amount of coverage you choose isn’t the only deciding factor in your rate calculation. In order to determine how much you will pay for your insurance, auto insurance companies need to gather a significant amount of information to use in what is known as the underwriting process. This process enables them to perform mathematical calculations and statistics that can ascertain if you are a high- or low-risk driver.
If you want to take control of your future, you should understand the specifications that interest an insurance company, so that you can be prepared when you begin shopping for insurance.
Factors that Affect Auto Insurance Rates
When you apply for an insurance quote online, you’ll need to be ready to supply this information:
- Your age
- Your full name
- Your birthdate
- Your car’s make and model
- Your car’s age
- Your car’s mileage
- Your driver’s license number
Once an insurance company has acquired this information, it will proceed with conducting further background checks on you. More specifically, an insurance company will run your motor vehicle report (MVR) to discover your driving history and determine if you have been involved in accidents, collected numerous speeding tickets, or been fined for other moving violations.
If you have several marks on your driving record, an insurance company will regard you as a high-risk driver and adjust your rates accordingly.
Now, insurance companies are also interested in your credit score. If you have a low credit score, an insurance company will also see you as a risky client to insure, not due to your driving abilities but because you may not be able to pay for your policy.
How to Reduce Insurance Rates
Drivers who have poor credit scores — or a few speeding tickets — may be concerned that their insurance rates could soar to untenable heights. However, there’s no need to panic. Most major insurance companies offer great discounts that can help you lower your rates and acquire the coverage you need.
As you shop for a new insurance company, you can use this guide to help you find a company that offers the best selection of discounts:
Auto Insurance Discounts from Top Companies
| Auto Insurance Discounts | Allstate (%) | American Family (%) | Farmers (%) | GEICO (%) | Liberty Mutual (%) | Nationwide (%) | Progressive (%) | State Farm (%) | Travelers (%) | USAA (%) |
|---|---|---|---|---|---|---|---|---|---|---|
| Adaptive Cruise Control | N/A | N/A | N/A | N/A | 5 | x | x | N/A | N/A | N/A |
| Adaptive Headlights | N/A | N/A | x | N/A | 5 | x | x | N/A | N/A | N/A |
| Anti-lock Brakes | x | x | x | 5 | 5 | 5 | x | 5 | x | x |
| Anti-Theft | x | x | x | 25 | 20 | 25 | x | 15 | x | x |
| Claim Free | x | x | x | 26 | x | 10 | x | 15 | 23 | 12 |
| Continuous Coverage | x | x | x | x | N/A | N/A | x | N/A | 15 | N/A |
| Daytime Running Lights | x | x | x | 1 | 5 | 5 | x | N/A | x | x |
| Defensive Driver | x | x | x | x | 10 | 5 | 10 | 5 | 10 | 3 |
| Distant Student | x | x | x | x | N/A | 10 | x | x | 7 | x |
| Driver's Ed | x | x | x | x | 10 | N/A | 10 | 15 | 8 | 3 |
| Driving Device/App | x | x | N/A | x | 30 | 40 | 20 | 50 | 30 | 5 |
| Early Signing | x | x | x | x | N/A | 8 | x | N/A | 10 | 12 |
| Electronic Stability Control | x | x | x | N/A | 5 | x | x | N/A | N/A | N/A |
| Emergency Deployment | N/A | N/A | N/A | 25 | N/A | N/A | N/A | N/A | N/A | N/A |
| Family Legacy | N/A | x | N/A | x | N/A | N/A | x | N/A | N/A | 10 |
| Family Plan | N/A | x | x | N/A | N/A | 25 | N/A | N/A | N/A | N/A |
| Farm Vehicle | x | N/A | x | x | N/A | N/A | N/A | N/A | N/A | N/A |
| Federal Employee | N/A | N/A | x | 8 | 10 | N/A | N/A | N/A | N/A | N/A |
| Forward Collision Warning | N/A | N/A | N/A | N/A | 5 | x | x | N/A | N/A | N/A |
| Full Payment | N/A | x | x | x | $5 | N/A | x | N/A | 7.5 | N/A |
| Further Education | N/A | N/A | N/A | x | 10 | 15 | N/A | N/A | x | N/A |
| Garaging/Storing | N/A | N/A | x | N/A | N/A | N/A | N/A | N/A | x | 90 |
| Good Credit | x | x | N/A | N/A | N/A | x | x | x | N/A | N/A |
| Good Student | x | x | x | 15 | 22.5 | 10 | x | 25 | 8 | 3 |
| Green Vehicle | x | N/A | 5 | N/A | 10 | N/A | N/A | N/A | 10 | N/A |
| Homeowner | N/A | N/A | x | x | x | 5 | x | 3 | 5 | N/A |
| Lane Departure Warning | N/A | N/A | N/A | N/A | x | x | x | N/A | N/A | N/A |
| Life Insurance | x | N/A | N/A | N/A | N/A | x | N/A | N/A | N/A | N/A |
| Low Mileage | x | x | x | x | x | x | x | 30 | x | x |
| Loyalty | N/A | x | N/A | x | N/A | 5 | x | N/A | N/A | x |
| Married | N/A | N/A | N/A | N/A | x | x | x | x | N/A | x |
| Membership/Group | N/A | N/A | N/A | x | 10 | 7 | N/A | N/A | x | N/A |
| Military | x | N/A | x | 15 | 4 | N/A | N/A | x | N/A | x |
| Military Garaging | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 15 |
| Multiple Drivers | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Multiple Policies | 10 | 29 | x | 10 | 20 | 10 | 12 | 17 | 13 | x |
| Multiple Vehicles | x | x | x | 25 | 10 | 20 | 10 | 20 | 8 | x |
| New Address | N/A | N/A | N/A | N/A | 5 | N/A | N/A | N/A | N/A | N/A |
| New Customer/New Plan | N/A | N/A | N/A | N/A | x | N/A | N/A | N/A | N/A | N/A |
| New Graduate | N/A | N/A | N/A | N/A | 5 | N/A | N/A | N/A | N/A | N/A |
| Newer Vehicle | x | N/A | x | x | N/A | x | x | 40 | 10 | 12 |
| Newly Licensed | N/A | N/A | N/A | N/A | 5 | N/A | N/A | N/A | N/A | N/A |
| Newlyweds | N/A | N/A | N/A | N/A | 5 | N/A | N/A | N/A | N/A | N/A |
| Occasional Operator | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | x |
| Occupation | x | N/A | x | x | 10 | 15 | N/A | N/A | x | N/A |
| On-Time Payments | x | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 15 | N/A |
| Online Shopper | N/A | N/A | N/A | N/A | N/A | N/A | 7 | N/A | N/A | N/A |
| Paperless Documents | x | x | x | N/A | N/A | 5 | $50 | N/A | N/A | N/A |
| Paperless/Auto Billing | x | x | x | N/A | x | $30 | x | $2 | 3 | 3 |
| Passive Restraint | x | x | x | 40 | x | 20 | x | 40 | x | x |
| Recent Retirees | N/A | N/A | N/A | N/A | 4 | N/A | N/A | N/A | N/A | N/A |
| Safe Driver | N/A | N/A | x | 15 | N/A | 35 | 31 | 15 | 23 | 12 |
| Seat Belt Use | N/A | N/A | N/A | 15 | N/A | N/A | N/A | N/A | N/A | N/A |
| Senior Driver | x | N/A | x | N/A | N/A | N/A | N/A | N/A | N/A | x |
| Stable Residence | N/A | N/A | N/A | N/A | N/A | x | x | N/A | N/A | N/A |
| Students & Alumni | N/A | x | N/A | x | 10 | 7 | N/A | N/A | N/A | N/A |
| Switching Provider | N/A | x | x | N/A | 10 | N/A | x | N/A | N/A | N/A |
| Utility Vehicle | x | N/A | x | x | N/A | N/A | N/A | N/A | N/A | N/A |
| Vehicle Recovery | x | x | x | 15 | 35 | 25 | x | 5 | x | x |
| VIN Etching | N/A | N/A | x | N/A | 5 | x | x | N/A | x | x |
| Volunteer | N/A | x | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Young Driver | N/A | N/A | N/A | N/A | x | N/A | x | N/A | N/A | $75 |
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As you can see, there’s no need to drive without insurance. There are plenty of discounts that can help you secure the best policy for you with savings to boot.
The Cost of Not Having Insurance: What You Need to Know
What are the costs of not having auto insurance? In short, it’s not worth it. You could pay expensive fines and lose your license or your vehicle registration. On top of that, an insurance company may hold that against you when you attempt to purchase a policy, and you could persist in paying higher rates.
Instead of risking your hard-earned funds and your driving freedom, purchase an insurance policy from a company that can meet your financial and coverage needs.
Enter your ZIP code to obtain free insurance quotes from insurance companies near your city because the costs of not having auto insurance are extremely excessive.
Frequently Asked Questions
Why is it illegal to drive without insurance?
A car accident can result in immense property damage, medical bills, and even death. All of these situations can financially destroy a household. While having an insurance policy will not allow you to rewind time, it will permit you to provide financial assistance to another driver that you’ve injured in an accident.
Can you drive without insurance if the car is insured?
Insurance coverage follows the car. That means that if you don’t have insurance, you could borrow your friend’s car — as long as your friend has an active policy for that vehicle. Now, you must remember that if you cause an accident and the damages surpass the coverage provided by your friend’s coverage, you could be sued by the other driver for damages.
Can I have a car without insurance and not drive it?
As long as your vehicle is not being operated, you do not need to purchase coverage for it. However, if you plan to drive it somewhere, you must purchase a policy. This is true even if you only want to drive five minutes down the road.