Can You Legally Drive Without Auto Insurance?
Posted April 28, 2007, at 7 a.m.
In one word: No.
While it may be tempting to drive without auto insurance, it's illegal.
In fact, most states require at least a minimum amount of insurance (referred to as "minimum limits") to operate a vehicle, though a very small number of states may require some other evidence of financial responsibility. Generally, you are required to show proof of insurance to purchase a vehicle from a dealership, to obtain a driver's license or to renew registration, so proof of financial responsibility is fairly difficult to work around.
Plus, if you are somehow caught driving without insurance, it can be costly. In addition to receiving a fine, if convicted, your license may be suspended, and you may have to satisfy additional state filing requirements. As a result, your insurance premium may be affected.
While it's a smart idea to purchase auto insurance because it's often required, it's also wise to purchase it because it protects you and your assets. For example, if you are found at fault for causing an accident and your policy limits are completely exhausted, your personal assets, such as your house, investments, etc., may be at risk. On the other hand, if the other party is at fault and they are either uninsured or underinsured, you may be responsible for paying for your own medical care. Having insurance — specifically uninsured/underinsured motorist coverage in this instance, can benefit you.
Consider all possible circumstances, including those mentioned above, when selecting your auto insurance policy coverages. In the long run, to protect your assets and avoid higher out-of-pocket costs, it pays to drive legally — and that means with insurance. To see what your state's requirements are, contact your insurance company or your state's department of insurance.
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