AUTO INSURANCE ARTICLE

Driving Without Auto Insurance: Is It Legal?

By: james_writer

Auto Insurance Premiums could be an unlikable expense, thus leaving many drivers to doubt whether or not they really need an auto insurance at all. In majority of cases, the answer is a definite yes. Just because you are categorized as a "safe driver" does not mean you can get away without auto insurance. Definitely, there are so many things that can happen everytime you hit the road which drivers can never anticipate. Not only that driving without is illegal, this is also dangerous.

Auto Insurance Laws in Different States

Every state has a unique set of auto insurance laws, however, every state has financial responsibility laws. This means that you must be able to prove that you are financially capable of covering the costs that you could possibly incur in a vehicle accident. If you are not aware of what the insurance laws are in your state, it is a lot wiser to assume that you need to purchase some sort of bodily injury and property damage liability. You may also consult the insurance information institute. Also, your state insurance department and your local auto insurance agent will all be able to discuss with you the minimum standards of coverage required in your state.

Driving Without Auto Insurance

If you got caught on the road without any auto insurance, either due to a road accident or simply because a police officer got you pulled over for an unrelated matter, you may be subjected to a criminal prosecution and charged with fines or worse, serve jail time. Moreover, your driver’s license can also be suspended or revoked. Furthermore, you will be held liable for any damage the accident has caused to other cars or people involved in the accident. Sadly, this incident could wipe out your financial assets.

Paying Lower Than the Required Auto Insurance Premiums

There are some low-income drivers who find it necessary to drive just to get to their destination, but are unable to pay the required monthly insurance premium. There are some states with laws that provide low-income drivers, or those with to those who can prove a sub-standard income, special rates and benefits. These individuals can also lower their premiums by opting for a higher deductible, although they will then be responsible for paying that deductible if an accident should occur.

Auto Insurance Requirement for Leased Vehicles

Just like any other vehicles, a leased vehicle is still required to have a standard liability insurance. There are, however, some instances where your lender may also require you to have a collision and/or comprehensive coverage simply for the protection of their vehicle. If you are planning to hit the road with a leased vehicle, be sure to check your lease contract to make sure if you are accountable for any collision and/or comprehensive insurance premiums.