Driving with car insurance is a lot like driving with your seatbelt buckled. Both of them help keep you protected. Just as you should never drive without being buckled up, you should never drive your car without insurance.
Still, many American motorists don’t have car insurance. A 2017 study by the Insurance Research Council found that in 2015, about one of every eight drivers in the U.S. was uninsured. According to the study, Florida had the most uninsured motorists in 2015 — more than one-fourth of the state’s drivers had no coverage.
Wondering why you should keep your car insurance active? Here are five excellent reasons:
- It’s the law.
In every state except one (New Hampshire), car insurance is mandatory, according to the Insurance Information Institute. Requirements for minimum coverage vary by state. However, in 49 of the 50 states, you’re breaking the law if your car has no coverage at all.
If you’re caught driving without insurance, you could be fined, sent to jail, or lose your driver’s license or vehicle registration. You could even have your car impounded by the police.
- It’s required by lenders.
If you took out a car loan or got a car lease, the bank, auto dealership or finance company (which technically owns your vehicle) normally requires a minimum amount of coverage — coverage that you’re responsible for buying.
What happens if you have a car loan or lease and let your coverage lapse? The lender likely will buy what’s called “forced-placed” insurance to cover your car, because it wants to protect what it owns. But you’ll end up paying for the coverage. And if you fail to pay for the “forced-placed” coverage, it’s likely that the lender will repossess your car.
- It’s financially risky to drive without coverage.
Driving without car insurance is like driving while blindfolded. Both are dangerous!
If you lack insurance and happen to be involved in a crash, you’ll be left paying to fix your car on your own. And if you’re injured, you’ll have to cover your own medical bills. The same would be true for any of your passengers’ medical bills.
And, if you cause a wreck that injures another person and/or their property, you will be liable for those damages. If you’re sued, you’ll be responsible for covering your legal bills to defend the case. And if you lose in court, you could be ordered to pay thousands of dollars.
- It’s a smart way to protect your car.
What happens if your car is stolen or someone breaks into it?
If you’ve got car insurance that includes Comprehensive Coverage, your policy will cover the theft or damage caused by the break-in. Without car insurance, you have no financial protection if your car is stolen or broken into. Just what’s in your wallet!
- It can be harder to get insurance after you’ve driven without it.
Let’s say you’ve driven without car insurance — maybe it lapsed after you couldn’t pay your premium — but then decide you really should have coverage.
When you’re shopping around for insurance after going without it, you could find it more difficult to get a policy. You may also be presented with higher rates. Some insurers might not want to offer coverage to you, while others might want to charge a lot for a policy.
At Direct Auto & Life Insurance, though, we work to provide all drivers with the coverage the need, the services they want, and the respect they deserve — regardless of their insurance history.
The sad truth is, if you don’t keep your car insurance active, you’ll have to deal with the headache of canceled car insurance. Why go without car insurance when affordable car insurance is out there? With friendly agents available online, over the phone, or in person, PLUS flexible payment plans, Direct Auto makes it easy to keep your car insurance active. Come in to a Direct Auto location near you or call 1-877-GO-DIRECT (1-877-463-4732) to learn more today!
* By the Direct Auto & Life Insurance carrier & agency members of the National General Ins. Grp., Winston-Salem, NC. This article is for general information or entertainment purposes only. Direct General is not responsible or liable for the availability of links to websites or resources, or for any content, advertising, products, services or other materials on or available through these websites or resources or your reliance thereon. Any references to third party rates or products are subject to change without notice. Trademarks are property of their respective owners. Direct General policies, payment plans, and discounts are subject to terms and conditions and may not be available in all states. Rates and Savings, if any, will vary. Costs may vary based on how you buy.