Can I Legally Drive Without Insurance?

Auto insurance premiums can be an unpleasant expense, leaving some drivers to wonder whether or not they need auto insurance at all. In most cases, the answer is an emphatic yes. Just because you are a "safe driver" does not mean you do not need insurance. Many things can happen on the road that a driver cannot anticipate. Driving without any auto insurance is not only illegal in most states, but it's also dangerous.

State Auto Insurance Laws

Auto insurance laws tend to vary from state to state, however, all states have financial responsibility laws, meaning you must at least prove that you are financially able to cover the costs you may incur in a motor vehicle accident. New Hampshire and Wisconsin have only financial responsibility laws. If you are not sure what the laws are regarding insurance in your state, you should assume that you are required to purchase some kind of bodily injury and property damage liability. The insurance information institute, your state insurance department and your local insurance agent will all be able to tell you what the minimum standards of coverage are in your state.

Driving Without Auto Insurance

If you are caught driving without auto insurance, either because you are involved in an accident or because you are pulled over by police for an unrelated matter, you may be subject to criminal prosecution and face fines and/or jail time. You may also have your driver's license suspended or revoked. In addition, you will be personally responsible for any damage caused to other cars or people with whom you are in an accident. This could potentially wipe out any financial assets.

Paying Less Than the Standard Auto Insurance Premiums

Some low-income drivers may find it necessary to drive in order to get to their place of employment, but they are unable to pay the monthly insurance premium required. In some states, there are low-income driver laws that provide special rates and benefits to those who can prove a sub-standard income. 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.

Required Auto Insurance for Leased Vehicles

A leased vehicle is still required to carry the standard liability insurance. However, your lender may also require you to carry collision and/or comprehensive coverage in order to protect their vehicle. Check your lease contract to see if you are liable for any collision or comprehensive insurance premiums.