It's required by law to purchase auto liability insurance within North America. Auto insurance provides coverage in the event of injury and death, or damage to an individual's personal property. Any person caught operating a vehicle without insurance is liable to be fined up to $25,000. Repeat offenders can expect a fine of up to $50,000. More importantly, if you are found to be at-fault for an accident causing injury or death, you may be held personally responsible for the victim's medical costs and other losses. If you are injured in an accident while driving or occupying an uninsured vehicle, all rights are waived for reimbursement of any lost wages or benefits while off work. You also forfeit the right to sue the at-fault driver for compensation as a result of injuries received in the accident. You now run the risk of being held personally liable for civil law suits in a court of law.
High Insurance Rates
If you are convicted of driving without valid automobile insurance, your insurance company may consider you a "high-risk" driver and charge you expensive insurance rates. Your car insurance company may also choose not to renew your policy. At that point, you would no longer qualify for insurance in the regular market. You would be forced into the facility insurance market where the premiums are much higher. Be prepared to stay in this high risk market for a minimum of three.years.
Driver & Vehicle Licensing
According to the law, all vehicle owners must purchase auto liability insurance in order to be registered. The purpose of this law is to ensure all drivers demonstrate financial responsibility if involved in a motor vehicle accident. If this law is violated, expect to have your vehicle impounded and your license suspended. The minimum reinstatement fee is $150 and it will cost you another $200 to recover your vehicle from the towing yard. If your car is financed or leased, the contract prohibits the use of driving without insurance. The financial institution or leasing company has the right to repossess the vehicle if it is being driven without car insurance.
Auto insurance quotes between companies can vary by hundreds, even thousands of dollars. Saving money is on everyone's mind. The only way to ensure you find which companies offer the lowest price is to do an online rate search. Companies such as InsuranceHotline.com offer free rate searches for consumers and direct you to the company that has the lowest rate for you and your family.
