What Happens If You Get In A Car Accident And You Don’t Have Insurance?

Leah Bourne
May 30, 2018
Some of the links in this post are from our sponsors, and we might earn a commission if you click on one. We are letting you know because, as our grandmother taught us, an honest penny is better than a stolen dollar. Now, back to filling up your piggy banks.

Getting in a car accident is bad enough, but getting in a car accident without insurance? Let’s just say this: it’s not good.

It’s important to note that driving without insurance is actually illegal in most states. Ultimately you could face penalties such as fines or even lose your driver’s license. In a worst case scenario, you could even end up in jail. And these repercussions are all because you decided to drive around without insurance.

But what about if you get in an accident and don’t have insurance…

If You’re The One Who Causes The Accident

Cause a car accident, and don’t have car insurance, and you’ll be required to pay for all the damage out of pocket. The misery doesn’t stop there though, you can even be sued for the damage and injuries you might have caused.

In some states known as the “no fault” insurance states, you might fare a little bit better because drivers will file claims through their own insurance for injuries, no matter who caused the crash, and they’ll only be able to sue if they experienced severe injuries.

Bottom line, though, every state has different rules, so it’s important to read up on them.

And don’t think you can just buy car insurance the day following an accident, either. That policy will only apply to accidents following when it was bought.

If Someone Else Causes The Accident

Think just because you didn’t case the accident and you don’t have insurance that you are off the hook? Think again. While the driver who is at fault is responsible for damage to his or her own car, people without insurance can’t necessarily recoup damages.

For instance, if you live in a state with “no pay, no play” laws, and you don’t have insurance, forget about suing for damages of any kind, even if the accident leaves you severely injured.

Following an accident, you are also going to have trouble finding cheap insurance rates, and it won’t matter that you weren’t the one who caused the accident.

Bottom Line: Don’t Risk It

The only state in the U.S. where it’s not illegal to not have car insurance is New Hampshire, so, chances are if you are driving around without it you are doing something illegal. No sane person is going to advise you to do that. Beyond the legal consequences, think about the financial risk you are putting yourself in by not having insurance. It’s not worth it.

With a little shopping, you really will be able to find car insurance that fits in your budget. The first place to start is Quote Genius, which will connect you with insurers in your area so you can get the best rate.

Image: Unsplash

Do you think this article will help you with your finances?

Latest Posts