If you own a car, you must have car insurance. An auto insurance policy may be an option or a factor of luxury for you. Nevertheless, in most states, insurance is mandatory to legally drive on public roads, and driving without car insurance can result in the following consequences.
If you are caught driving without car insurance, you will be penalized with hefty fines depending on your state regulations and vehicle type. Sometimes, your license will be suspended.
If your vehicle is involved in an at-fault accident, you will be held liable for the losses (including property damage and bodily injury) caused to the third party. If you don’t have car insurance, you will need to cover the losses out of pocket, which could devastate your finances if the incident you are involved in causes extensive damages and repairs or results in loss of life.
If you are involved in an accident, there is a possibility that your vehicle could sustain bodily damage. In such circumstances, you need to cover them from your pocket. Besides accidents, you have to be liable for the losses resulting from theft or vandalization of your car, accidents caused by uninsured or underinsured drivers, or damages caused by natural disasters, such as hail, storms, heavy rains, etc.
Besides being liable for financial hazards, driving without car insurance can lead to legal complications, such as a challan (official notice issued by authorities of the Motor Vehicle Act) and imprisonment.
If you fail to renew your car insurance policy, along with the above consequences, you might lose the “no claim bonus” that you have accumulated with your existing policy. A “no claim bonus” can make you qualify for a discount on car insurance premiums, and this discount increases every year, saving a considerable amount in your premiums. However, if you have a coverage lapse, you will lose the “no claim bonus” and may end up paying a higher premium when you renew the policy.
Failing to carry auto insurance that is mandated by law can leave a black mark in your insurance history. All insurance agencies can access this information, so you may need to pay higher premiums even if you switch providers.
No matter whether you drive frequently or occasionally, a car insurance policy is a must to stay protected against at-fault accidents and collisions, and resulting financial liabilities. Not only during driving, but car insurance protects your vehicle when it is parked or stored in a garage. So, with the right car insurance policy, you can ensure your peace of mind and comfort on and off the roads.
Spotlight Insurance Agency is your trusted partner for all your auto insurance needs. We understand every person, and their vehicle is unique, and that’s why we personalize your auto insurance policy according to your location and road-specific exposures. Contact our insurance professionals to find the right auto insurance policy that helps you stay covered at every turn.
