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Driving without car insurance is illegal in most states and creates huge financial risks. Yet, 34% of drivers were either uninsured or underinsured in 2023, according to a new report from the Insurance Research Council.
You don't want to be one of those statistics. Let's explain what happens if you don't have car insurance and you cause an accident or get stopped by the police. We'll also share strategies that can help you find affordable auto coverage.
Learn more: How does car insurance work? The basics explained.
Your state's insurance requirements
Your state sets auto insurance requirements for all residents. There are two broad types of auto insurance frameworks across the 50 states:
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At-fault states usually require you to have liability insurance that pays for damages and injuries you cause.
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No-fault states require you to carry personal injury protection or PIP insurance. PIP pays for injuries you sustain, no matter who caused the accident. You can optionally add comprehensive coverage and collision coverage, which pay to repair your vehicle after an accident.
New Hampshire is the only state that does not require auto insurance. This does not mean you should drive without insurance, however. New Hampshire requires you to show proof of financial responsibility if you cause an accident. As you'll see below, an insurance policy is often the easiest way to provide that proof.
Learn more: Minimum car insurance requirements in all 50 U.S. states
Penalty: Getting in an accident without car insurance
The consequences for driving without car insurance are most severe if you get into an accident and someone calls the police. Depending on your prior driving record and where you live, the outcomes may include:
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Fines
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License suspension
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Vehicle impound
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Jail time or community service
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Higher insurance premiums later
Things get much worse if the accident causes property damage or injury. Depending on your state's laws, you will be personally liable for repair costs, medical bills, or both.
If you live in New Hampshire and cause an accident, you must prove you can afford the resulting costs. One form of proof is an auto liability policy covering $25,000 in medical claims for one person, $50,000 in medical claims for two or more people, and $25,000 in property damage. The other acceptable proof is a cash or securities deposit with the state treasurer.
Penalty: Getting pulled over without car insurance
Getting pulled over without car insurance also has serious consequences. You won't face accident-related costs, but your state will charge a fine, may suspend your license, and more. State fines for driving without insurance range from a few hundred dollars to $5,000. You'll pay more on second and third offenses.
Here are two examples of the more extreme state-level penalties for driving without insurance:
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In Massachusetts, you can be fined up to $5,000 and sentenced to up to one year in jail.
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In West Virginia, you can be fined up to $5,000 or spend up to a year in jail for a repeat offense.
How to find cheap car insurance
Before you let the fear of high costs turn you away from purchasing car insurance, consider all the ways you can find cheap car insurance.
Discounts and bundling
Many car insurance companies offer car insurance discounts or low-cost coverage programs for qualified drivers. Maybe you can bundle multiple policies and take a driver safety course to reduce your premiums to an affordable level.
Learn more: Car insurance discounts: 17 ways to save
Low-income programs
If you can't afford a standard car insurance policy, check into your state’s low-income programs for sponsored coverage. These policies may be subsidized or available through specific carriers and can put adequate coverage within reach.
Buy non-owner car insurance
If you don’t own a car, shop for a non-owner car insurance policy. This type of coverage is less expensive because you drive infrequently.
Learn more: What is non-owners car insurance?
Alternatives to car insurance
Public transportation, rideshares, and carpooling
You may not need your own car and insurance to get around town. Buses, subways, trains, carpool/slug lines, and rideshare platforms don’t require you to buy insurance.
Borrow a car when you need to drive
When you occasionally borrow a vehicle, you may be covered under the car owner's policy. Be sure to verify that the car owner's insurance includes permissive use coverage. You still need a valid driver's license and permission to use the vehicle.
Learn more: What happens if someone else crashes your car?
Driving without car insurance FAQs
Can you drive a car with no auto insurance?
Technically, you can drive a car without insurance — but you shouldn't. The consequences can range from fines to jail time to financial ruin.
How can you get away with no car insurance?
The best way to get away with no car insurance is to stay out of the driver's seat. Without car insurance, you probably can't renew your vehicle registration or finance a car purchase. If you get pulled over, your state may charge a fine and suspend your license. If you get into an accident, you could get sued over property damage and injury costs.
How many people drive without car insurance?
According to the Insurance Research Council, one in seven drivers in the U.S. has no car insurance.
What happens if you get in an accident without car insurance?
If you get into an accident without car insurance, you will pay for the resulting property damage and medical costs out of your pocket. If you don't pay, the other driver may sue you and can garnish your wages if the court rules against you.
What if someone who doesn't have insurance hits you?
If someone who doesn't have insurance hits you, you likely will have trouble getting reimbursed for your vehicle damage and medical expenses unless you have the proper coverage. You can sue the at-fault driver to get a court judgment and, potentially, a wage garnishment. Many drivers prefer to carry uninsured motorist coverage, which pays for your costs when the at-fault driver doesn't have coverage. This spares you the hassle of a lawsuit.
This article was edited by Tim Manni
