Every state requires motorists to carry at least a state-mandated minimum amount of liability insurance to pay for injuries or property damage that others might suffer. Most property and casualty insurance agencies help auto owners insure their vehicles to protect them and others against financial liability due to accidents. According to Forbes, about 14% of motorists drive uninsured vehicles. The percentage is even higher in many states and urban areas. Here are the financial consequences of not having car insurance.
Fines and Potential Criminal Charges
If you’re caught driving an uninsured vehicle, you’ll likely see your vehicle get impounded and towed to a holding yard. You also will be fined hundreds of dollars or more and possibly charged with a misdemeanor. You likely will need to obtain at least state-mandated liability insurance for personal injuries and property damage from one of your local insurance agencies before going to get your vehicle out of the impoundment lot. You also might lose your driving privileges or have them restricted.
Legal Liability for Injuries and Damage
If you cause an accident while driving, the lack of liability insurance would make you liable for all costs and harm that you might cause others. Any vehicular or other property damage you might cause in an accident would come out of your pocket. You also would be responsible for medical costs, pain and suffering, and other harm to those you might have injured if you are at fault for causing an accident. The harms might include lost wages and other costs, which could force you into bankruptcy that you could have avoided by getting insured with the help of local insurance agencies.
Loss of Compensation Rights When Not at Fault
Many states require you to have legally mandated levels of liability insurance to qualify for reciprocal coverage if someone else causes an accident that damages your vehicle or causes you injuries. It’s called “pay to play” and holds you accountable if you don’t have liability insurance or other mandated insurance protection as required by your state. The idea is to ensure everyone has mandated levels of insurance, which helps insurers afford to pay legitimate claims while charging lower rates for auto insurance.
You can call, submit an online request, or visit our insurance agency when you need insurance for your auto, motorcycle, or other road-going vehicle. We are an independent and family-owned insurance agency. We’ve helped insure Oregon drivers since 1979. Reach out to AOA West Insurance.