Penalty for Driving Without Insurance for Every State

You're putting yourself at risk in more ways than one if you drive without insurance. The lapse in your coverage after driving without insurance will cost you, on average, 10% more when you finally get a new policy in place.

But the no insurance penalty is much higher in some states. For instance, in California, the average driver faces a 36% hike, and in Massachusetts and North Carolina you'll see increases of about 30%, CarInsurance.com rate data show.

Additionally, the penalties for no insurance vary by state. More importantly, if you get in an accident, you're on the hook to pay for the damages.

For example, in California, if you drive uninsured and get in an accident, you could lose your license for up to four years, whether or not the accident was your fault. After a year, you may be able to get your license back if you get insurance, provide proof to the motor vehicle department and pay a reinstatement fee.

Bear in mind you will also be required to file an SR-22 form to show proof of financial responsibility. You are additionally responsible for all the costs associated with the accident. Even if the other driver has uninsured motorist coverage and his insurer compensates him, his insurance company will likely sue you to recover its costs. This means you could lose your assets and home if the cost of the damage exceeds the amount of money you can pay.

Even if you're lucky enough to avoid an accident while driving without car insurance, in many states your registration and license will be revoked if you're cited. You have to pay a fine and your car may be impounded. Rather than driving without insurance, consider buying the cheapest car insurance you can get. This would be the minimum liability insurance requirement in your state to drive legally. In some states, minimum coverage costs less than $400 a year.

David Reischer, attorney at LegalAdvice.com Corp., said penalties against uninsured drivers are often too lenient. Uninsured drivers who injure people in accidents leave the injured party with no recourse except suing the uninsured driver, Reischer said. 

“This is simply unfair to all the other drivers that play by the rules and maintain their automobile insurance policy to compensate an injured party. Any person that cannot afford automobile insurance should simply not be driving on the public roads,” Reischer said. 

Reischer added that jail isn’t overkill for uninsured drivers. People injured in accidents involving uninsured drivers could face significant costs from injuries and vehicle replacement costs. 

“The rule of law requires that all automobile drivers must maintain an active insurance policy. This rule is in recognition of the risks and dangers that are inherent to the activity of driving. If everybody drove on the public roads without maintaining their insurance policy, then the bonds of trust that make our society function would break down,” Reischer added.  

Here are state car insurance laws pertaining to uninsured motorists penalties and fines:

• * Class A infraction that allows fines up to $10,000
• ** Required to obtain duplicate license with notation of  "proof of liability insurance" 
• Note: Maximum penalties current as of January 2014 and based on research and information given by state governments. 
• If your license or registration is suspended, be prepared to pay a reinstatement fee of anywhere from $25 to $250.