Don't Get Caught Without Auto Insurance

Driving without auto insurance is never a good idea. The benefits of insurance provide peace of mind and are worth the cost of the investment. If you decide to forgo insurance for your motor vehicle, then you need to be aware of the consequences that you could possibly face. Even the most careful driver runs the risk of becoming involved in an accident, simply because you can’t control the drivers around you. There are many ways that you could be caught without auto insurance—and they will all cause unnecessary frustration for yourself.

In many states, drivers are required to sign a statement at the time of vehicle registration which affirms that they maintain insurance, or some other form of financial responsibility. These states may select a number of licensed drivers every so often for random insurance checks that take place via mail. If sufficient proof is not provided, a driver’s license can be suspended. Law enforcement officers typically request proof of financial responsibility whenever they make traffic stops for moving violations, or whenever they conduct safety checkpoints-yet another reason to carry auto insurance. If you don’t have the proof to show at that time, you are only given so long to show that you were covered for that time period, and if you cannot do so, be prepared for some headaches.

Legal Issues

Lack of insurance could lead to several legal penalties.

-      Your motor vehicle driver’s license will be suspended for a period of time, dependent on your state’s law. For most, the minimum length is six months.

-      You may be able to obtain a temporary occupational driving license which can only be used during the time it takes for your commute to work. Even these are not guaranteed.

-      The license suspension will be available on your driving record for years, and may negatively impact your ability to gain employment.

Financial Penalties

-      There are sizable fees that are required to reinstate a suspended license.

-      Your insurance rates will go up, negating any savings from dropping auto insurance in the first place.

-      You may be required to maintain a document called a SR-21 with the insurance company for a specified period of time. This acts as an additional certificate of compliance, and is reported to your state DMV on a monthly basis. There are fees charges by the insurance company to maintain this service.

-      If you’re involved in an accident, the costs can be tremendous for you and anyone else that may be involved. Your finances could be placed in turmoil if you are sued for medical bills and property damage.

Clearly, maintaining auto insurance is a no-brainer. Smart consumers will make the right choice to protect their finances and mental well-being.

For more information about Denton auto insurance, give Insurance Connection of Texas a call at 940-382-4700.