When I got my kids a dog, I had no idea that it could affect my homeowners insurance. I happened to run into my insurance agent in the store when I was buying dog food and he asked me what kind of dog we had. When I told him, he said I should stop in the office the next day. I had no idea that things like this could affect premiums, so I started asking what else could do it as well. I created this site to help others understand some of the finer points of homeowners insurance and what they should think about to manage their rates.
If there is one thing you should never do as a motorist, it is to drive without insurance coverage. Imagine driving without insurance and getting involved in an accident. Here are some of the consequences you may suffer if you cause an accident without insurance coverage.
You Are Likely to Face Monetary Fine
Most states have monetary fines for drivers caught driving without auto insurance coverage. Several factors will determine how much you have to pay in such a case. For example, the court is likely to consider how long you have been driving without coverage, the seriousness of the accident, and the fine limits (if there are any) as enshrined in the law.
You Driving License Is Likely to Be Suspended
Driving without an insurance cover is also likely to see your driving license suspended. In fact, in some places, the license suspension is automatic so there isn't anything you can do about it. Not only that, but your car may also be seized and impounded. In short, the government will do everything in its power to ensure that you can't drive anymore.
You Will Incur Your Own Defense Costs
If someone decides to blame you for a car accident, they may sue you for their damages (bodily injuries and property damages) if you don't or can't settle their claim outside the court. If you have insurance coverage, your insurance company will assume your defense because it stands to lose (by writing the check for the damages) in case you lose. If you don't have auto insurance coverage, then you have to cater for your own legal defense and the associated costs.
You Will Pay the Damages Out of Pocket
In case you are responsible for a car accident that causes property damage or bodily injury to others, then you have to pay for the associated damages. Just like with your legal defense, your car insurance company will settle the claim against you (either out of court or by paying the settlement once the judgment is reached in court). However, this won't be the case if you don't have coverage, and you will have to use your assets (that the court may even garnish) to settle the damages.
Your Auto Insurance Costs Are Likely to Balloon
Lastly, driving and causing an accident without insurance coverage is a travesty as far as auto insurance companies are concerned. It shows that you are not risk-averse, which means your subsequent auto insurance rates are likely to be higher than they were before.
For more information, contact an insurance company, such as Scovotti Insurance.
Share29 October 2018
