Car insurance is a necessity for all drivers. If you are involved in an accident and your vehicle has no car insurance, there are many penalties you could face. These penalties differ from state to state as well. If the accident involves more than one party, the penalties of having no car insurance affects all parties.
There are various coverage levels with car insurance. The most common ones for many countries include medical coverage, physical damage coverage, third party coverage as well as fire and theft. The penalties imposed to a person with no car insurance have to do with the payment of all these coverage.
Some of the common things that happen when you are involved in an accident with no car insurance include the legal penalties. Adding to the legal fines, being involved in an accident with no car insurance could result to suspension of driver's license. The license suspension period differs and could go up to a period of three years. License suspension could also be accompanied by suspension of license plates. These suspensions are usually rigorous at the end.
A person can personally sue you if you get into an accident with no car insurance and you are the one responsible for the accident. This is for any damages caused as well as injuries. For this case, the insurance company is not involved in paying for damage and injury. Therefore, you might end up paying loads of cash to cater for all damages caused. This covers for each and every party whose vehicle was damaged as well as the ones injured. To be able to pay for all these, any of your assets are used and you lose them right away.
Being involved in accidents with no car insurance also affects your vehicle. You are the one responsible for its repair and not the insurance company. You also risk your health and besides paying for injuries caused to other people, your health becomes your concern.
Tips and comments
The best thing to escape all these penalties is having your license every time you are on public roads. What happens when you are involved in accident with no car insurance is thus very harsh. These outcomes are not that friendly and they always keep you in danger. These ruin your life since your assets can be acquired. It is always good to have auto insurance all the time.