Here's What Happens if You Drive Without Car Insurance

Car insurance premiums can be expensive. It's not a surprise that some drivers may not enjoy taking the hit to their checking account when they have to pay premiums every month. But, while buying auto insurance comes at a cost, it's important to have coverage because the consequences of not having insurance can be dire.

Wondering what exactly would happen if a driver forgoes car insurance? Here's what occurs in this situation.

Driver's license suspension

Many states require drivers to purchase a certain minimum amount of auto insurance coverage. And they impose penalties for failing to comply with these rules.

Driving without insurance will often result in a license suspension. This means an uninsured motorist who is stopped by police and caught without coverage will lose their license to drive their vehicle for a period of time.

The exact specifics of when a license suspension will occur and how long it will last will vary by state law. In Pennsylvania, for example, a motorist may face a three month license suspension while other states impose shorter or longer restrictions.

When the suspension period ends, fees may be assessed in order for the uninsured driver's license to be restored. In PA, those fees add up to $94 (or $202 for a commercial driver's license).

Registration suspension

In many states, a motorist who is caught driving without insurance will also have their vehicle registration suspended for a period of time. This will make it illegal to operate the motor vehicle. Driving the car isn't just off limits to the uninsured driver, either. No one is allowed to operate it while the registration is suspended.

Again, the length of the suspension -- and whether this penalty is imposed -- is going to vary from one location to another. In Pennsylvania, uninsured drivers also face a three-month suspension of their registration. When it is time to re-register the vehicle after the suspension ends, doing so will also cost money.

Additional fines

In addition to the costs associated with restoring a license and a vehicle registration after suspension, drivers may also face fines. As with all penalties, the cost of driving without insurance will vary by state. In PA, the minimum fine is $300.

Misdemeanor charges

Drivers who choose to go without insurance may sometimes face misdemeanor charges. This is more likely to occur if a motorist is a repeat offender who has regularly driven without insurance or if a motorist causes a crash without insurance coverage in place. In other cases, drivers will be charged with a summary offense instead, which is less serious than a misdemeanor but is still considered a criminal offense.

A lawsuit to recover compensation from personal assets

Finally, one of the most serious consequences of driving without insurance is the possibility of a lawsuit if an uninsured motorist causes harm.

See, as mentioned above, many states require the purchase of certain kinds of insurance. Specifically, drivers are generally required to buy liability insurance, which pays for losses the policyholder causes to other people.

If a driver gets into a collision and hurts someone or damages that person's property, the victim of the accident could sue that at-fault motorist. Normally, the insurance company would pay, but if there is no insurance, the driver who is found liable for the accident could be required to cover losses out of pocket. That could be very expensive.

All of these consequences are dire and not worth facing just because of a lack of insurance coverage. Drivers should comply with their state's rules and buy at least the minimum required amount of auto insurance coverage -- and, ideally, should get more than the minimum to fully protect their assets in case of an accident or other occurrence.