56% of Younger Drivers Have Thought About Ditching Car Insurance Due to Cost. Here's Why That's a Really Bad Idea

When you own a car, there are numerous expenses you have to cover on top of your auto loan payments. You have to maintain your vehicle and, in some cases, pay for a safe place to park it. You also have to cover the cost of auto insurance.

A 2023 Policygenius survey, however, reveals something pretty disturbing. A good 56% of drivers aged 18 to 34 surveyed have considered driving around without auto insurance because of the high costs involved. And 26% of all drivers have contemplated going the same route.

The problem, though, is that driving around without auto insurance could lead to a host of negative consequences. So before you make plans to ditch your car insurance, consider what might happen if you let your policy lapse and don't put another one in place.

You could face costly fines

Most states generally require drivers to obtain a minimum amount of auto insurance coverage. Now, the specifics there can vary based on where you live. But in a nutshell, if you go without auto insurance completely and get caught, you could face expensive fines for not having insurance.

And in some cases, you could face worse consequences than that, like having your license suspended. That could put your job at risk if you rely on your ability to drive to get to work.

You could face costly damages

The whole point of having auto insurance is to protect yourself financially when your car sustains damage, or when another car sustains damage as a result of your actions. If you don't maintain auto insurance coverage, you might face an extremely expensive car repair bill if you cause an accident and your vehicle gets damaged.

Worse yet, if you cause an accident and are uninsured, the driver of the car you hit won't be able to file a claim against your auto insurance policy if you don't have one. That means they might try to sue you personally for damages.

What if you don't drive your car?

It's generally illegal to drive without auto insurance. But what if your car isn't being driven?

Let's say you keep your car parked in your driveway at all times because you no longer need it for work, and you're not quite ready to sell it. In that case, you may not be doing anything illegal by not having coverage. But without auto insurance, you won't have protection in case your car gets stolen or damaged in an accident or storm while it's parked. And that's not a good thing at all.

Clearly, ditching your auto insurance policy could lead to a host of negative consequences. So rather than go that route, try to find ways to make your coverage more affordable. You may be able to lower your costs by shopping around with different auto insurance companies or raising your deductible.

In the latter scenario, you'll end up having to shell out more money when you file an insurance claim. But you might also manage to lower your premium costs significantly.