What Happens If You Get Into An Accident Without Insurance?

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Importance Of Auto Insurance:

Auto insurance is mandatory in most states in the US. Accidents can be very traumatic. In the worst situations, you might not be in a position to make effective decisions. Auto insurance comes as your rescue to help you minimize the damages as much as possible.

Charges For Driving Without Auto Insurance:

Like most of the states in the US, auto insurance is a must in Texas. You can get into serious trouble if you do not have auto insurance. Even if you do not get into an accident, you need to carry proof of insurance all the time. If you are unable to show proof of insurance to the traffic police you can face some grave consequences.

First time offenders of auto insurance in Texas are charged a fine between $175 and $350. Not just that, you will have to pay a surcharge up to $250 along with your annual driver license fee for three years in a row. However, if you continue to drive without getting auto insurance, your fine could rise to $350 up to $1000. Your license can also be suspended or revoked. Getting your license back is another hassle. Even your vehicle can be impounded. Getting it back could be very cumbersome as well as costly. In the worst situations, offenders can even go to jail.

Hence, it is in your best interest to drive safely and guilt free by obtaining auto insurance as soon as you buy your car or learn driving.

Consequences Of At-Fault Accident:

This is probably the worst situation you can ever get into. When you are driving without insurance, how costly it can get we have already seen. But if you get into an accident in such a state, the financial burden can be huge. In that case, you will have to bear all the expenses arising from the accident. You will have to pay for the injuries, damages to the car, wages lost and in worst scenarios, if the other party sues you, consequences can be very ugly.

On the other hand, if you have had auto insurance all these costs would have been borne by your insurance company. You would not have been personally liable to pay for the losses of others.

Consequences Of Not-At-Fault Accident:

If the accident occurred because of the other party’s fault, the case is treated like any usual accident. The at-fault party will have to pay for all the expenses, medical, damages to the car, lost wages and any other cost arising from the accident. There is no constraint as to what the uninsured motorist can claim. Having said that, the penalties for driving without car insurance will still be there.

Impact On Insurance Premiums:

After being penalized for driving without car insurance, you decide to get insurance to be prepared to pay high premiums. Insurance companies charge premiums on the basis of their risk estimation associated with the customer. Such a customer who has violated laws before is considered risky by the insurance company as they might violate laws in the future as well. They will charge even higher premiums if you have caused an accident while driving without insurance. Likewise, those customers who let their insurance lapse also create trouble for themselves. Insurance companies charge higher premiums to such customers as well.

Insurance companies typically look for safe customers who drive with insurance and pay the premiums on time. Such customers are even rewarded with discounts. Especially those customers who drive safely and install safety gadgets in their cars enjoy lower premiums. So, it is best for you to drive with insurance and avoid the devastating consequences as described above.