--- title: What Actually Happens if You Don't Buy Car Insurance? description: Car insurance prices have increased faster than other expenses, but skipping auto insurance coverage is a very bad idea. authors: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter. In his time at Money, Pete has covered everything from car buying to credit cards to the housing market. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 602 covers: - Insurance - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Insurance - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2024-02-22T16:06:19.000Z' modified: '2025-04-15T22:20:00.000Z' section: Insurance tags: - cars - News word_count: 947 canonical: https://money.com/what-happens-dont-buy-car-insurance/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Crashed car with illustrated sketches on top](https://img.money.com/2023/10/News-What-happens-if-you-dont-buy-car-insurance.jpg?crop=0px%2C115px%2C2880px%2C1620px&quality=85) Car insurance prices are spiking, and drivers may be wondering what would happen if they simply skipped coverage to try to to save money. Premiums are up more than 20% in the past year, and [experts predict car insurance prices](https://money.com/car-insurance-prices-2024-predictions/) will increase further in 2024. As a result, the number of Americans driving without [car insurance](https://money.com/best-auto-insurance/) is also on the rise, according to [J.D. Power](https://www.jdpower.com/business/resources/auto-insurance-premiums-spike-some-american-drivers-choose-risk-being-uninsured). "The overall trend over the last two years is for more Americans to drive uninsured as premium increases are bumping up against strained household budgets," says Stephen Crewdson, a senior director of insurance intelligence group at J.D. Power. To put it bluntly, it's a horrible idea to go without car insurance. Auto repairs and medical bills can be extremely expensive if you get in an accident without insurance, which makes forgoing coverage ill-advised. Driving an uninsured vehicle is also usually illegal, and you could find yourself in serious legal and financial trouble if you get pulled over or end up in an accident. Offenders usually have to pay a fine of $1,000 or more. Depending on the state you live in, your license or registration could be suspended if you're caught operating a car without insurance, and vehicle impoundment is even possible. You may also have trouble getting [affordable auto insurance](https://money.com/best-cheap-car-insurance/) in the future because you'll have a coverage gap in your record. "Insurance is something that you buy for the unexpected," says Todd Greenbaum, president of Input 1, a provider of digital payment and billing services to the insurance industry. "There's no good reason to go without it. I understand that people financially struggle, but the better option always is to find a way to buy insurance within your budget as opposed to foregoing it entirely." ## Protect yourself and your car with Auto Insurance ### See if you can save on your car insurance policy. Click your state to get started. [View Rates](https://money.com/pr/x817a769370a?ap_referrer=%2Fwhat-happens-dont-buy-car-insurance%2F) ## What happens if you don’t have car insurance A significant portion of American drivers are uninsured. The number of households that own a vehicle and report not having insurance was 6.2% in January, which is an increase from 5.3% in the second half of 2022, according to J.D. Power. People who drive without insurance could experience some of the following consequences: ### Expect to get hit with a fines In all but a few states, auto insurance is required by law at [minimum liability](https://money.com/what-is-liability-car-insurance-coverage/) levels. Fines can exceed $1,000 if you're found in violation of these laws. "First and foremost, there would be the legal consequences," Greenbaum says. "If you don't have auto insurance, you're going to be breaking the law, and that can lead to hefty fines." ### Legal trouble can turn more serious Authorities can charge you with legal offenses if an officer finds that you can't provide insurance upon their request after a speeding incident or a car accident. Stuart Winchester, CEO of the insurance shopping startup Marble, says your vehicle could be impounded, which is common in states including California. "That's definitely on the table," he says. "You would have to pay for the towing and pay for the fees to have it impounded and then released." ### Driver's license or registration could be suspended There's also a good chance that your license or registration (and possibly both) will be suspended if you're found violating state insurance requirements. You likely won't be able to resolve the situation until you have proof of insurance, and in some states, you may not be able to get your license back for a year. "Think about it: If you need to drive to go to work, or you're a parent and you need to drive and pick up your child, or take your child to school — I mean, these are significant impairments to your ability to live your daily life," Greenbaum says. In serious cases with repeat offenders, driving without a license can even lead to jail time. ### Getting car insurance in the future will be more expensive If you have a lapse of car insurance, you could face consequences even if you don't get caught. With a coverage gap in your insurance history, you'll probably have to pay higher premium when you try to get coverage again in the future. Also, drivers who have their licenses suspended usually need to file SR-22 forms with their state verifying they have minimum liability coverage. If you need an SR-22 for auto insurance, you'll probably have to pay a higher car insurance premium. ### Bills can add up after an accident If you don't have car insurance and get in an accident, you could quickly be responsible for tens of thousands of dollars of bills for car repair or replacement, property damage and medical costs. Even though the cost of car insurance has been rising faster than pretty much any other spending category, most people will find that maintaining insurance is well worth it. ## With Auto Insurance, you'll be looking after your car and yourself ### There's a wide range of insurance policies available for you. Find the one that best fits your particular needs today. Start shopping now by clicking below. [View Rates](https://money.com/pr/u901edf57e84?ap_referrer=%2Fwhat-happens-dont-buy-car-insurance%2F) ## What to do if you can't afford your car insurance Instead of driving without insurance, Americans struggling financially are much better off strategizing ways to [lower car insurance premiums](https://money.com/how-to-lower-car-insurance-premiums/) — often by reducing their coverage. Make sure you at least have the minimum amount of liability insurance required by your state, if that's all you can afford. Raising your deductible to a high level like $2,000 is another way to get a cheaper car insurance premium if you're in a pinch. You'll pay more out-of-pocket when you need to use your insurance, but you could always adjust the policy again if your financial situation improves. Later in the year, the pace of car insurance premium increases is expected to finally slow down, according to J.D. Power. "With other inflationary impacts relenting, one would hope more Americans find they can afford adequate auto insurance coverage as 2024 plays out," J.D. Power's Crewdson says. ## **More on Car Insurance** | | | --- | | **Money’s Top Picks** [8 Best Car Insurance Companies of 2024](https://money.com/best-auto-insurance/) [6 Best Commercial Auto Insurance Companies](https://money.com/best-commercial-auto-insurance-companies/) [7 Best Car Insurance Companies in Florida](https://money.com/best-car-insurance-florida/) **Car Insurance Reviews** [CURE Auto Insurance Review](https://money.com/cure-auto-insurance-review/) [AAA Auto Insurance Review](https://money.com/aaa-auto-insurance-review/) [Lemonade Car Insurance Review](https://money.com/lemonade-car-insurance-review/) **Learn More** [How to Lower Car Insurance Premiums](https://money.com/how-to-lower-car-insurance-premiums/) [Tips for First-Time Car Insurance Buyers](https://money.com/tips-for-first-time-car-insurance-buyers/) [How Does Car Insurance Work?](https://money.com/how-does-car-insurance-work/) | ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/what-happens-dont-buy-car-insurance/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Insurance", "item": "https://money.com/insurance/" }, { "@type": "ListItem", "position": 3, "name": "Car Insurance", "item": "https://money.com/car-insurance/" }, { "@type": "ListItem", "position": 4, "name": "What Actually Happens if You Don't Buy Car Insurance?" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/what-happens-dont-buy-car-insurance/#webpage", "url": "https://money.com/what-happens-dont-buy-car-insurance/", "name": "What Actually Happens if You Don't Buy Car Insurance?", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2024-02-22T16:06:19.000Z", "mainEntity": { "@id": "https://money.com/what-happens-dont-buy-car-insurance/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/what-happens-dont-buy-car-insurance/#breadcrumb" }, "dateModified": "2025-04-15T22:20:00.000Z" }, { "@type": "NewsArticle", "headline": "What Actually Happens if You Don't Buy Car Insurance?", "articleSection": "Insurance", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2023/10/News-What-happens-if-you-dont-buy-car-insurance.jpg?crop=0px%2C115px%2C2880px%2C1620px&quality=85", "width": 1012, "height": 569, "caption": "News-What-happens-if-you-dont-buy-car-insurance" } ], "author": [ { "@type": "Person", "name": "Pete Grieve", "url": "https://money.com/author/pete-grieve/", "@id": "https://money.com/author/pete-grieve/#author", "description": "Pete Grieve is a personal finance reporter. 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