What happens if you drive without insurance?

If you are in New Jersey, for starters, you’d be receiving a ticket and having your license suspended! Driving without auto insurance in the Garden State is illegal in order to protect the assets of both drivers and pedestrians. This is not the case with every state in the country however, so let’s discuss what would happen if you drove without insurance in one of the two states (New Hampshire and Virginia) where it is legal.

First and foremost, you and others would be vulnerable. Every time you enter a motor vehicle, take a walk down the street, or even leave your car parked in the driveway you are risking your property. You can be sitting on your couch while a tree falls on your car and now you’re on the hook for the repair or a new car!

If you get into an accident without insurance, there can be major financial ramifications for you even if it is not your fault. New Jersey is a no fault state, meaning that in the event of an accident, both parties use the coverage from their insurance first. Seeing as you do not have insurance in this scenario, the other driver will be forced to cover damages by using uninsured motorist coverage on their policy first. This means that the risk of lawsuits arising from any accidents is where driving without insurance can really ruin your future.

In the event of a lawsuit, drivers are typically covered up to a certain amount by their insurance companies. If the amount won by the other party in a lawsuit exceeds the limits of their uninsured motorist coverage, your assets can be taken, future wages can be garnished, and bank accounts can be emptied to cover the difference. In certain states, if you cannot afford this excess amount, expect to be additionally ticketed and have your license revoked. You will be living your life with this potentially monumental financial burden, meaning you will have problems getting loans from financial institutions and lease agreements from landlords when they see that you owe potentially millions from the lawsuit. You could be regretting the decision to forego insurance in order to save a little extra money for the rest of your life!

In order to protect your assets and potentially your future earnings, getting auto insurance is an easy decision.