{"id":3931,"date":"2023-10-31T10:00:00","date_gmt":"2023-10-31T10:00:00","guid":{"rendered":"https:\/\/businessyield.com\/ins\/?p=3931"},"modified":"2023-10-30T16:48:28","modified_gmt":"2023-10-30T16:48:28","slug":"can-you-drive-without-insurance-all-you-need-to-know","status":"publish","type":"post","link":"https:\/\/businessyield.com\/ins\/car-insurance\/can-you-drive-without-insurance-all-you-need-to-know\/","title":{"rendered":"Can You Drive Without Insurance? All You Need To Know"},"content":{"rendered":"

Can you drive without insurance?<\/p>

Well, nearly one in eight drivers do not have car insurance, according to a 2021 report from the Insurance Research Council. And if you are thinking about joining this not-so-exclusive club, DON’T! <\/p>

It is a terrible idea.<\/p>

Not only will you face legal consequences, such as fines and even jail time, but you\u2019ll also face insurance consequences. And if you cause a car accident that results in property damage or injuries when you\u2019re driving without car insurance, the financial fallout can be devastating.<\/p>

Every state has some form of \u201cfinancial responsibility\u201d law. This means you must have a way to pay if you or someone driving your car causes an accident. One less-than-practical way to satisfy financial responsibility is to fork over a bond with the state that can run upwards of $50,000. <\/p>

Why do this, though, when the easiest and most affordable way to satisfy financial responsibility is to buy car insurance?<\/p>

Advantages of having auto insurance<\/strong><\/h2>

Auto insurance offers a layer of protection for your assets. When you finance a car, your lender might require comprehensive and collision insurance as part of your loan contract. They want you to protect the automobile, which is their financial asset, with sufficient coverage.<\/p>

You’ll want to protect yourself and your assets with enough coverage, as well. According to The Balance, industry professionals such as your state’s insurance commissioner\u00a0recommend a minimum<\/a>\u00a0of $100,000 per person of bodily injury protection and $300,000 per accident. <\/p>

Most at-fault car accidents cost far more than the minimum limits mandated by many states, such as California, where this limit is only $5000.<\/p>

What is the least amount of car insurance I need?<\/strong><\/h2>

Every state has its own requirements for what kind of car insurance residents should have and how much of it they should carry. <\/p>

Nearly every state requires drivers to have some kind of liability insurance. Liability car insurance pays for others\u2019 medical costs, lost wages and damage you cause in a traffic-related accident. It won\u2019t pay for your own medical or car repair costs.<\/p>

Depending on where you live, you may also have to pay for the following:<\/p>