Risks of Driving Without Car Insurance

In most states, including New Jersey, a minimum level of car insurance is required by law. If you are leasing or financing your vehicle, your lender or leasing company may also require a specific level of coverage. If you choose to drive uninsured in a state requiring it, you risk fines, license and registration suspension, time in jail, and vehicle impoundment.

Failure To Obtain Auto Insurance Carries Significant Financial Risk

Beyond the legal ramifications, failure to obtain auto insurance carries significant financial risks. One serious accident involving injuries could generate costs in the six-figure range. If you are sued due to an accident, you could lose your home, savings, and possibly all your assets. Even a minor incident could leave you liable for costly repairs.

While meeting the legal requirements for automobile insurance is clearly in your best interest, the minimum amount of required coverage is often not sufficient for drivers who wish to mitigate risk and be comfortably protected. In fact, homeowners with savings funds, retirement funds, and other assets should consider liability coverage above and beyond the limits available through car and homeowners insurance policies. Supplemental liability insurance is available through umbrella policies.

Minimum Auto Insurance Requirements Do Not Include Collision or Comprehensive

The minimum auto insurance requirements in New Jersey also do not include collision or comprehensive coverage. Without collision coverage, you will be responsible for damage to your vehicle as the result of a collision with another car or an object. Without comprehensive coverage, you will be responsible for damage or loss of your vehicle due to theft, vandalism, fire, flooding, or collision with an animal.

Before getting behind the wheel without insurance, you need to consider that you are risking a life-altering consequence. Simply put, it is not worth the risk.

Read information about what you have to do to insure a new car and common mistakes when purchasing insurance. You can also learn about young drivers and why you should switch your insurance company to Plymouth Rock.

Call 855-993-4470, get your free quote online, or find an agent to learn about the risks of driving without auto insurance in New Jersey. If you need additional information it can be found on our Contact Us page.