Why You Can't Cut Auto Insurance From Your Budget

Like most people today, you’re probably looking for ways to trim your budget. Some cuts make sense, like dining out and gourmet coffee. But cutting auto insurance doesn’t and here’s why.

State Laws Won’t Let You

Every state has laws regarding auto insurance and if you don’t carry the minimum amount required, you’re breaking the law. It’s that simple. Those laws may even require that drivers show proof of current auto insurance coverage to anyone requesting it. Even if you think you can avoid an accident, you won’t be able to avoid a random check point.

Surprise Auto Insurance Verification

If you live in a state that conducts unannounced auto insurance verifications, there will come a day when you’re mailed a letter demanding that you provide proof of having auto insurance. If you cannot show proof of having valid coverage on the day the letter was sent, you’ll likely be in violation of the law and subject to penalty.

Stiff Penalties

Driving without auto insurance is a serious matter which is why penalties for not having it are severe. If you’re caught, you could be fined, or have your license suspended, or you could go to jail. You could even have your license plate and your car impounded until you pay your fine. If that happens, you’ll have to pay even more to get your registration reinstated.

If you don’t have insurance and you get into an accident, the penalties may continue. Again, all states are different, but you may be required to maintain proof of insurance such as a bond. Should the bond expire or be cancelled, more penalties may be imposed.

Auto insurance is expensive, but having to pay out of pocket to repair damage you caused in an accident will cost even more. Remember, auto insurance protects you and it can’t do its job if you don’t have it.

Here’s something else to keep in mind. Once you’re caught not having auto insurance, you’re considered a higher risk driver, even if you’ve never been in an accident. As a high risk driver, you’ll pay higher rates for auto insurance.

Auto insurance isn’t a right or a privilege or an option—it’s the law. Not having it will always cost more than it costs to have it. So do the right thing and keep auto insurance in your budget!