What happens if you caused the accident?
If you’re at fault for a car accident, the legal consequences of driving without car insurance largely depend on your state’s insurance requirements.
If you caused the accident and carry insurance, your insurer will likely increase your car insurance premiums. Depending on the accident’s circumstances, you may get a ticket for failure to control your vehicle, running a red light, or speeding.
But if you’re the at-fault driver and don’t have car insurance, several financial and legal consequences could occur:[1]
New Hampshire is the only state that doesn’t require car insurance. Instead, New Hampshire drivers can opt out of buying coverage if they can prove they meet the state’s financial responsibility requirements in the event of an at-fault accident.[2]
Consequences in a no-fault state
After a car accident in a no-fault state, the involved parties file injury claims with their own insurance companies and property damage claims with the at-fault party’s insurer. If you’re an uninsured motorist, you can’t file a claim, but insured drivers will.
No-fault laws limit the number of lawsuits stemming from a car accident. Someone can still sue you after an accident in a no-fault state, but the suit typically has to first meet monetary thresholds your state establishes.[3]
But if you don’t have insurance in a no-fault state, your options for financial recourse are limited. Not only do you have to pay for your own medical expenses, but depending on your state’s laws, the other party may also be able to sue you for damages and excess injuries.
Consequences in an at-fault state
In an at-fault state, if you cause an accident and don’t have insurance, the other driver may be able to sue you for injuries and damages. Without insurance, you may not be able to pay their medical and repair bills out of pocket, so they can pursue legal recourse to recover their damages. If you had insurance, your liability coverage would pay for their damages and injuries, which could prevent a lawsuit altogether.
Another benefit of having car insurance is if someone sues you, your insurance policy can at least partially cover your legal bills.[4] If you don’t have insurance, you won’t have that backup, and you’ll have to spend your own money on court costs.
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