Driving Without Valid Insurance: State Laws

In every state, drivers must prove they can pay for the costs of a motor vehicle accident. These laws are sometimes called financial responsibility laws. While not all states specifically require drivers to carry liability coverage from an insurance company, they all require some form of proof of financial responsibility.

If you're pulled over by a police officer for a traffic violation, not having adequate insurance can make an already unpleasant situation even worse. Driving uninsured adds another layer of repercussions on top of why the officer stopped you in the first place.

Some states do not specifically require motor vehicle drivers to show proof of liability insurance to comply with financial responsibility laws. In these states, other acceptable forms of proving responsibility include:

• Self-insurance certification, which demonstrates financial means for potential liabilities without traditional insurance
• Certificates of deposit
• Surety bonds

Do All States Require Auto Insurance?

Laws in most states differentiate between driving a vehicle that is not insured or without adequate financial responsibility, and driving a vehicle without proof of insurance or driving with expired insurance.

Tickets for expired insurance: Lapsed policies can result in a ticket and a fine. If you missed a payment or forgot to renew your policy, you may be saved by a grace period. This varies by state but is typically between 10-20 days. Most state laws require auto insurance companies to give notice before canceling your policy. Avoid this type of citation by ensuring your insurance is up to date.

Tickets for no proof of insurance: Police can cite you if you don't have proof of your policy on hand, even if it's active and in good standing. Change out your insurance cards regularly and keep a digital copy if possible. Most states allow electronic proof of insurance, so you don't need to have the paper copy on you if the digital version is readily available on your phone.

Each state has its own rules and penalties for uninsured drivers. Check with your state's Department of Motor Vehicles (DMV) or use the table at the end of this article for details.

Penalties for Driving Uninsured

Across all states and D.C., penalties for a first offense of driving without insurance range from a $100 fine to a one-year driver's license suspension. While penalties for driving without insurance vary by state, there are some common consequences:

• Additional penalty assessment and surcharge fees
• Driver's license suspension
• Vehicle registration suspension
• Vehicle impoundment
• Requirement to file an SR-22 form

An SR-22 form is an official document confirming you have at least the minimum insurance coverage required by your state. They are typically required for high-risk drivers who have committed certain traffic violations. Some states require SR-22 only if you cause an accident while driving without insurance. Others impose it simply for driving uninsured.

Other violations necessitate an SR-22, including driving under the influence (DUI) and accumulating too many driver's license points. Filing an SR-22 form can be costly and typically involves a filing fee. Since it signifies a higher level of risk, you can also expect your insurance premiums to increase.

If you need SR-22, contact your insurance company for assistance.

Subsequent offenses incur higher fines and further restriction of your driving privileges, like a longer license suspension period of time, or even revocation or cancellation. Repeat offenders can face jail time.

What if I'm in an Accident?

The consequences of driving without valid insurance are even more severe if you cause a car accident. If you are at fault for the collision, you are responsible for any injuries and property damage resulting from the accident. You will have to pay for these costs out-of-pocket without an adequate insurance policy to cover them.

Without insurance to cover accident losses, the injured party may take legal action to recover damages. This is usually in the form of a lawsuit against the uninsured motorist.

If you are in an accident while driving uninsured but not at fault, you may not be able to collect losses for any vehicle damage or other losses. Some states have “No Pay, No Play" laws that limit the compensation uninsured drivers can get from an at-fault driver. States that use these laws are:

• Alaska
• California
• Indiana
• Iowa
• Kansas
• Louisiana
• Michigan
• Missouri
• New Jersey
• North Dakota
• Oregon

Confused by Financial Responsibility Laws? Get Legal Help

The penalties for driving without enough car insurance can be steep. You can face a hefty fine, and even lose your driver's license. If you've been cited for violating a financial responsibility law, you have options.

You can speak with a local traffic ticket lawyer to learn more about the best next step for your circumstances. An experienced lawyer can review the details of your ticket and your state's financial responsibility law to help you put up the best defense possible. This can save you a hefty fine and increased insurance rates. Depending on your situation, it could even save your license and keep you out of jail.

Sufficient Insurance and Financial Responsibility: State Laws

Below is a list of financial responsibility laws for each state and the District of Columbia.