Last Updated on Mar 7, 2020 by James W
For many people, car insurance can be a difficult cost to afford. This can be especially true for those with higher premiums due to accidents and moving violations. Driving, however, is often a necessity for anyone to get to work, school, or even the grocery store. It can often be tempting to drive with no insurance. However, this option is one that can be far more costly than the premiums ever could be.
Gaps in Coverage
Any gaps in car insurance coverage can cost a driver. If the car insurance policy lapses, for any reason, the next time insurance is purchased, the premiums will be higher. Regardless of the reason, letting a car insurance policy expire can create a gap in coverage. This gap will place the driver in a higher risk category. This causes the premium amounts to be higher for any insurance policy. This makes it important for all drivers to maintain continuous coverage while they drive to protect against this raise.
On the positive side of this, once a driver maintains a good driving record for a period of time, those premium rates will come down as their risk level drops. Fortunately, companies, such as EINSURANCE, offer cheaper insurance rates that can make it easier for anyone to get proper coverage for their vehicle. With safe driving habits and continuous coverage, it will not take long to bring those premium rates back down after a gap in coverage.
In the state of Illinois, all drivers are required to carry certain levels of car insurance before operating a motor vehicle. They are required to have liability coverage that covers any bodily injury or property damage caused by the negligent operation of a vehicle. Each driver must maintain a limit of $25,000 per person per accident and $50,000 total per accident for bodily injury and $20,000 per accident for property damage. Drivers must also carry uninsured and underinsured motorist bodily injury coverage. This insurance covers the injuries of the driver in cases where the at-fault driver had little or no insurance coverage.
Failure to maintain this insurance can bring serious legal consequences for a driver. If a driver is found to be driving without car insurance, they can face fines and license suspension. The mandatory minimum fine for a first offence violation is $500 with a maximum of $1,000. The driver will also be responsible for all court costs. There is also a three-month suspension of their driver’s license with a $100 reinstatement fee. Additional offences can bring much higher fines and suspensions. Those who are involved in an accident without insurance can face a Class A misdemeanour.
Costs of an Accident
Car insurance provides protection for a driver and helps to cover the costs of an accident where they are found to be at fault. If the driver does not have insurance, they will be required to pay for all damages out of pocket. Damages to another car can range from hundreds to even thousands of dollars depending on the extent of the accident. If there were injuries, the at-fault driver is responsible for all their medical costs, as well as any lost wages, pain and suffering, or costs of continued care. Serious injuries can lead to thousands to even tens of thousands of dollars in costs.
If the at-fault driver does not have the ability to pay for these damages, they can be taken to court for these costs. In court, the uninsured driver could face wage garnishment or even liquidation of personal property to pay for these damages. This is in addition to the legal costs for not having insurance while driving.
Regardless of the cost of car insurance premiums, driving without insurance can be far more costly than the few dollars saved by not paying for the policy. In addition, it could even render a driver unable to drive for long periods of time due to license suspension. It just makes more sense to stay protected and maintain a car insurance policy before getting behind the wheel.