Allowing insurance companies to overcharge you for SR-22 vehicle insurance coverage is the “hidden expense” of driving without insurance, and it can cost you $10,000 or more in extra rates until your points expire.
It’s not worth it! Two states where driving without insurance is… legal?
There are two states in the United States where you can lawfully drive without insurance.
• Virginia waives the state minimums if you either a) pay a $500 Uninsured Motorist Surcharge or b) pay a $500 Uninsured Motorist Surcharge.
The fee every time you renew your vehicle registration, or b) post a cash bond, i.e., a large pile of cash to ensure you can pay for an accident out of pocket.
According to NH.gov, you are not required to get auto insurance in New Hampshire if you can “show that you can furnish adequate monies” to cover the costs of an at-fault accident. Fortunately, very few people have chosen the twisted reasoning of claiming they are “too rich to pay for insurance” – New Hampshire has one of the lowest rates of uninsured drivers in the country, at 6.1%. Even if you live in one of these states, you will still need automobile insurance for the reasons listed below.
2. To make amends for an accident you caused.
The government mandates car insurance because seat belts are mandated; both devices protect us from disastrous scenarios. Assume you are in a vehicle accident.
You attempted to exit Chipotle at rush hour but failed to notice a car rushing in the right lane, causing them to collide with you. It’s a genuine blunder that occurs daily.
Both vehicles have been destroyed, and the other driver and her passenger have suffered neck injuries. In an uninsured environment, the other motorist and her passenger might sue you for 100% of their medical expenditures, loss of use, vehicle damage, and other damages. You’ll be lucky if your entire bill is under $100,000.
That’s one pricey burrito – and we haven’t even accounted for the costs of repairing or replacing your vehicle. It’s crucial to note that everyone loses when an uninsured motorist causes an accident – not just the uninsured driver.
• Because the accident victim cannot access the funds they require, their debt with interest accumulates (and pulverizes their credit score).
• When personal injury legislation is involved, and some ambulance chasers triple their victim’s entitled recompense, the at-fault motorist must wait for the financial axe to fall (and their commission).
• The government must devote trial time, public counsel, and tax resources to the drivers’ impending legal battle.
They, too, must pay for damage to public property, such as fences and guardrails, out of pocket. The only people who benefit from an uninsured car collision are the attorneys.
Everyone else has lost tens of thousands, if not hundreds of thousands, of cash, and at least one person’s life is effectively gone. The problem is that if the uninsured driver had merely paid $1,000 for 50/100/50 insurance coverage ($50,000 bodily injury per person, $100,000 bodily injury per accident, $50,000 property damage liability), the entire issue might have been averted. This is why governments require insurance.