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Why Not Having Car Insurance Is Bad


Not having car or vehicle insurance or allowing your car insurance to elapse is a bad thing. There are several legal and financial punishments for doing so. If you have a car, it is important that you have car insurance because the consequences of not having one will be severe. It is even tantamount to having your home electricity cut-off!

In general, the absence of car insurance can give you these consequences:

Your privilege of driving might be taken away

You will be charged with legal fines or even imprisonment

It causes great monetary burdens and bankruptcy

The dealer might repossess your vehicle

Revocation and suspension of your driver’s license is the first consequence of not having car insurance in majority of states. This is done so that motorists and people on the road can be protected against loss of property and other personal losses arising from accidents involving vehicles. Insurance is even required for all vehicles that must be registered and operated on public highways. In addition to the smooth and safe driving capabilities of a car, another requirement is that it should also possess insurance. Insurance is required even if a car is not being driven or malfunctioning. Failure to acquire one can make you lose your license plate and suspension of your driver’s license. When an officer catches you without it, you can be arrested and tried in court.

When buying a car from a dealer, you will be normally asked to sign a contract that obliges you to have insurance for it to some degree. This prevents loss on the part of the dealer from the involvement of the vehicle in accidents since ownership is theirs until full payment is made. Absence of insurance can force a dealer to repossess the car through virtue of your failure to fulfill the contract.

During accidents that cause damage to property or another person, absence of insurance will have repercussions on the part of vehicle owners. Implemented consequences may remain for years. Without insurance, you will be made liable for repairs of any property that might be damaged. You will also cover medical costs of those injured. When accidents are severe, you will be charged with bills that you cannot afford. This will mean great financial obligations on your side and even bankruptcy. These financial obligations may remain to haunt you for years. Results and consequences of not obtaining car insurance far outweigh the cost of obtaining one. That is the reason everyone with a vehicle should always get car insurance.