As a driver, why is it a big mistake for you to drive without car insurance? For beginners, driving without insurance is a big mistake because first of all driving without insurance is illegal in 50 states. When you are caught driving without insurance you will most likely be paying a large amount of fine and you will possibly also have to do some jail time. In some states when caught driving without insurance your car would automatically be impounded, and in other states you would pay a fine ranging from $500 to $5,000, and a year of serving in jail.
Next is aside from paying large amount of fine and doing some jail time, when you drive without insurance and you got yourself involved in an accident and you are also at fault meaning you caused the accident, you would be paying for car damage to both your car and the other car, in case of injuries hospital bills of you and your passengers, and the other driver and his passengers. Aside from paying car damage and bodily damage to the people involved in the accident, you would most likely be paying for the suffering and pain, loss of enjoyment of life, funeral expenses if proven that you are the cause of wrongful death, and others.
Driving without a license is a costly thing to do; you pay fines, pay property damage, bodily damage, and others. And yet you will still pay some more if in case you get a loan for a car. The lender financing the vehicle will require you to have insurance, this is for the lender to ensure that he still has some money to take from the insurance company in case you got to an accident and the car is a total loss. If also you cancel your car insurance, the car insurance company will inform your lender, and your lender will find you a new car insurance company. Note that these would mean a bigger payment to do. And when you cancel your car insurance then you got into an accident, you would still be paying for your car even though you are not able to use it anymore. So as a summary you’d rather purchase car insurance for yourself rather than you paying all the above mention consequences of not having car insurance. It is simply put, wiser to have car insurance than take the risks of driving without them.