Don't Drop Car Insurance

In these tough economic times, you may be tempted to skip car insurance coverage. Don’t. We’re all feeling the squeeze, but neglecting required car insurance could be a huge mistake.

All states have minimum car insurance laws. You might think you can get away without it if you can just avoid accidents, but you can’t be sure. Driving without car insurance is a crime. Most states have laws requiring you to show proof of insurance whenever it’s asked for. Often this includes random checkpoints that will catch you whether you’ve done something wrong or not.

Many states even have surprise car insurance inspections. In these, you have to mail in proof of insurance showing you were covered on the day they sent the letter. Once you’re caught without insurance, it’s too late.

Penalties for failing to maintain car insurance can range from a fine, to a suspended license, to jail time. If you get caught, your car or license plates could be impounded until you can pay the fine. Then, you have to pay another fee to reinstate your registration. It’s quite possible that all of these penalties could happen at once.

If you’re in an accident, there could be strict penalties imposed on you when you try to drive later. In addition to the problems described earlier, you’ll probably have to continuously maintain a bond or other proof of car insurance. If this bond expires or is cancelled, you’ll be subject to penalties again. States such as Ohio require you to keep this bond on file with an Ohio insurance company—even if you move out of state