Two Billion Cars

Auto insurance is one of the most essential entities in our active society. We spend hundreds or thousands of dollars every year for our cars. But, with out insurance there is a huge risk getting behind the wheel because of the outrageous financial cost if an accident where to happen. Here are some dangers of auto insurance lapse.

First, tickets and other criminal fines are one reason to guarantee that your auto insurance is up to date. Every city, state and county has their own local rules and bylaws in held to driving with out auto insurance, most have additional fines and penalties when faced in an accident. You could end up with a criminal record or with sanctions on your driver’s license. Repeat offenders would be in question to license suspensions that could be a few weeks up to a year later – all for not being up to date on your automotive insurance.

The most important to remember is that if your auto insurance has expired and in the chance you where ‘at fault’ in an accident, if the state uses the ‘tort system’ you will be at an incredible amount of financial risk. Since you do not have Bodily Injury Liability coverage, any medical costs for the other people will be passed on to you. If there are four or five people in the other car and they find out you do not have auto insurance they will be calling a personal injury lawyer. You could also lose your property damage liability coverage, which you would be paying out of pocket for the damage of the other vehicle as well.

It is also important to remember that if you already let your insurance coverage expire, you could also lose coverage for any family member in your car. In that case you would be paying for everyone in the other car as well as the family members in your own car. But it is worse if they are not family members in your car, because they could end up suing you to cover medical expenses and for other damages as well. If someone where to pass away in the crash you would be likely to pay for the funeral as well as the lost wages that must be paid out to the family.

As you can see it is always best to pay your auto insurance on time. If you do not you are completely unprotected and at risk of lawsuits and criminal charges. Most insurance companies have automatic payment options that make renewing your insurance completely without being required on your part. Talk to your insurance company today to see what the best option is for you.