5 Reasons Why Driving Without Insurance is a Bad Idea

By: Eric Erickson Friday December 6, 2013 comments

 

During the busy holiday season, the little things can fall through the cracks. Everybody forgets things now and then: misplaced car keys, directions to your aunt Edna’s house. Don’t let forgetfulness turn into a lapse in your auto liability coverage. In the state of Colorado, car insurance is mandatory, and the legal and financial consequences of driving without coverage can be grave. Especially when one phone call to Insurance By Phone can put you in touch with an independent agent that can establish an affordable policy for you today. 

Car insurance is not just your duty, automobile insurance for everyone helps keep the high cost of accidents and the underwritten risk involved to a minimum. That’s the reason there is no shortage of exuberant promises on television and the internet, each one claiming to have the cheapest car insurance. The truth is, auto liability coverage can be very inexpensive for most drivers. Certain high risk drivers may need to find SR 22 insurance, which simply means an additional fee that directly links your mandatory coverage with driver’s license eligibility. Things can get pretty complicated when you get caught without insurance. These are only a few of the reasons why driving without insurance is, quite simply, a horrible idea:

  • It threatens your right to drive and own a vehicle.

When you are pulled over for a traffic violation, or charged with a violation after a collision, being without proof of current insurance coverage will net you an additional charge. Generally, your offense can be mitigated by rectifying the situation and reinstating your coverage. However, if you don’t maintain insurance on a vehicle that you own, you could lose your driver’s license and registration for your vehicle. In Colorado, the penalties for driving without insurance can include a $500 fine, 4 points off your license or loss of license for 8 months or longer for multiple offenses.

  • It can be a very costly mistake. 

When you operate a vehicle, you are legally liable for the consequences of your actions. That means that when are deemed responsible for an automobile accident, your liability coverage kicks in. If you don’t have insurance, you will probably be taken to court so that the victim can recoup damages. If you don’t have enough money to pay for your mistakes, lawsuits can threaten your possessions, including your car or your house. 

  • It is your social responsibility. 

Although we’d like to think that our personal liberties extend to the way we drive, the cumulative effect of auto accidents make insurance a necessity to control cost. Because of this, our liability coverage factors in the “shared risk” of so many drivers on the road in order to keep mandatory coverage affordable for all. When you cause a collision without auto liability coverage, you put others at risk, leaving them with repair charges and potentially, medical bills. 

  • It is your legal liability. 

In the eyes of the law, you are responsible for the damage you cause, in or out of a vehicle. Just as homeowner’s insurance protects you from damage caused to other individuals inside or outside of your house, your automobile liability coverage protects you from the harm caused by you and your vehicle. In addition to fines and the loss or suspension of your driver’s license, you could face jail time, probation, and community service for continued offenses.

  • Liability covers only the basics. 

Liability insurance is the bare minimum required by the state. Your coverage limits must include $50,000 per accident for bodily injury, $25,000 per person for bodily injury, and $15,000 for property damage. You have the freedom to select additional coverage for your vehicle, including collision coverage that covers damage to your car in an accident, or comprehensive coverage that covers damage or loss of your car due to weather events or theft. You can also choose to include medical coverage, featuring “no-fault” coverage for medical expenses, or uninsured/underinsured motorist insurance that kicks in after an accident where the at-fault party lacks the requisite coverage.

If you fail to heed these warnings and drive without insurance, the results can be devastating, but it doesn’t mean you can’t do the right thing next time. If you need SR 22 insurance, you may have to pay a little bit more, but the safety and security you’ll feel will make it worthwhile. As time passes and your safe driving keeps you out of accidents, your rates will eventually drop and you will no longer need the SR 22. Don’t let another day pass wondering whether or not you need auto coverage. Call Insurance By Phone and find affordable rates that can get you back on the road.

 

Eric Erickson

About the Author: Eric Erickson

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