What Is the Penalty for Driving Without Insurance?

There are a lot of reasons people consider driving without car insurance: It’s not that big of a deal—I’m not hurting anyone. Nothing bad will happen since I’m a good driver. It’ll save me so much money.

But driving without insurance is a big deal.

You’re risking fines, jail time, and a suspended license or registration—plus having to pay for repairs and medical bills if you get in an accident. That risk just isn’t worth taking.

Still on the fence? Let’s take a look at the real costs of driving without car insurance and what you can do if you’re currently uninsured.  

 

Can You Drive a Car Without Insurance?

Technically, yes, you can drive a car without insurance. You can also stick your hand in a snapping turtle’s mouth or go bungee jumping without the bungee.

Just because you can do stupid things doesn’t mean you should. And driving without insurance is really, really stupid.

That’s because car insurance is required in every single state except New Hampshire and parts of Alaska. There are actual laws against driving without insurance—and actual consequences if you break them.  

 

Is It Illegal to Drive Without Car Insurance?

It most certainly is illegal to drive without car insurance! And we think the reasons for the law are pretty obvious.

States legally require drivers to have car insurance because accidents are expensive. Dig this: In 2019 (the latest data available), traffic crashes cost Americans $340 billion for immediate expenses like car repairs, property damage, serious injuries and fatalities.¹

In fact, someone who is disabled by a wreck will typically face over $1 million in accident-related costs.² Without car insurance to help cover those costs, they’ll be buried under a mountain of bills they can’t afford to pay.

Most people don’t have a million bucks to fork over after an accident. You know who does? Insurance companies. That’s why insurance is so critical—and why it’s required by law in most of the U.S. Its whole purpose is to protect you and people around you from financial ruin after an accident.

 

What Are the Consequences of Getting Pulled Over Without Insurance?

Getting hit with a penalty, that’s what!

How big of a penalty depends on where you live. Each state sets its own laws about how much car insurance you need and what happens if you don’t have it. The one thing all states have in common? If you get pulled over without proof of insurance, you’re in for a headache.

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Now, most states do give you a break for honest mistakes—like if you forgot your new insurance cards back home and just happened to get pulled over that day. You’d probably get a small window of time to show proof of insurance to the proper authorities.

Consequences of Getting Into an Accident Without Insurance

But if you actually lack insurance? You’re going to be facing some pretty hefty punishments. Stuff like this:

Fines 

The fines for driving without insurance vary from state to state, but a typical fine is $500 to $1,000 the first time you get busted. In many states, a second offense can cost you up to $5,000.

The average annual cost of insurance is $631 for liability—so if you have to pay just one fine, you’ve spent just as much, if not more, than if you had just gotten insurance in the first place.³ And for every offense after that, the fine goes up—sometimes to thousands of dollars.

Trust us, there are much easier ways to afford car insurance.

Suspensions

Most states will hit you with suspensions to keep you off the road while you’re uninsured. Here’s what they suspend and why:

• Registration, so you can’t keep driving your uninsured vehicle
• Driver’s license, so you can’t drive any vehicle

Some states may suspend both your license and registration (check out our entire list below). You may even have to return your suspended license plate or driver’s license to the local Department of Motor Vehicles.

Want to reinstate your registration or license? You’ll have to pay for new ones—plus reinstatement fees that can cost up to a few hundred dollars. (Some states, like Delaware, also charge you a fee for every day past a 30-day grace period that your registration is suspended.⁴)

Many states require you to insure your vehicle and get a special document called an SR-22 to prove you’re covered before they’ll reinstate you.

What Is the Maximum Fine for a Conviction of Driving Without a Valid Driver’s License?

Maybe you’re thinking, Even if I do lose my license for driving uninsured, no sweat! I’ll drive without one. Hold up! Didn’t you ever hear that two wrongs don’t make a right?

Driving uninsured is bad enough! The stakes are even higher for driving without a valid driver’s license. Depending on the state, fines range from hundreds to thousands of dollars for the first violation.

Whatever you do, don’t drive with a fake or nonexistent license in Iowa. If convicted there, you could be facing a maximum $2,560 fine!⁵ And if you ever feel like driving on a suspended or revoked license in Vermont, watch out—the fine if you get caught could be up to $5,000!⁶

Impoundment

Typically, the law enforcement officer who catches you driving without insurance can have your car towed away and locked up. And some states allow this even if it’s your first offense.

When you go to get your car back, be prepared to break out your wallet. Most impound lots charge you to release your vehicle—and then charge extra fees for every day it sat in their parking area.

Imprisonment 

That’s right—you can go to jail for driving without insurance. Jail time ranges from a few days to a full year depending on where you live and how many times you’ve broken the law.

As far as we’re concerned, even one day in jail is too many! Plus, you won’t be able to work from jail—so you’ll miss out on paychecks or even lose your job. That will put a ton of financial stress on your family on top of the emotional stress of your arrest.

It’s much easier to learn how to get the right insurance—before you have to learn how to get along with your cellmates.

Penalties for Driving Without Insurance in Each State

In case you’re wondering about your state’s laws, here’s the rundown of penalties for each state:

State	Fines	Suspension	Jail Time
Alabama	$500 to $1,000	Registration and driver’s license	Three to six months
Alaska (in areas where insurance is required)	$500	Driver’s license	None
Arizona	$500 to $1,000	Registration and driver’s license	None
Arkansas	$50 to $1,000	Registration	Up to a year on third offense
California	$100 to $500	Registration and driver’s license	None
Colorado	$500 to $1,000	Registration and driver’s license	Up to a year
Connecticut	$100 to $1,000	Registration and driver’s license	Up to three months
Delaware	$1,500 to $3,000	Registration and driver’s license	None
District of Columbia	$500 for first offense, higher for each subsequent offense	Registration and driver’s license	None
Florida	$500 reinstatement fee	Registration and driver’s license	None
Georgia	Up to $1,000	Registration and driver’s license	Up to 1 year
Hawaii	$500 to $5,000	Registration (after multiple offenses) and driver’s license	Up to 30 days after multiple offenses
Idaho	$75 to $1,000	Registration and driver’s license (on second offense)	Up to six months (after multiple offenses)
Illinois	Minimum $500	Registration and driver’s license	None
Indiana	$500 (on second offense)	Driver’s license	None
Iowa	Possible, if an accident occurred	Registration	None
Kansas	$300 to $2,500	Registration and driver’s license	Up to 6 months
Kentucky	$500 to $1,000	Registration and driver’s license	Up to 90 days for first offense, up to 180 for second
Louisiana	$500 to $1,000	Registration	None
Maine	$100 to $500	Registration and driver’s license	Up to 6 months
Maryland	$150 to $2,500	Registration	None
Massachusetts	$500 to $5,000	Registration and driver’s license	Up to 1 year
Michigan	$200 to 500	Driver’s license	Up to 1 year
Minnesota	$200 to $1,000	Registration and driver’s license	Up to 90 days
Mississippi	$1,000	Driver’s license	None
Missouri	Up to $500	Registration and driver’s license	Up to 15 days
Montana	$250 to $500	Driver’s license on second and subsequent offenses	Up to 10 days on first and second offenses, up to 6 months on third or more
Nebraska	$50 reinstatement fee	Registration and driver’s license	None
Nevada	Up to $2,000	Registration and driver’s license	None
New Hampshire	None	N/A	N/A
New Jersey	$300 to $1,000 for first offense, up to $5,000 for second or more	Registration and driver’s license	Community service
New Mexico	$300 for first offense, up to $1,000 for second or more	Registration and driver’s license	Up to 90 days for first offense, up to 6 months for second
New York	Up to $1,500 and a $750 reinstatement fee	Registration and driver’s license	Up to 15 days
North Carolina	$50 to $150	Registration and driver’s license	Up to 45 days
North Dakota	$150 to $1,000	Registration and driver’s license	Yes
Ohio	$100 to $600	Registration and driver’s license	None
Oklahoma	$163 to $213	Registration and driver’s license	Up to 30 days
Oregon	$130 to $1,000	Registration and driver’s license	None
Pennsylvania	Minimum $300	Registration and driver’s license	None
Rhode Island	$100 to $500 (first offense), $500 (second offense), $1,000 (third or more)	Registration and driver’s license	None
South Carolina	$600 uninsured motorist fee	Registration and driver’s license	Possible
South Dakota	$100	Registration and driver’s license	30 days
Tennessee	Up to $300	Registration and driver’s license	None
Texas	$260 (first offense), $470 (second or more)	Registration and driver’s license	None
Utah	$400 for first offense, $1,000  for further offenses	Registration and driver’s license	None
Vermont	Up to $500	Driver’s license	None
Virginia	$500 uninsured motor vehicle fee or $600 noncompliance fee	Registration and driver’s license	None
Washington	Minimum $550	Driver’s license	None
West Virginia	$200 to avoid suspended license on first offense only	Registration on a second or further offense, and driver’s license	15 days to 1 year possible
Wisconsin	Up to $500	Registration and driver’s license if you’re in an accident	None
Wyoming	Up to $750 for first offense, $500 to $1,500 for further offenses	Registration and driver’s license	Yes7

Keep in mind, fines and reinstatement fees will be way higher for additional offenses. Plus, states that don’t jail first-time offenders may arrest you if they catch you driving uninsured again. And that’s just for driving around! Heaven help you if you get into an accident—especially if it’s your fault. In fact, accidents are the reason it’s illegal to drive without insurance.

 

What Are the Consequences of Getting Into an Accident Without Insurance?

Oh, man, this is a nightmare. You’ll face your state’s penalties for driving without insurance—and then some. (Most states have laws that make the punishment for driving uninsured worse if you get in a collision.) 

Then you deal with the accident itself.

When the Accident Is Not Your Fault

The at-fault driver will probably have to pay for the damage to your car and any medical treatment you need—as long as they have insurance. (If they don’t, you’ll both be in a mess.)

There’s a catch, though: Some states have no pay, no play laws which come into play specifically in accidents involving uninsured drivers. These laws ban you from suing the other driver or their insurance company for noneconomic damages, like pain and suffering, after an accident.

Some states’ no pay, no play laws also count against economic damages. So you can’t sue for medical bills, car repairs or lost wages because you missed work due to an accident.⁸ 

In these states, you’re at the mercy of the other driver’s insurance company. You may even have to pay a certain amount out of pocket before the insurance company will help out, or before you can sue for economic damages (if your state allows that). You’re also on your own for expenses their insurance won’t cover.

When the Accident Is Your Fault

Again, you’re already facing a fine, suspensions and possible jail time for driving without insurance. As for the accident . . .

The person you hit might have uninsured motorist insurance to help them pay for repairs and medical bills. That said, if the damages cost more than their policy limit (aka how much the insurance company will pay), you’ll be responsible for the rest.

And if they don’t have uninsured motorist coverage? That’s really bad news—for you! The other driver or their insurance company can sue you for any and all damages you caused. If you don’t cough up, courts can garnish your wages until your debt is paid.

Clearly, driving without car insurance is stupid, and it’s freaking expensive if you get caught. The fact of the matter is, you can’t afford not to have car insurance.

 

Penalties for Driving Without Insurance Can Vary by Situation

There are three basic situations where you can get caught driving without proof of insurance—and the worse the violation, the stiffer the penalty. Let’s look at each one, from least to most serious.

• You truly have insurance, but you left the proof at home. If your dog ate your insurance card or some similar excuse, you’re going to face a little something known as administrative violation. Strictly speaking, it’s a paperwork oversight. You might get a fine, but you can probably get it dropped by providing the court with proof of insurance once you have it.

• You actually don’t have insurance. Bad move. In most states, getting caught driving without insurance will result in a short suspension of your driver’s license. You’ll also probably need to pay a fine. And when you go get car insurance after your scary run-in with the law (which you better do!), you can expect the premiums to be higher than they’d have been if you’d signed up for coverage in the first place.

• You not only lack insurance, you also get into an accident. This is the worst outcome. If you looked your state up in the chart above, you may have already seen how badly this can go. Again, we listed the penalties for just getting pulled over without insurance—but with an accident, it’s possible you might also be forced to pay for any injuries or damages out of your own pocket. And those costs can be ginormous.

 

Tips for Avoiding Penalties

The good news is, it’s super easy to avoid fees and jail time for not having insurance. Here’s what you need to do:

Store proof of insurance in your car.

Most insurance companies will send you multiple copies of your insurance card. It usually lists the company name, your name, the make and model of your vehicle, and even coverage limits and other policy details. Putting a copy in your glove box and another in your purse or wallet is a great idea. And some insurance companies have digital proof of insurance you can keep on your phone as well. Your excuses are over. Get this done!

Never cancel one policy until you’ve bought another to replace it.

Shopping around for a better rate? We get it. (And we have thoughts for you below about how to get that done.) But you never want to cancel your current policy until you confirm that that sweet new replacement policy is in force.

Just look at what happened to one of our fans from the Ramsey Baby Steps Community Facebook group. When Rose Mary’s van broke down, she knew the repairs were going to be a while. So she canceled the insurance on it and got insurance on a short-term replacement vehicle, planning to reinsure her van once it was back in operation. Then the unthinkable happened. “I procrastinated on switching over the insurance and removing the van from nonoperational status. Since the registration was [still current], I thought I could drive it without anybody caring.”

Wouldn’t you know it—during that little lapse in coverage, Rose Mary was pulled over for a traffic violation. And the cop who stopped her did care that she had no insurance. “I thought I was saving myself some money! But instead, I paid quite a bit on a ticket, depleting my emergency fund! And I have no one to blame but my own corner-cutting, procrastinating self.” That’s rough Rose Mary! Y’all, don’t repeat her mistake. Traffic stops have a way of happening during the briefest lapses in coverage. It’s better to have a few days of double coverage, than even a single day with none.

Keep up on insurance payments.

You’re an adult, so this one should be obvious. In case not, though, running behind on your car insurance premiums can cause your policy to be canceled. You do not want to learn you’re not covered right after a car accident.

Are You Paying for the Right Insurance?

Your insurance shouldn’t be a guessing game. Take the Coverage Checkup to get a personalized action plan that guides your next steps so you can confidently check things off as you get covered.

 

 

Getting the Car Insurance You Need

Believe it or not, you can find affordable car insurance. Maybe it’s as simple as making small lifestyle changes (like trimming down your cell phone plan or eating out less) so you’ve got money to spend on insurance.

Or maybe you’re in a truly tough financial situation, and the thought of buying car insurance just sounds overwhelming. Listen: It doesn’t have to be that way! You can get rid of financial stress and take control of your money.

In the meantime, you need car insurance to protect yourself so that one accident or traffic stop doesn’t ruin your financial future.

Here’s the great news: Liability (the type of insurance required by state law) is generally one of the cheapest car insurances—and one of the easiest to get! That’s your first step. Then to truly protect yourself, you’ll need the right kinds and amount of coverage. Trust us, getting covered is way more affordable than paying a long list of fines, damages and reinstatement fees.

Not sure how much coverage you need? Not to worry! We have a whole network of RamseyTrusted pros who can help. They’ll look at your situation and shop around with multiple insurance carriers to get you the best coverage based on your car and financial goals. Best of all, they do this at no extra cost to you—so you can just pay your insurance premium and enjoy the open road.

Find your auto insurance agent today!