What happens if i drive without insurance

One in eight—that’s how many drivers were reported as uninsured in 2019, according to an

Insurance Research Council (IRC) study. If you ask us, that’s one too many risks to add to everyday driving challenges.

Why? We’ll fill you in. 

What happens when you get caught driving without insurance

Countless road scenarios require proof of insurance, like getting pulled over by authorities for a burnt out taillight. Or if you were in an accident and needed to provide insurance information to involved drivers.

Say a scenario like this happens, and you don’t have insurance. What happens? Well, for starters, it’s illegal to drive without insurance in many states. And although the consequences of driving without insurance vary from state to state, generally speaking, you’ll likely be faced with fines and fees that cost more than most car insurance premiums. 

What else can happen if you get caught driving without insurance? Beyond fines and fees, most people don’t realize that you could face a registration or license suspension and possibly even jail time.

For example, in Arizona, for a first-time offense, a driver will be fined $500 and have their license suspended for three months. Future crimes can result in more significant fines (up to $1K) and longer license suspensions (up to a year).

You aren’t really saving money driving without car insurance

Contrary to what you may think, driving without insurance isn’t a wiser financial decision to make. According to Forbes, here are a few financial consequences that can hit your wallet hard. 

• Increased insurance rate. If you drive without insurance, you have a coverage gap. A coverage gap is seen as a higher risk to insure, which means you may pay higher rates once you decide to purchase a policy.

• Fixing your (or others) car. If you cause an accident, uninsured, you’ll have zero coverage for car repair bills. Not to mention, if you were to cause damage to someone else’s property (car, landscaping, etc)—you’re on the hook for that too.

• Medical bills. If you were to cause an accident that resulted in injuries, you could be responsible for the medical expenses for those injured and yourself. 

So as much as you’d like to think you’re saving some extra pennies by not having insurance, the reality is you’re taking in significant financial risk. At HiRoad, we want auto insurance to be uncomplicated and rewarding for you. With our insurance, you can save up to 50%—every month, making it easier to fit into your budget.

Do you need car insurance? Yes.

Let’s reiterate—it is illegal to drive without insurance in many states. However, an auto insurance policy can help protect you, your loved ones, others on the road and your/their property. Driving mindfully on the road is what we’re big on at HiRoad, and we think you should be rewarded for it through your car insurance. Sounds pretty cool, right?

The information in this article was obtained from various sources not associated with HiRoad®. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. HiRoad is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. HiRoad makes no guarantees of results from use of this information.

Car insurance can get very expensive in Singapore, especially if you've gotten in any accidents in the recent past or have any driving offenses on your record. Even for someone with a clean driving record, the average cost of car insurance can range from about S$700 to over S$3,000. But attempting to drive without car insurance is very risky and could end up costing you thousands of dollars, your driving license and even jail time. Here's a list of the kinds of things you should keep in mind if you've ever considered driving without a valid car insurance policy.

Legal Consequences

The Singapore Motor Vehicles (Third-Party Risks and Compensation) Act stipulates that someone found driving a motor vehicle in Singapore without insurance coverage will be guilty of an offense and liable upon conviction to a fine of up to S$1,000, imprisonment for up to 3 months, or both. If you're convicted of this offense, you'll also be disqualified from holding or obtaining a driving license for 12 months past the date of your conviction.

By actively choosing to contravene the law, therefore, you could find yourself paying a much higher price than the couple of thousand dollars you might spend on a car insurance premium.

There are several exceptions to this law. You will not be found guilty of this offense if:

• If the car in question does not belong to you or is in your possession under a contract of hiring or a loan

• If you're using the car in the course of your work

• If you genuinely did not realize, nor have any reason to believe, that a valid insurance policy was not in effect

What if you get in a car accident?

In addition to the legal implications and consequences you might face by driving without a car insurance policy, you also do so at great risk to yourself and your financial well-being. If you get into a car accident while driving uninsured, you won't just have to bear the significant expense of repairing or replacing your car, any broken personal possessions and any medical expenses yourself. You could also find yourself facing a lawsuit from the third party and having to pay for any losses, damages and medical expenses for the third party as well. Ultimately, this could cost you many thousands of dollars that would otherwise have been paid for by your insurer.

Consequences for Fronting

Some people with a less-than-stellar driving record might be tempted to avoid paying the full cost of the higher premium that goes along with being classified as a "high-risk driver" by engaging in a practice known as "fronting." Fronting is when you attempt to get a cheaper rate on your car insurance by using the details of a different, presumably better, driving profile. In short, it's a form of fraud. If you attempt this strategy to avoid paying higher car insurance premiums, you could find your claims repudiated and your policies cancelled entirely, especially if you get in an accident.

Final Thoughts

At the end of the day, while nobody enjoys paying for car insurance, attempting to avoid it by breaking the law is likely to cost you much more than your premium would, in both time and money. There are ways, however, to make sure you're not paying any more than you need to on your premium. If you're interested in learning more about how to get the best bang for your buck when shopping for car insurance, consider reading our guides on how to choose a car insurance plan and the top ways you can save on your car insurance.

The article What Happens If You're Caught Driving Without Car Insurance in Singapore? originally appeared on ValuePenguin.

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