Driving without insurance is illegal in most states. You could face penalties such as fines, loss of your driver’s license and car registration, and even jail time, depending on the state.
If you cause an accident without insurance, you’ll have to pay for all the damage to your vehicle out of your pocket. You could also be sued by other people for damage and injuries you caused them.
Even if you buy car insurance the next day, that policy would apply only to accidents that happen after you buy it.
The outlook is slightly better if someone else hits you, since the driver who’s at fault typically is responsible for damage in a car accident. But state laws may limit what kind of expenses you can recoup if you were driving without insurance in that case.
Uninsured drivers also will have trouble finding cheap car insurance rates when they shop for a policy.
Car insurance is usually required
Almost every state requires drivers to prove they can take financial responsibility if they cause a crash. That often means buying car insurance, although some states allow a bond or cash deposit.
Alaska and New Hampshire are special cases. Alaska doesn’t require insurance in places where registering your car is optional; people in other parts of the state do need coverage. New Hampshire doesn’t mandate auto insurance for residents with clean driving records and only requires proof of financial responsibility after a crash.