By Dez Duran-Lamanilao

If you answer yes to the question, there may be a need to reconsider your decision. According to a 2014 study by the Insurance Research Council (IRC), the percentage of motorists who are driving without insurance have been declining in recent years. In fact, from 1992 to 2012, it has decreased from 15.6% to only 12.6%. This of course does not resolve the issue of exposing yourself and your vehicle to risks when you drive without insurance.

There are corresponding penalties an uninsured driver will have to pay depending on state laws. However, the situation is a much graver one if the driver got involved in an accident, more so if he was the one who caused it.

Since all states have financial responsibility laws, regardless of whether the state requires motorists to have auto liability insurance or not, you need to be financially capable in paying claims if you cause an accident. The state of Alabama, for example, requires $50,000 for all persons injured in an accident, subject to a limit of $25,000 per individual, and $25,000 coverage for property damage. In addition to bodily injury and property damage liabilities, other forms of compulsory coverage include:

  • Uninsured motorist
  • Physical damage
  • First party medical expenses (for policyholder)
  • Underinsured motorist
  • Personal Injury Protection (PIP)
  • Limited to financial responsibility; insurance not compulsory

It does seem not worth it to forego insurance considering the amount of expenses you might incur should the unfortunate incident happens. Aside from losing your savings, you also risk losing your driver’s license and insurance companies might not be forthcoming in giving you car insurance coverage in the future.

Start protecting your savings, yourself and your vehicle. Your insurance expert should be able to provide you with different quotes that offer the most reasonable coverage so you can choose what is best for your needs.