Online Car Insurance – Penalties for Driving Without Insurance
Because each state has different requirements regarding auto coverage law, each state will also carry different penalties. Some of these penalties include fines and the suspension of the driver’s license and/or suspension of the vehicle registration. Another factor is how often a driver is found guilty of breaking this law. Subsequent offenses will lead to more fines and jail time.
In some states, insurance companies and State Departments of Motor Vehicles communicate with each other. Insurers notify Motor Departments when policies are canceled and not renewed. In some cases, it is justifiable because the former policyholder has moved out of state. If the policyholder can prove this, no action will be taken. In other cases, when the policyholder failed to renew the policy and didn’t start a new policy by choice, the law will come looking for the reason why there is not a new policy in place and will most likely give fines.