What happens if you're in an accident without insurance?

If you’re in an accident without insurance and you are at fault, you will need to pay out of pocket for any damage or injuries you cause. You will also face your state’s penalties for driving without insurance, which could include fines, a suspended license, and even jail time. If you are uninsured and the other driver is at fault, however, their insurance will cover your bills up to their policy limits.

Almost every state requires car insurance, with the exceptions of New Hampshire, Virginia, and remote parts of Alaska. In every other state, driving without insurance will result in steep penalties. Additionally, police officers can legally have your vehicle towed if you don’t have insurance. And even if insurance is not required in your state, you will still be financially responsible for any damage you cause.

Causing an accident without the financial safety net of a car insurance policy also leaves you vulnerable to lawsuits. In no-fault states, each driver’s insurance pays their basic medical bills, but drivers can sue for serious or particularly expensive injuries. However, fault laws do not affect property damage, so you will still be responsible for any damage you cause to other cars, buildings or mailboxes, for example. And in tort states, which use fault as a factor in determining who pays, you can be sued for expenses due to injuries or property damage. Even if you don’t have enough money to pay for the destruction you cause, courts can seize your assets or garnish your wages.

If you caused an accident without insurance and want to continue driving, you should purchase a car insurance policy immediately. Be aware, however, that drivers with a lapse in coverage will pay more for insurance since they are considered high-risk. A history of at-fault accidents will also increase your premium. With that in mind, WalletHub has ranked the cheapest car insurance companies for drivers with accidents, for your convenience.

Cheapest Car Insurance for Drivers with One At-Fault Accident

• AAA - $715 annually
• Geico - $900 annually
• Esurance - $1,103 annually
• USAA - $1,154 annually