It's simple. Every state in the nation requires that drivers have a minimum level of car insurance. In most cases, this means a driver must have liability coverage, which will cover other drivers during an at-fault accident. Drivers who do not carry the required minimum level of insurance not only face stiff penalties from the government, but they also put other drivers at risk. In the business world, most of the businesses you end up working with have insurance. It makes sense, if I wanted a moving company to move my valuables, I would hope that the moving company would have insurance to protect my property during the move.

There is no federal law that requires individuals to have car insurance, but each state does have a law on the books. And just as each state has a different law regarding the minimum coverage, each state also has a different penalty for those not having insurance. In Illinois, drivers pay a $500 fine for failure to prove insurance. This can be disputed in court, if the driver can prove they actually had insurance at the time of the infraction. If the driver is pulled over and doesn't have proof of insurance they will be immediately ticketed and will have to go to court to prove their innocence. In Massachusetts they take it even more seriously, as drivers can face fines up to $5000 or even possible jail-time.  For this reason, it's smart to get auto insurance quotes and find some sort of liability coverage. There are many companies offering auto insurance online to choose from.

Other states simply take away your car. For instance, if you are caught driving without insurance in Florida, Louisiana, Connecticut or New Jersey, you will have your car impounded. And anyone who has had their car impounded can tell you, it is not cheap to get your car out of hock. Not only will you have to pay the state or city for impounding fees, you'll also have to pay the towing company which transported and stored your vehicle. You could end up paying over $1000 – $2000 when all is said and done. So again, search for some auto insurance online and get cheap auto insurance quotes, as it will save you considerable time, trouble and money in the long-run.

Lapse in Auto Insurance Coverage

When you buy a new car, be sure to not let your auto insurance lapse. If you are going to be insuring the new vehicle with the same company, then simply notify them of your purchase and they will handle it from there. However, if you shop around for auto insurance online or fine cheap auto insurance from a different company, you will want to set up coverage immediately.

The same rule applies if you keep the same car, but decide to transfer coverage from one company to another. Notify both companies of your change, and coordinate a date for the transfer. You don't want to get caught driving without insurance, especially if you get in an accident. Plus, if you let insurance coverage lapse, you could be penalized by your company or state.  Search for cheap auto insurance online and get covered, it's much cheaper than a fine or penalty.