Laws regarding car insurance vary depending on the country or state but the bottom line is that there is a minimum insurance quota one has to fulfill to drive on public streets. The minimum is known as liability insurance and offers restitution to third party persons or property to the exclusion of the driver and their property. Failure to have this minimum car insurance leads to heavy fines, community service, and suspension of one’s drivers license for a predetermined time in contemporary society, car insurance is mandatory.
The purpose of this is so that car owners and drivers may show that they are willing to shoulder the financial responsibilities in the event that there is an accident. Many lending institutions refuse to finance a car until the prospective buyer parts with the minimum insurance on the vehicle. In most countries, the police are rightfully entitled to request to see the proof of coverage. If a driver is aware that the car they are driving lacks coverage and still goes on to drive the car, then they are likely to be liable for medical expenses of the other party in the event of an accident. They will also shoulder the responsibility of repairing the damage to the other car or replace it entirely.
Lacking insurance coverage is a violation of the law and leads to an addition of points on ones licence where a punitive point system is in use Once a person is found guilty of such a violation, they may have a hard time getting an affordable insurance coverage in the future. Insurance companies conduct background checks to prospective clients to determine how much of a liability they pose. Those at higher risk of causing an accident, or those with a history of accidents, face higher premiums. The insurance company may even disqualify an applicant completely if they deem a person poses too great a risk to the insurer.
There are however, a few exceptions and loopholes pertaining financial responsibility in the event of an accident. One would need a very skilled defense lawyer to exploit these exceptions. A person may see a reduction of charges from driving without insurance to driving while unlicensed or with a suspended license. This is however only successful where the period of lapse is short. A first time offender may also be able to invoke the mercy of the court and get a reduced sentence.
In summary, there is a lot that could happen to a person who declines to purchase the minimum insurance coverage for their automobile and none of it good. The driver is held responsible for property damage and hospital bills while are the same time is required to serve out the sentence that a court will hand out to them such as community service. If such a driver were to meet with, for example, 50 traffic enforcement officers, all 50 could charge the individual with driving without a license. For anyone planning to operate an automobile, having insurance for the car will not only bring peace of mind, it is also the smart thing to do.