When it comes to owning a vehicle and driving on the roads, it’s always important to have insurance. New York has one of the lowest uninsured motorists rates at 4.1%. With this in mind, it is unlikely that you will run into this concern. Car insurance in New York, in some cases, is more costly than other states. However, it is important to take into account the consequences of having no car insurance.
For someone who doesn’t have car insurance, there are some risks or problems you may run into if you are uninsured and in an accident:
Fines or Jail Time
You could be fined for every time the you drive uninsured or if you let someone else drive your car. This fine could be up to $1,500 for every occurrence. When it comes to the fines overall pricing, this will be determined based on any previous offenses or whether or not you have driven uninsured before. If you are unable or unwilling to pay the fines associated with this offense, there may be additional fines of up to $500. There is also the potential of 180 days of imprisonment as a consideration in some instances.
Car Impound
If you are caught for driving without insurance or are under arrest for the offense of driving uninsured, your car may be impounded. In this situation, you should anticipate paying for both the storage and towing fee of your vehicle. The fees for storage and towing are usually required upfront before you are able to get your car back.
Driver’s License and Registration Revoked
Driving with no insurance will cause you to get a ticket. You will have to pay a $750 fee in order to reinstate your New York state driver’s license after receiving the ticket. In addition, the suspension of your vehicle registration may also come with fees. The duration of the vehicle registration suspension could be the same length of time as the vehicle was uninsured. In the case of a lapsed insurance policy, you may have to serve a license and vehicle registration for at least a year.
Policy Lapsing in New York
When your policy lapses, the DMV is notified. In this case, the DMV may immediately suspend your car’s registration. The driver of the vehicle is responsible for turning in the plates from the vehicle and getting a new insurance policy within 90 days. It is better to get a new policy sooner than later as there are fees involved. These fees can add up quickly so the less you wait on getting a new policy, the better.
If the issue of obtaining a new policy is affordability, there are several strategies to lower the bill. Considering the strategies below may help in getting the insurance policy you want:
- Discount advantages
- Compare providers
- Drive an older vehicle with a high safety rating
- Improve your credit score
- Increase your deductible (to an amount you can afford)
Getting into an accident can be a hassle and can be very costly. Without insurance, you still share the responsibility for any damages or injuries that may have occurred. The penalties previously mentioned may also have to be covered which is why maintaining an insurance policy is crucial.
For more information on car insurance and coverage under no-fault, please visit https://dmv.ny.gov/brochure/auto-liability-insurance
