Automobile insurance limits your liability in the event of an accident. Every state except New Hampshire requires that drivers carry automobile insurance. Electing not to carry auto insurance can lead to serious consequences.
According to FindLaw.com, law enforcement will ask for proof of insurance when they perform a traffic stop. If you cannot prove that you carry auto insurance, you will receive a ticket and fine. Additionally, your car may be impounded and your license plate seized.
In addition to the monetary fine, violating your state's auto insurance laws may add points to your license. This can often lead to higher auto insurance rates.
If you do not have auto insurance and are involved in an accident, you will have to pay the other motorist's accident-related medical bills. Additionally, you will have to pay for repairs to their vehicle, according to CarInsurance.com.