Why there's penalties for no car insurance drivers

Augusta

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it remains Illegal to not have Car Insurance in a lot of states. The penalties that follows too isn't a light one as well. So why is it illegal not to have car insurance policy on some states

Car accidents are expensive.

The thing is that car accidents are really expensive as it is on record
that it cost Americans $142 billion every year for immediate expenses like car repairs, medical bills, and lost income etc one need to have a car insurance policy in place to help out during fatal accident.

The truth is that if uninsured driver is severely injured or critically injured a third party the cost that will spring up in such accident might be up to $1 million both for the accident and other accident-related costs..The unfortunate part of it might just be the person might not be able afford to pay. and if a third party is also involved might leave the person suffering as well.

For protection of people around an uninsured driver

Why it is also illegal to drive without car insurance is to protect people around drivers whether with personal or commercial vehicles. As a lot of drivers don't have million dollars to fork over after an accident which can be handled only by Insurance companies. So it becomes critical for all drivers to have their car insurance proof. infacr it becomes even a lawful thing to do in the U.S. The whole essencev is to protect the drivers and most importantly people around them from financial ruin after an accident.
 

Knowlopedia

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There are usually no penalties for no car insurance drivers. This is because drivers are required by law to have car insurance. However, if you do not have an accident and you do not claim any damages on your own, the insurance company will file a complaint with your state's department of motor vehicles. If they do not hear from you in 10 days, then they are legally allowed to suspend your license.

If there is no penalty for no car insurance drivers, why is it important to maintain coverage?
- In order to be eligible for any type of auto loan or mortgage! Without automobile coverage, these loans can be hard or impossible to obtain.
 
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