Besides the fact that driving without insurance in New York State is a criminal offense, going without coverage leaves you exposed for great financial loss whether you are at fault in an accident or not. You need car insurance not only to protect against injuring someone else but also to protect yourself from being injured by a driver that doesn’t have insurance or only has low limits of coverage.
Protection Against Injuring Others
Imagine that you do not have auto insurance and are at-fault in a crash that causes a severe injury to another driver. That driver now sues you for $1 million. You have no protection from NY insurance companies which means you are solely liable for the full judgment amount and even have to hire your own attorney to represent you in court.
Suddenly the thought of paying for car insurance seems like the bargain of the century but unfortunately, you can’t go back in time.
If you have the assets, they will go to the injured party and their attorney. If you don’t have the assets or not enough assets to fully cover the court award amount, a judgment will be issued and attached to your credit report. This judgment will hamper your ability to receive financing, buy or sell real estate, get certain jobs among other barriers. Your wages may also be garnished up until the point that the judgment amount is fully satisfied.
Oh, don’t forget that driving without insurance in NY is a criminal offense and there will be fines and you could have your license suspended.
Protection Against Others Injuring You
Going without NY car insurance also leaves you exposed to being injured by others and receiving no compensation for your injury.
Say someone hits your vehicle at-fault and leaves the scene of the accident while your car swerves off the road and hits a tree. You suffer a serious injury that would typically be awarded $500,000 for a claim or court award, but you have no insurance.
Not only would you receive nothing for your injury, you could also be responsible for any damage that your vehicle caused to the land, trees, inanimate objects, etc. Also, you are solely responsible for the medical bills related to your injury as you would have no personal injury protection or medical payments coverage.
Also keep in mind that having car insurance also protects those driving in your vehicle with you.
Why Do People Go Without Car Insurance?
There are several different reasons why drivers go without insurance but by far, the biggest reason is cost. Especially over the past several years as rates have increased significantly some people can’t afford it or believe they can’t make the payments.
You might be surprised at how affordable a policy can be, especially if you go to an independent insurance agency for your NY car insurance quotes because they will have access to many different insurers and run the comparison quotes for you.
If after getting quote comparisons the cost is still more than you can afford for full coverage, you can consider getting a liability-only policy if you have an older car that doesn’t hold much value.
At the end of the day, you do need car insurance, not only because it’s the law, but because it will protect your financial future.
If you have any questions regarding auto, home and business insurance options, please contact us, we’re always glad to help. The NY Insurance Hub serves Albany, Schenectady, Troy, Latham, Cohoes, Watervliet, Clifton Park, Saratoga Springs, surrounding Capital Region areas and all of New York State from NYC to Buffalo.