Due to the financial crunch that many have felt because of the economic downturn, many have gone to the extreme of cancelling auto insurance polices in order to save a few dollars. Unfortunately, what these individuals do not realize is the consequences that they can suffer if caught without proof of a policy whether due to a routine traffic stop or following an accident. The result can be much more costly than the price of being insured and may end in future financial hardship.
Almost every state requires that their motorist maintain some type of financial responsibility while operating a vehicle to ensure that there is compensation in place for injuries and damages resulting from a traffic accident. Most states require that an individual show valid proof of auto insurance in order to obtain or renew a vehicle’s registration. In addition, many states have implemented a system that requires insurers to electronically notify the state’s motor vehicle authority when an automobile’s policy is purchased or when it has been cancelled.
In the event that a vehicle’s policy has been cancelled some states will suspend the registration until the owner provides proof of auto insurance and pays a reinstatement fee, if applicable. The main goal for authorities to monitor drivers and their coverage is to help keep uninsured motorists off of the roadways which in turn will protect those who are operating their cars legally and pedestrians who also occupy the road. For more details regarding the financial responsibility law one can visit http://www.bmv.ohio.gov/financial_responsibility/fr_requirements.htm for a better understanding of the requirements and how it is beneficial to residents.
There can be many consequences that may follow if a motorist is caught driving without coverage. Depending on the state, if caught driving uninsured, penalties can result in such things as a citation, having a vehicle impounded, the suspension of driving privileges and/or registration or any combination of the aforementioned. An even worse situation would be the involvement in a collision while uninsured; the results can be devastating both emotionally and financially. The uninsured motorist can be found responsible for compensation due to the other party for damages to property and/or bodily injuries. In some cases they can be subject to a lawsuit or may even face possible jail time. In any event, it can be far more beneficial to always carry a valid policy and operate vehicles legally and it can be a lot less costly than if caught uninsured.
However, cheap insurance policies aren’t offered by all companies and it is normal for a motorist to come across those who offer rates that they cannot afford. Thus, they are tempted to just cancel a policy or not purchase one. This is considered unwise by many and can be avoided by shopping effectively. By visiting http://www.onlineautoinsurance.com/proof/ consumers will find assistance in locating cheaper rates as well as obtain the proof of insurance that they need in order to drive legally.
