Driving Without Insurance

By Ben Glass, Esquire

Virginia allows you, and just about anybody else, to drive without insurance. All you need do to is pay the uninsured motor vehicle fee of $500 annually. Should this scare you? Does this really matter to you? After all, buying insurance isn't cheap and rarely is your insurance actively used. What if you are comfortable with the risk of paying for your own damages and/or injuries out of pocket, should you drive uninsured?

Well, one complicating factor is that driving without insurance isn't just risky for you; it's risky for other drivers around you. For example, let's say you rear end a car in front of you. Let's say the impact was hard and there were four people in that car in front of you who were injured as a result of the accident. You're now responsible for the damage to your car, damage to the other car, and the injuries to the four people in the front car.

Obviously, if you have any personal assets of value, you can kiss them goodbye to the extent that you owe for the damages you caused. Even for the more affluent among us, this will be a serious financial burden. The reality is, however, that most people driving without insurance don't have much in the way of personal assets. That puts the victims of the accident in a hard place because if you don't have the money or insurance to pay for the damages you caused, the other vehicle's owner will likely be on the line. The other vehicle's driver or owner (or both) will, in effect, be paying for the damages you caused.

But it can be worse

Let's say that the driver/owner in front of you carried minimal limits and there was no other available coverage from the passengers in the vehicle. If the injuries of the family in that car exceed the limits of coverage they have on their policy, then we have a serious financial problem.

So, what's the solution?

Sadly, oftentimes, there isn't one. Health insurance will typically play a role in covering some of the injuries, but the overall picture can be grim. In some cases, the victim of the accident simply won't be indemnified for the loss. The at-fault party is probably in a losing situation, as well. The at-fault party may be facing future pay garnishment and collections agencies for a very long time. It's a true lose-lose scenario.

So, the moral of the story as one may have guessed is to buy insurance and get the coverage limits that are appropriate for you, even if you do it begrudgingly.