There is only one state with no penalties for driving without car insurance
April 17, 2025
Key takeaways:
- A third of Americans have considered or know someone who has considered not paying for car insurance after premiums have gone up.
- Car insurance premium hikes for driving without insurance vary widely across states, with the stiffest increases in Massachusetts, Californiaand Michigan.
- Fines for driving without car insurance range from as little as $75 to as much as $5,000.
Driving without car insurance is a bad idea, but it is even worse in some states.
Annual car insurance premiums can go up as little as 2% to as much as 58% depending on the state after getting caught driving without insurance, according to a report from insurance-comparison website The Zebra.
“When you do get insurance again, it will likely be more expensive,”Susan Meyer, insurance analyst at The Zebra, told ConsumerAffairs.”Insurance companies charge higher rates for drivers who have had a lapse in coverage. Also, if you received a ticket for driving without insurance, that violation will lead to an increase that averages around 15%.”
The findings come as around a third of drivers have considered or know someone who has considered not paying for car insurance after costs have risen, according to an April survey by The Zebra.
More than a quarter of drivers have already seen their car insurance costs rise by $100 to $200 in 2025, according to a surveyfrom insurance website Guardian Service.
In these uncertain economic times, and with car insurance rates in a major spike, people are starting to look for ways to cut their budget,” The Zebra’s Meyer said. “Some may consider letting their insurance lapse, driving uninsured and hoping for the best.”
Driving without car insurance is breaking the law, with fines ranging from $75 in Idaho to as high as $5,000 in North Dakota,in every state except New Hampshire, which doesn’t require everyone to have insurance, The Zebra said.
Some states, such as Arizona, Ohio and Virginia, will suspend driver’s licenses and others, such as Maryland, Minnesota,and New York, will even throw drivers in jail.
If a driver is caught without car insurance, it is up to the police to decide whether or not to tow a vehicle, which can incur additional fees.
Around28 million drivers, or nearly 14% on average,are already driving without insurance, The Zebra said.
“Despite all of these consequences, we expect to see a rise in uninsured motorists on the road,”Meyer said. “Unfortunately, that will likely continue to drive insurance prices up as insurance companies for those who are insured will have to pay out for damages, which may then lead to more people not being able to afford insurance in a vicious cycle.”
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