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9. Auto Accidents: Causes & Prevention

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27. Lack of Insurance

Consequences of Insufficient Insurance

  • Underinsurance: If you don’t have enough coverage and are involved in an accident, you can be sued for damages not covered by your policy. This could lead to a judgment against your assets.
  • License Suspension: Your license may be suspended if you fail to pay for damages over $1000 or for injury or death resulting from an accident. This also applies if you fail to provide proof of financial responsibility.

Responsibility and Liability

  • Owner’s Responsibility: As a vehicle owner, you are liable for damages if someone else driving your car with permission is involved in an accident. If the driver is a minor, the person who signed the minor’s license application is liable.
  • Insurance Coverage: Many accidents result in settlements that exceed minimum insurance coverage. You might be responsible for paying the additional amount if your insurance doesn’t cover all damages.

Penalties for Non-Compliance

  • Fines and Impoundment: Driving without proof of financial responsibility can result in a fine of up to $500 plus penalties, and your vehicle may be impounded.
  • License Suspension: Failure to maintain financial responsibility can lead to a license suspension for up to 4 years. Presenting false evidence of coverage, such as an expired policy, is a misdemeanor punishable by up to $750 in fines and 30 days in jail.

Reinstatement and Verification

  • DMV Review: The DMV verifies your financial responsibility through your insurance provider. If it’s found that you didn’t have proper coverage, your driving privilege may be suspended for 1 year. You must then provide proof of financial responsibility for the next 3 years to reinstate your license.
  • Accidents and Civil Damages: You may be liable for civil damages in an accident, and fines may apply if the accident involved a law violation.

Registration and Records

  • Vehicle Registration: A vehicle cannot be registered or have its registration renewed without proof of financial responsibility.
  • Driving Record: The DMV maintains a public record of at-fault accidents and assigns points. Accumulating too many points can result in license suspension or revocation.

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Lesson Summary


  

Lesson 9 Quiz


You will now answer 5 questions to test what you learned during this lesson. You must answer all questions correctly to receive completion credit for this lesson. You may answer the questions as many times as necessary to get them right.

You should review the lesson material if you don't do well on the quiz.

  1. If you have a tire blowout:


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  2. Failure to yield is the primary cause of what percentage of fatal and injury collisions?


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  3. To avoid tailgating, and help avoid a rear-end collision, you should give yourself a gap of how many seconds behind the car in front of you?


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  4. If you are distracted for one second, by a cell phone, passenger, or other distraction, at 30 mph you will travel how far "blindly"?


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  5. Teenage drivers have a total accident rate that is _____ times that of adults:


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