Is it worth it to drive without insurance?
Driving without insurance to try to save money can backfire, sometimes with unexpectedly harsh results.
Best case, almost any lapse of insurance makes it harder to buy coverage when you are ready. But even more important, in nearly all states, it's illegal to drive without minimum coverages or other proof that you can take financial responsibility if you cause an accident. If you're unable to produce proof of insurance after a traffic stop, you could end up with a fine. Worse, if you're at fault for an uninsured accident, you could face license suspension and higher insurance rates for years – not to mention financial hardship when you're forced to pay damages out of pocket.
The stakes are even higher in Oregon, which is a "no-pay, no-play" state. That means if you get hurt in an accident caused by someone else, you could be limited from collecting non-economic damages (like pain and emotional distress) if you don't carry the state's mandated minimum insurance coverage.
It doesn't take a lot of coverage to keep you on the right side of the law. (Those limits, however, may not be enough to fully protect you financially in a serious accident.) Here's what's required to drive legally in Washington and Oregon:
| Coverage | Washington | Oregon |
| Bodily injury liability (per person) | $25,000 | $25,000 |
| Bodily injury liability (per accident) | $50,000 | $50,000 |
| Property damage liability (per accident) | $10,000 | $20,000 |
| Underinsured motorist protection (per person) | Not required | $25,000 |
| Underinsured motorist protection (per accident) | Not required | $50,000 |
| Personal injury protection (PIP) | Not required | $15,000 |
Your proof of insurance card is important
If an officer pulls you over for a moving violation (like speeding) or even defective equipment (like a burned-out taillight), they have no choice but to assume you're uninsured if you can't provide proof of insurance. That's either a paper card you receive from your insurance company or an electronic document you can show on your phone.
A first offense may result in a fine, which will appear on your driving record. You'll be classified as a higher risk driver and you'll pay more for insurance when you do get it.
Fines get higher for subsequent offenses, and your license could be suspended, particularly if you're involved in an accident, even if it's relatively minor. The state may order you to obtain what's called an SR-22 certificate of financial responsibility from your insurer to prove you have the minimum required coverage before you can resume driving. SR-22s are associated with major driving violations and mean your insurance rates will be higher.
If you had insurance but were unable to produce your card during a traffic stop, you can contest your citation for driving without insurance in court. To avoid the potential hassle, keep your proof of insurance with you at all times – one copy in your car, one in your wallet next to your driver's license and, as backup, an electronic copy on your smartphone. That way, you'll always be able to prove you're the financially responsible driver that you are.
You have alternatives to letting your insurance lapse
Financial hardships and hectic schedules don't have to jeopardize your insurance coverage. You may be able to work out payment arrangements to maintain coverage with your insurer. Similarly, if you travel frequently or tend to let mail pile up unopened, switch to automated payments so you won't lose coverage because you accidentally miss a payment.
And, if it's becoming challenging for you to manage insurance costs because of interruptions in income because of COVID-19, talk to your local PEMCO agent or call us at 1-800-GO-PEMCO. We'll do our best to keep you and your budget protected.
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