In every state, drivers are required to pay certain amount of money so that if they are involved in a motor vehicle accident then that companies payoff all the damages. These laws are sometimes called `financial responsibility` laws, because while not all states specifically require that drivers carry liability insurance from an insurance company, all states do require some form of proof of financial responsibility.

The penalty for driving without insurance varies from state to state. If you are uninsured and you indicate a high Intent to Drive as an uninsured motorists, your vehicle tag can be seized and your car impounded. In addition, some states impose heavy fines for those who drive without auto insurance or continue to drive even if they are unable to keep their car insurance. Limited states fine a fee of $150 to $500 for driving without insurance The consequences can be far more serious if you are involved in an accident and do not have insurance. Most drivers are insured, but many drivers feel that drivers on the road today are driving without car insurance. You may have to comply with the financial responsibility laws (SR22, SR22s, SR16) including having to pay for any injuries or damages out of your own pocket.it may also lead to suspension of certain driving privileges.Driving without liability insurance could result in fines, suspension of your driving privileges, and your vehicle could be towed. If your vehicle is towed, you are subject to the towing and storage fees. This is in addition to any fines you may have to pay. If you are driving uninsured and are involved in a crash, your driving privileges will be suspended for one year. After the suspension ends, you can reinstate your driving privilege by filing proof of future financial responsibility (SR-22) with DMV for three years.