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What happens if you get caught driving without car insurance?



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The answer may be obvious to many but others may still ponder. What if you drive around without car insurance? And why would you risk it? Of course, trying to dodge cost is a major factor for many with some high risk motorists and young, inexperienced drivers having to fork out thousands for car insurance. 

The cost of not having car insurance and getting into an accident, however, is even worse. You could be paying out even higher amounts, have your licence revoked or even worse….serve jail time.

Here’s why it’s not worth risking.

Pay a hefty fine

Get caught and the Singapore Motor Vehicles (Third-Party Risks and Compensation) Act applies in which it stipulates that someone found driving a motor vehicle in Singapore without insurance coverage will be guilty of an offence and liable upon conviction to a fine of up to S$1,000, imprisonment for up to 3 months, or both.

Driver’s licence taken away

If convicted, you could also be disqualified from holding or obtaining a driving licence for 12 months past the date of your conviction. 

Spend time in jail

The law also stipulates that you can be imprisoned for up to 3 months (on top of paying a fine). 

However, there are some minor exceptions to the rule. 

You may not be found guilty of this offence if: 1) if the car does not belong to you or is in your possession under a contract of hiring or a loan; 2) you genuinely did not realise, nor had any reason to believe, that a valid insurance policy was not in effect.

What happens if you have a car accident?

If you’re involved in a car accident while driving uninsured, you’ll have to pay for repairing or replacing your car, any broken personal possessions and any medical expenses yourself.

That in itself could lead to financial ruin. But added to that, you could also find yourself facing a lawsuit from the third party and having to pay for any losses, damages and medical expenses for the third party as well. Ultimately, this could cost you many thousands of dollars that would otherwise have been paid for by your insurer.

Fronting

Some people with a less-than-stellar driving record might be tempted to avoid paying the full cost of the higher premium that goes along with being classified as a "high-risk driver" by engaging in a practice known as "fronting." Fronting is when you attempt to get a cheaper rate on your car insurance by using the details of a different, presumably better, driving profile. In short, it's a form of fraud. If you attempt this strategy to avoid paying higher car insurance premiums, you could find your claims go unpaid and your policies cancelled entirely, especially if you get in an accident. 

Parting thoughts

Consumer researchers ValueChampion added: “At the end of the day, while nobody enjoys paying for car insurance, attempting to avoid it by breaking the law is likely to cost you much more than your premium would, in both time and money. There are ways, however, to make sure you're not paying any more than you need to on your premium.”

Check out Budget Direct Insurance, the insurer that won’t allow you to fork out any more than you need to. 

Budget Direct Insurance
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