Penalty for driving without insurance for every state

You're putting yourself at risk in more ways than one if you drive without insurance. The lapse in your coverage after 

driving without insurance will cost you, on average, 10 percent more when you finally get a new policy in place. But the cost is much higher in some states, for instance, in California, the average driver faces a 36 percent hike, and in Massachusetts and North Carolina you'll see increases of about 30 percent, CarInsurance rate data show.

Additionally, the penalties for driving uninsured vary by state, and more importantly, if you get in an accident, you're on the hook to pay for the damages.

For example, in

California, if you drive uninsured and get in an accident, you could lose your license for up to four years, whether or not the accident was your fault. After a year, you may be able to get your license back if you get insurance, provide proof to the motor vehicle department and pay a reinstatement fee. Bear in mind you will also be required to file an

SR-22 form to show proof of financial responsibility. You are also responsible for all the costs associated with the accident. Even if the other driver has uninsured motorist coverage and his insurer compensates him, his insurance company will likely sue you to recover its costs. This means you could lose your assets and home if the cost of the damage exceeds the amount of money you can pay.

Even if you are lucky enough to avoid an accident while driving without car insurance, in many states your registration and license will be revoked if you are cited, you have to pay a fine and your car may be impounded. Rather than driving without insurance, consider buying the

cheapest car insurance you can get. This would be the

minimum liability insurance requirement in your state to drive legally. In some states, minimum coverage costs less than $400 a year.