The penalties vary from state to state for driving without insurance.  Some states will suspend your license.  The Department of Motor Vehicles might cancel the vehicle registration and not renew it without proof of insurance.If you are at fault in an auto accident and don't have insurance, the other driver can sue you for property damage (cost of repairs to a vehicle) and personal injury.  If there is a judgment against you in an auto accident personal injury case, you will be liable for the medical bills, pain and suffering and wage loss.  Compensation for the medical bills is straight reimbursement.  Compensation for wage loss is straight reimbursement.  Compensation for pain and suffering is an amount in addition to the medical bills.If the other driver has uninsured motorist coverage, the other driver's insurance will pay on the claim, but will then sue you to recover the amount it paid on the claim.