For drivers in the United States, car insurance is a fact of life. With very few exceptions, you’re required by law to carry at least liability coverage, and even that can rack up quite an expense. So what happens if you just choose not to pay it?
That’s the question a viral TikTok has viewers asking. Samuel (@wedispisesamuel) claims in the caption of his short video that his insurance is “400$ a month.” As his camera pans over the dash of his Lexus, the screen text states, “Stopped paying my insurance and all my financial problems went away.”
The July 4 post has over 1.2 million views as of this writing.
Where and why is car insurance required?
According to Progressive Insurance‘s website, every state in the U.S., except New Hampshire, requires that the driver of a vehicle has insurance. It is also legal to drive without insurance in Virginia, but drivers must pay a $500 uninsured motorist fee each year to opt out of the existing requirements.
Samuel does not reveal what state he drives in, so it is unclear whether either exemption applies to him. The Daily Dot has reached out to Samuel via TikTok comment and direct message for more information.
Progressive also states, “The main reason car insurance is mandatory in almost every state is because of your personal responsibility (liability) if you cause an accident. By mandating car insurance — liability insurance specifically — the victims of an accident caused by you can receive financial relief for injuries and property damage without severely impacting your own financial well-being.”
What happens if I miss payments and drive uninsured?
Samuel says he’s doing better financially. However, drivers considering his hack should note that if a driver is violating state law by being uninsured and police pull them over, the costs will likely start adding up.
According to Car and Driver, “Drivers whose insurance doesn’t meet state requirements may incur heavy fines and penalties.”
Additionally, regardless of state law, if Samuel ever decides to get a new policy or renew his current one, he “will probably have to pay more due to the lapse in coverage,” per Car and Driver. The site says this is because insurance companies “will inquire about your insurance history and will know if you missed payments. Because of this, they will likely view you as a risk and may either not want to insure you or could drastically increase your premiums.”
Furthermore, if Samuel is still paying off a loan on his car, he is likely required to maintain insurance on the vehicle. Car and Driver states, “The lender probably requires some form of insurance, such as collision and comprehensive coverage. If you default on your insurance payments and lose your coverage, a lender is legally entitled to take back your vehicle.”
@wedispisesamuel It’s 400$ a month #cars #insurance #exhaust #foryoupage ♬ Rotten to the Core – Lexa Gates
Still, many of Samuel’s viewers agreed that Insurance was a heavy burden, with some even saying it should not be required.
One person, remarking on the legal requirement to hold car insurance, said, “Growing up [is] realizing [the] USA is a trap.”
“They should give you money back at the end of every term if you go without an accident,” Zahmen999 (@zahmen90909) wrote.
Another viewer added, “400$ a month is crazy.”
Did a recent Supreme Court ruling create a loophole?
One viewer seems to believe that Samuel is no longer legally required to have insurance to drive.
Neri Fernando (@nerifernando443) wrote, “Look up the chevron law, don’t need nothing to drive now.”
Fernando seems to be referencing the recent Supreme Court ruling that struck down 1984’s Chevron v. Natural Resources Defense Council decision.
Under Chevron, courts were instructed “to defer to [a government] agency’s interpretation of a statute in circumstances in which the law in question is vaguely written.”
The recent ruling to strike down the decision potentially affects many things, including court decisions on environmental and consumer protections. However, the ruling has not affected insurance requirements.
Internet culture is chaotic—but we’ll break it down for you in one daily email. Sign up for the Daily Dot’s web_crawlr newsletter here. You’ll get the best (and worst) of the internet straight into your inbox.
