National Database Keeps Track of Insured Drivers

The national database for car insurance was created to keep track of insured drivers. Insurance providers report late and nonpayment status to the database, which then notifies law enforcement.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 15, 2021

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Here's what you need to know...

  • A national car insurance database has been created that helps law enforcement determine who has car insurance and who doesn’t
  • Breaking the law never pays, and driving without car insurance could be mean steep fines and possibly time in jail
  • Most states require you to carry coverage for uninsured drivers and underinsured drivers in addition to the minimum liability requirements
  • All drivers and their insurance coverage are entered into a national database so if you do not have appropriate insurance, you can be caught, and the consequences can be severe

Just because a law exists does not necessarily mean everyone follows it. However, technology makes it much easier to crack down on lawbreakers.

Don’t get caught without car insurance; enter your ZIP code right now for free quotes!

What the State Requires for Car Insurance

The state is primarily concerned with you having appropriate liability coverage. This basically means if you are responsible for injuring another party or damaging someone else’s property, you have insurance to help pay for the associated costs.

Liability for car insurance requirements varies by state and is usually minimal. Higher coverage limits are recommended for your own financial protection.

Many states also require you to carry uninsured motorist coverage and underinsured motorist coverage that is equivalent to the minimum liability requirements.

This is to help combat financial costs if you are struck by someone who does not buy additional coverage or does not have any insurance at all.

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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Getting Entered into the National Car Insurance Database

When you buy car insurance, you do not have to register your purchase with the state.

However, all insurance companies enter car insurance data into the national database. This makes it easy to cross-reference who has car insurance and who doesn’t, making it even easier for law enforcement officials to find lawbreakers.

Some drivers are more closely monitored for car insurance. If you have excessive moving violations or are charged with a DUI, you will most likely not be allowed to drive without having an SR22 insurance form.

In order to get your driver’s license reinstated, you will need to purchase car insurance from a car insurance company that deals with SR22.

Once you buy your car insurance from an authorized agent, the car insurance company will send your SR22 form to the state DMV and enter your information into the database.

Once the state receives proof that you have the appropriate coverage, your license will be reinstated.

If your insurance is canceled for any reason, such as lack of payment, the car insurance company will immediately report this to the national database and the state, and your license will be revoked.

If you cancel the SR22 insurance yourself, the car insurance company will also report that to the proper officials, and your license will be revoked.

The only way around this is to secure SR22 type of coverage with another insurance company and have that submitted before you cancel your current policy.

Breaking the Law by not Having Car Insurance

If you are in a car accident or you get pulled over for a moving violation, one of the items a police officer will ask to see is your proof of insurance. If you don’t have this, you can be in serious trouble.

Every state has its own laws regarding how much car insurance you are obligated to buy and what will happen to you if you fail to abide by those laws.

In general, if you drive without car insurance you can be subjected to substantial fines and your driving privileges may be suspended for up to one year.

You can also be ordered to serve jail time or perform a certain number of community hours.

The repercussions of being involved in a car accident without car insurance can be even more severe. If you are at fault for the accident and someone gets hurt, you will be responsible for all of their medical expenses and any damage to their vehicle out of your own pocket.

Any property damage that results from your doing is your responsibility. This includes hitting someone’s fence or running into a mailbox. If you don’t have any liability insurance for your car, then you will be paying for all repairs and replacements.

Driving without insurance is not worth the risk or cost. The national car insurance database makes it easy to track down lawbreakers.

Make sure you have sufficient car insurance by entering your ZIP code now for free car insurance quotes.



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