When you buy insurance for your home, vehicle, or health, you’re taking steps to manage risk. Each month, you pay a premium. In return, your insurance will cover loss if need be. Thanks to insurance, you can own a home, drive a car, take vacations, run a small business, and more. Unfortunately, many Americans are uninsured or underinsured.

Here are four potential consequences of being uninsured in NJ.

1. You are subject to fines.

In many cases, carrying insurance is mandatory. If you finance your home or vehicle, your lender will require you to have insurance. Still, some people feel they can’t afford insurance and try to get away with not having it. However, not carrying insurance can actually cost you more.

New Jersey is extremely strict with its traffic laws. If you’re caught driving without car insurance in the state of New Jersey, a first offense can cost $330-$1,000 and include a 1-year license suspension. A second offense carries a fine of $5,000, a mandatory jail sentence of 14 days, community service, and license suspension.

If you have a bad driving record, you still need insurance. Gather quotes from various insurance carriers or see if you qualify for high-risk auto insurance. There is no excuse not to be covered.

2. You could lose all of your assets.

Insurance protects your personal assets. If a customer slips and falls in your business and sues you for the damages, how would you pay for them? If you caused an accident where someone was injured, how would you cover their medical bills and your legal expenses? Rather than having to use your home or assets to pay for these costs, your insurance would help out. This way, you can keep your personal assets and avoid financial ruin.

3. Your family could be left with no money to pay the bills.

It’s never easy to plan for a family’s future without you in it, but it’s important to be realistic. No one lives forever. If you were to die unexpectedly, would your family have the resources to pay for the home, the bills and the same standard of living?

Too many people choose not to have life insurance because they are young and healthy, but this is actually when life insurance is cheapest. And, if you live a long, full life, you can use your life insurance toward your retirement in NJ.

4. You could lose your home or precious belongings.

If you have a mortgage on your home, you must have home insurance. But, it’s important to know what is covered under a standard homeowners policy. It’s possible that you may need additional coverage depending on your lifestyle, where your home is situated, and the belongings you have. Additional coverages worth considering are flood insurance, sump pump overflow insurance, and personal property coverage.

Insurance is something we need to live our lives while managing risk. Being uninsured or underinsured can end up costing you more in the long run, so talk to an insurance agent at Soden Insurance to determine where you stand. Get the peace of mind you deserve with the best insurance possible.