These States Do Not Require Auto Insurance

A frank dialog with insurance coverage knowledgeable shopper advocate Doug Heller

By Jim Probasco Full Bio LinkedIn Twitter Jim Probasco has 30+ years of expertise writing for on-line, print, radio, and tv media, together with PBS. His experience consists of authorities packages and coverage, retirement planning, insurance coverage, household finance, residence possession and loans. He has a bachelor's from Ohio College and Grasp's from Wright State College in music schooling. Study our editorial insurance policies Up to date February 15, 2022


Displaying Proof of Monetary Accountability

Drivers who choose out of auto insurance coverage want to supply proof of monetary duty like different drivers. As a substitute of carrying insurance coverage playing cards, they’ve to hold copies of their bonds and present them to the police if they’re pulled over for site visitors violations.

The actual hassle comes when a driver is in a automobile accident, and even simply pulled over, and might’t present proof of car insurance or monetary duty. There is a good probability the driving force’s license and registration will probably be suspended. Getting them reinstated would require you to acquire proof of insurance coverage or monetary duty. In some states, repeat offenders are required to have insurance coverage protection for a acknowledged size of time, similar to three years.

How a lot is sufficient?

Whereas the state minimums are comparatively low, you should additionally ask your self the query of whether or not or not it’s sufficient for you. For those who had been to have an accident the place somebody was crippled for all times, your value of legal responsibility might rise to over $300,000 in complete damages in the event that they had been to take you to courtroom.

If somebody is killed or immobilized, because of this, you may be sued for the remainder by the plaintiff if the accident was deemed your fault.

For that motive, many brokers suggest minimums greater than $100,000 per individual and $300,000 per accident.

Store round and ask an agent how a lot protection is a practical quantity so that you can have in your auto insurance coverage coverage. With auto insurance coverage, one should all the time weigh the chance of accident and loss with the quantity of the premium monthly.

Evaluate insurance coverage insurance policies to get one of the best protection at one of the best price. Start by entering your zip code into our FREE comparison tool!


If I’ve the minimal required limits, is it mandatory to buy increased limits?

It isn’t legally required to have increased limits if you’re already carrying the minimal quantity. Nonetheless, relying on the person, many will select increased limits to lower the quantity for which they’re liable.

Needless to say if you’re in an accident, as soon as your limits have been reached, you’re personally accountable for the quantity over and above that.

If there may be a whole lot of property and/or bodily harm, the associated fee could also be quite a bit increased than the boundaries you will have in your coverage, which suggests you’ll owe quite a bit out of pocket.

It is a good motive why it’s possible you’ll think about elevating the boundaries in your coverage, so you’ll not owe as a lot, if any in any respect.

Professionals And Cons Of Not Having Automobile Insurance coverage

Although it might appear to be states the place automobile insurance coverage is just not obligatory save drivers cash, one accident can stability out the prices of month-to-month premiums.

How a lot do it’s a must to make to not have automobile insurance coverage? Although there isn’t any particular wage threshold, forgoing automobile insurance coverage sometimes solely is sensible for somebody with a big financial savings. You should be capable to show which you could cowl the prices of medical funds and property damages each for your self and the opposite occasion in sure conditions.



No administrative efforts

Very excessive prices in the event you trigger an accident

Get monetary savings over time if you’re not in an accident

Tough to journey between states with differing insurance coverage legal guidelines

Keep away from altering automobile insurance coverage charges or surprising prices

Danger of dropping license and registration if unable to pay for damages

Price (in Virginia) that doesn’t go towards accident prices

Tough to journey between states with differing insurance coverage legal guidelines


States With No Automobile Insurance coverage Requirement

There are simply two states that don't require automobile insurance coverage: New Hampshire and Virginia.

Car insurance is just not obligatory in New Hampshire, however residents are nonetheless accountable for damages ensuing from a car accident: as much as $50,000 for legal responsibility and $25,000 for property harm. Drivers who can’t pay for damages can count on to have their licenses and registrations suspended.

Virginia residents can skip getting automobile insurance coverage in the event that they pay the state $500 per 12 months. Nonetheless, that doesn’t present accident protection of any sort. The motive force who caused the accident continues to be liable.

8. All States Automobile Insurance coverage

SafeAuto supplies state minimal automobile insurance coverage. Moreover, though there are states wherein we don’t supply automobile insurance coverage in instantly, we are able to nonetheless show you how to (24)

Apr 9, 2021 — Which States Have the Least expensive Automobile Insurance coverage? Totally different states require completely different ranges of insurance coverage protection, with a pair not requiring it in any respect. For those who don’t qualify for USAA, which is proscribed to present and former army (25)

Jun 27, 2013 — Auto legal responsibility insurance coverage is obligatory in 49 states and the District of Columbia. New Hampshire, the one state that doesn’t require auto legal responsibility (26)

States that do not require automobile insurance coverage

New Hampshire is the one state that does not mandate automobile insurance coverage. Nonetheless, drivers who select to not purchase automobile insurance coverage should show they’ve adequate funds to fulfill the state’s financial responsibility requirements (PDF) within the occasion they trigger an accident. Failure to fulfill the state’s necessities may end up in the suspension of their license and registration.

In Virginia, automobile insurance coverage is required, however drivers are allowed to choose out of the state’s insurance coverage necessities in the event that they pay a $500 uninsured motorist fee annually. This payment would not present protection — at-fault drivers are nonetheless accountable for damages.

Reevaluate Each Protection and Insurance coverage Supplier

Investopedia: You touched on the notion of reevaluating protection. How usually and when must you do that reevaluation?

Heller: I feel there are two sorts of reevaluation. One is the protection in your automobile. The opposite is the insurer you employ. The auto insurance coverage market is an odd one. It competes via promoting moderately than via worth. So, we see Geico and Progressive and State Farm and all these firms duking it out with humorous characters and athletes, telling us how nice they’re. Their costs are wildly completely different, relying in the marketplace and relying on you and the ZIP code you reside in. I’d say, each two or three years store your insurance coverage coverage.

While you store for an organization, you additionally have to reevaluate your protection. It’s not simply whether or not your automobile’s worth has declined and also you not want collision protection. Your individual private monetary state of affairs might have modified, and it’s possible you’ll need to broaden or lower your legal responsibility protection. Merely put, in the event you misplaced your job, misplaced your property, and have spent down your financial savings, you don’t have that a lot in property to guard and decreasing legal responsibility protection to economize.

Equally, in case your property have elevated, it’s possible you’ll need to broaden your legal responsibility protection. Ask your self if the protection you will have is sufficient now that you’ve got extra wealth to guard.

5. What are states that dont require drivers to have automobile insurance coverage

2 states don’t mandate auto insurance coverage, New Hampshire and Virginia. However all states, together with these 2 have a Monetary Accountability Regulation, that claims that in the event you 17 solutions  ·  0 votes: There are two states that don’t require auto insurance coverage. Properly… kind of. don’t. require. (14)

Auto insurance coverage exists to guard your property — For those who’ve financed your automobile, your lender might require the minimal limits mandated by most states.(15)

State, Insurance coverage required (1), Minimal legal responsibility limits (2). AL, BI & PD Liab, 25/50/25. AK, BI & PD Liab, 50/100/25. AZ, BI & PD Liab, 15/30/10. AR, BI & PD Liab, (16)


Whereas there isn’t any obligatory regulation that requires its residents buy auto insurance coverage, residents have to have the ability to show their capacity to pay for damages within the occasion of an auto accident if they’re those at fault.

This may be achieved in a lot of methods:

  • The motorist can carry legal responsibility insurance coverage on the automobile
  • They’ll put a money deposit of $60,000 or extra down with the Wisconsin Department of Transportation
  • They’ll file a bond with the Wisconsin Division of Transportation as effectively

If a motorist occurs to get stopped in Wisconsin by a police officer with out insurance coverage, an impartial investigation will probably be led by the Wisconsin Division of Transportation and the case will probably be put below evaluation.

Minimal Necessities In Different States

You’re more likely to see comparable breakdowns of liability auto insurance like those we talked about for the states the place automobile insurance coverage is just not obligatory. All different states require minimums for legal responsibility. This covers prices when you find yourself at fault for an accident.

Different states may require:

  • Private harm safety (PIP): Covers prices on your personal medical payments and misplaced wages in the event you stay in a no-fault state
  • MedPay: Covers medical prices past what your medical health insurance covers
  • Uninsured/underinsured Motorist (UM/UIM): Covers you when you find yourself in an accident with one other driver who doesn’t carry legal responsibility insurance coverage or doesn’t carry sufficient insurance coverage

Necessities fluctuate relying on whether or not the state is in a standard fault or no-fault state. No-fault states require every occasion to hunt medical protection from their very own automobile insurance coverage firms.

So, which state has the bottom auto insurance coverage? In 2016, the Insurance coverage Info Institute (III) discovered Idaho to be the least costly state with a median annual expenditure of $599.77 for drivers.

Use the software beneath or name (844) 246-8209 to gather and evaluate automobile insurance coverage quotes from suppliers accessible in your state:


What choices do I’ve in these states?

In Virginia, you even have the choice to buy a bond or deposit money with the state as an alternative of buying automobile insurance coverage. For those who do that, you’re primarily proving monetary stability to your state. In reality, you are able to do this with a lot of different states as effectively. The entire following states that permit bonds or money deposits in lieu of automobile insurance coverage embrace:

  • Alabama
  • Arizona
  • California
  • Colorado
  • Delaware
  • Idaho
  • Indiana
  • Iowa
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • New Mexico
  • New York
  • North Carolina
  • Ohio
  • Oklahoma
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington

Every state has its personal bond or money deposit requirement, however all are fairly vital. In Virginia it’s $50,000, and in lots of states it’s significantly extra (Utah, for instance, requires a bond or money deposit of $160,000).

The bond or money deposit is used within the occasion that you simply trigger an accident. Any quantity paid to an injured occasion have to be instantly repaid with curiosity again to the state.

There are clearly many variations between bonds and automobile insurance coverage. One of many extra attention-grabbing ones, nonetheless, is that the bond applies to you and never your automobile. This implies you possibly can drive any automobile you need with a bond and never fear about whether or not or not you’re coated.

You Don’t Have To Resolve This on Your Personal – Get a Lawyer’s Assist

Assembly with a lawyer will help you perceive your choices and the right way to finest shield your rights. Go to our attorney directory to discover a lawyer close to you who will help.

Or contact an legal professional close to you: