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What States Do Not Require Auto Insurance?

What States Do Not Require Auto Insurance - Car Insurance is a major cost of car ownership, but it is so important that most states require coverage. However, not all states require coverage, and many offer alternatives to insurance company coverage.

what states do not require auto insurance

What States Do Not Require Auto Insurance

Even if your state doesn't require car insurance, you're still taking a risk by driving without it. Insurance is there to protect you, and if you're found at fault in an accident, you'll be responsible for the costs. Your state may not fine you for driving without insurance, but you'll still end up paying out of pocket.


  • Car insurance is a necessity for most drivers, as most states require it by law. However, not all states have this requirement.
  • There are two states that don't require health coverage: New Hampshire and Virginia.
  • Car accidents are a costly affair, even if you don't have car insurance. You'll still have to pay for the damage to your car, the medical bills of those involved, and any legal fees.
  • If you don't want to have to pay for insurance, you'll likely need to show proof of financial responsibility.

Pros and Cons of Not Having Car Insurance

Pros of Having No Car Insurance

  • In the long run, you could save money if you don’t get into an accident.
  • You will not be affected by shifts in insurance rates.

Cons of Having No Car Insurance

  • Saving money by not having insurance could be risky—you would still be responsible for damages if you got into an accident.
  • Drivers who cannot afford to pay for damages may have their licenses and registrations suspended.

States With No Car Insurance Requirement

There are two states in the US where you don't have to have car insurance: New Hampshire and Virginia.

Car insurance is not mandatory in New Hampshire, but drivers are still responsible for damages if they are in a car accident. This includes up to $50,000 in liability and $25,000 in property damage. If drivers cannot pay for damages, their licenses and registrations will be suspended.

Virginia residents can choose to pay the state $500 per year to not have to get car insurance. However, this does not provide any accident coverage. The driver who caused the accident is still liable.

The Bond Option

Some states allow drivers to provide proof of financial responsibility in lieu of car insurance. This usually requires purchasing a bond for a set amount of money that will be used in case of an accident. In some states, a cash deposit can be used.

The driver will purchase the bond to cover the state’s requirements. If there is an accident, the bond will cover the expenses up to its limit. The driver must then repay the money paid out.

A car bond is associated with the driver, not the car. This way, the bond buyer can drive any vehicle they choose. There is a financial downside, though. If the driver is in an accident and deemed at-fault, they are required to repay the expenses in full plus interest.

Car accidents can be expensive, even if they are minor. If you get into a fender bender with another car, the damages might only cost a few hundred dollars. However, the other person may have whiplash, which could lead to months of medical expenses and physical therapy bills for you. Plus, you may have to pay legal fees.

Showing Proof of Financial Responsibility

People who choose not to have car insurance need to provide proof of financial responsibility like any other driver. Rather than carry insurance cards, they have to carry copies of their bonds and show them to the police if they are pulled over for traffic violations.

No one wants to get into an accident, but it's important to be prepared for the worst case scenario. If you're in a car accident and can't provide proof of car insurance or financial responsibility, your driver's license and registration will be suspended. 

You'll need to obtain proof of insurance or financial responsibility to get them reinstated. In some states, repeat offenders are required to have insurance coverage for a set amount of time.

Frequently Asked Questions (FAQs)

Why is car insurance required?

The main purpose of car insurance is to protect the victims in an accident. If you're at fault in an accident and don't have insurance, you may not be able to cover the costs of damages to property or people in the other vehicle. Liability coverage ensures that the other driver will be compensated for their damages.

Is car insurance compulsory in USA?

Drivers in the US are required by law to have car insurance. This law is set and enforced at the state level, meaning that each state has its own regulations. 49 of the 50 states require all drivers to carry an active car insurance policy.

What is the minimum required car insurance in most states?

A majority of states require business owners to have liability coverage for bodily injury and property damage. This insurance policy protects the other driver if you are at fault in an automobile accident. The amount of required liability coverage varies by state, and some states also require uninsured motorist or personal injury protection coverage.

What insurance is required for a financed car?

If you finance a car purchase, your lender will probably require you to carry more insurance coverage than what is required by your state. A lender wants to ensure that the collateral for the loan—your car—is protected. Most lenders will require you to carry comprehensive and collision coverage until the loan is paid off.

Does Florida require car insurance?

Yes, car insurance is required in Florida. In every state except for Virginia and New Hampshire, it is the law to have some level of car insurance. For Florida drivers, it is mandatory to carry proof of insurance with you whenever you are behind the wheel and make sure it is up-to-date.

Which is the most important insurance to have?

Health insurance is an important type of insurance to have. If something goes wrong and you don't have health insurance, you could be risking your life.


You may be wondering if you need to purchase car insurance in your state. Wonder no more! Check out our list of states that do not require auto insurance in order to operate a vehicle. This information is always changing, so be sure to check back often to stay up-to-date.