Do You Have to Have Car Insurance? What the Law Requires in Every State
Do you have to have car insurance? Many drivers wonder what legal obligations they have when it comes to taking out an auto insurance policy.
Car insurance offers important financial protection and coverage in the event of an accident, theft, or vandalism. It can cover both medical expenses and property damage. This guide will explain if you have to have insurance to register a car, state-specific variations in coverage types and minimum limits, and the potential consequences of driving without auto insurance.
Understanding Car Insurance Requirements
Each state has different requirements when it comes to car insurance. It is critical to understand your state's specific rules and regulations when it comes to car insurance that meets a minimum standard of financial responsibility. On the whole, driving without car insurance is a dangerous proposition.
Which States Do Not Require Car Insurance?
Do you need to have car insurance to buy a car? New Hampshire is unique in that it does not require car insurance. However, you still need to demonstrate that you can meet the state's financial responsibility requirements if you are in an accident. Most New Hampshire drivers wisely choose to purchase car insurance to protect themselves and others in the case of an accident or other related vehicle damage.
Every other state requires some form of minimum insurance coverage.
Alternatives to Car Insurance by State
If you are interested in alternatives to car insurance, check out the options in your state:
| State | Bond or deposit instead? | Self-insurance instead? |
|---|---|---|
| Alabama | $50,000 | For owners of more than 25 vehicles |
| Alaska | $50,000 | For owners of more than 25 vehicles |
| Arizona | $40,000 | For owners of more than 10 vehicles |
| Arkansas | No | For owners of more than 25 vehicles |
| California | No | For owners of more than 25 vehicles |
| Colorado | $35,000 | For owners of more than 25 vehicles |
| Connecticut | No | For owners of more than 25 vehicles |
| Delaware | $40,000 | For owners of more than 15 vehicles |
| District of Columbia | No | For owners of more than 25 vehicles |
| Florida | No | Available to anyone with a net unencumbered worth of at least $40,000 and financially responsible for potential losses |
| Georgia | No | Available for owners of one or more vehicles |
| Hawaii | No | Available to any motor vehicle owner |
| Idaho | $50,000 of which $15,000 is for property damage up to a maximum of $120,000 for five or more vehicles | For owners of more than 25 vehicles |
| Illinois | No | For owners of more than 25 vehicles |
| Indiana | $50,000 in cash or securities that may legally be purchased by savings banks | No |
| Iowa | No | For owners of more than 25 vehicles |
| Kansas | No | For owners of more than 25 vehicles |
| Kentucky | No | For owners of more than 25 vehicles |
| Louisiana | $55,000 | For owners of more than 25 vehicles |
| Maine | No | Available to owners of one or more vehicles |
| Maryland | No | No |
| Massachusetts | $40,000 | No |
| Michigan | No | For owners of more than 25 vehicles |
| Minnesota | No | For owners of more than 24 vehicles |
| Mississippi | $75,000 | No |
| Missouri | $60,000 | No |
| Montana | $55,000 | For owners of more than 25 vehicles |
| Nebraska | $75,000 | For owners of more than 25 vehicles |
| Nevada | No | For owners of more than 10 vehicles |
| New Hampshire | n/a | n/a |
| New Jersey | No | For owners of more than 25 vehicles |
| New Mexico | $60,000 | Available to any vehicle owner |
| New York | $25,000 | For owners of more than 25 vehicles |
| North Carolina | $85,000 | For owners of more than 25 vehicles |
| North Dakota | No | Available to any vehicle owner |
| Ohio | $30,000 | For owners of more than 25 vehicles |
| Oklahoma | $75,000 | For owners of more than 25 vehicles |
| Oregon | No | For owners of more than 25 vehicles |
| Pennsylvania | $50,000 and $10,000 for each additional vehicle, maximum of $1,000,000 | Available to any vehicle owner |
| Rhode Island | $75,000 | For owners of more than 25 vehicles |
| South Carolina | $35,000 | For owners of more than 25 vehicles |
| South Dakota | $25,000 | For owners of more than 25 vehicles |
| Tennessee | $65,000 | For owners of more than 25 vehicles |
| Texas | $55,000 | For owners of more than 25 vehicles |
| Utah | $200,000 plus $100 for each motor vehicle up to 1,000 vehicles; $50 for every motor vehicle over 1,000 motor vehicles | For owners of more than 24 vehicles |
| Vermont | $115,000 | For owners of more than 15 vehicles |
| Virginia | $50,000 | For owners of more than 20 vehicles |
| Washington | $60,000 | For owners of more than 25 vehicles |
| West Virginia | No | For owners of more than 25 vehicles |
| Wisconsin | $60,000 | For owners of more than 25 vehicles |
| Wyoming | $200,000 plus $100 for every car | For owners of more than 25 vehicles |
| Sources: State DMVs, state statutes and the American Property Casualty Insurance Association |
Types of Required Car Insurance Coverage
Most states require the following types of car insurance, chiefly motor vehicle liability insurance:
Liability insurance for bodily injury: The typical minimum is $100,000 for bodily injury liability insurance per person and $300,000 per accident for bodily injury liability car insurance.
Property damage liability insurance: Most states require $100,000 of liability insurance for property damage.
Uninsured/underinsured motorist coverage: $100,000 per person for bodily injury liability and $300,000 per accident for bodily injury liability are common minimums across the United States.
You may also choose to add collision coverage and comprehensive coverage as well as medical payments coverage.
Do you have to have insurance to rent a car? Again, you need to comply with state laws, which means the answer is very likely "yes."
Penalties for Failing to Comply with Insurance Requirements
The penalties for failing to comply with insurance requirements can be significant. You can face consequences ranging from fines to license suspension to jail time for repeat offenses. Your insurance rates will also go up. Fortunately, cheap car insurance can often meet state requirements.
Staying Compliant at the Best Price
EverQuote can help you find the best insurance and stay compliant at the best price. If you are looking for car insurance discounts and insurance that works with your budget, check out our free custom comparison quotes.
You can compare car insurance quotes side by side to find the best option for your current and future driving needs. You can also save more by bundling your auto and home insurance.
Visit EverQuote today to get started!