What States Don’t Require Car Insurance?

Key Points:

• New Hampshire is the only state that provides alternatives to carrying minimum car insurance limits.
• But even in New Hampshire, there are penalties for causing an accident without insurance.
• It’s often cheaper to get minimum coverage than it is to risk the considerable costs of being in an accident without insurance.

As of July 1, 2024, New Hampshire is the only state that doesn’t require car insurance. All states set minimum coverage requirements, including New Hampshire. In that state alone, drivers are given an alternative option for purchasing car insurance. Even though insurance is not required, most New Hampshire drivers purchase a policy to protect them financially.

In this guide, we’ll explore the car insurance laws of New Hampshire and provide tips for finding the right policy in the Granite State. We’ll also explain the risks of driving without insurance (in any state) and provide recommendations on the best car insurance providers.

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What States Don’t Require Car Insurance?

As of July 1, 2024, New Hampshire is the only state that doesn’t require car insurance coverage. In New Hampshire, vehicle owners have the option to post cash bonds or hold savings accounts to cover liability limits. All other states require some form of car insurance such as liability or personal injury protection, depending on the related laws in the state.

While car insurance coverage was not previously required in Virginia, a new law enacted on July 1, 2024, now makes minimum liability coverage mandatory.

New Car Insurance Laws In Virginia

Virginia used to offer drivers two choices: buy traditional car insurance or pay a $500 Uninsured Motor Vehicle Fee (UMV) to the Virginia DMV at the time of registration (and annually thereafter). 

But as of July 1, 2024, the state now requires all drivers to carry a minimum amount of insurance.

The current minimum requirements for Virginia car insurance are: 

• $30,000 bodily injury liability insurance (BI) per person
• $60,000 bodily injury liability insurance per accident
• $20,000 property damage liability insurance (PD)

Starting January 1, 2025, these minimums will increase to:

• $50,000 bodily injury liability insurance (BI) per person
• $100,000 bodily injury liability insurance per accident
• $25,000 property damage liability insurance (PD)

These new requirements are based on a bill that was passed in 2023. Effective July 1, 2024, drivers must purchase a minimum-liability policy and they will need to increase those limits in January 2025.

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New Hampshire Car Insurance Requirements

To drive legally in New Hampshire, you must either get approved to waive requirements or pay a fee. New Hampshire is an at-fault state, which means the person who causes the accident must cover any injuries to other drivers and their passengers as well as property damage costs.

Car Insurance Laws In New Hampshire

Though the New Hampshire DMV strongly recommends purchasing car insurance, you can receive approval to waive insurance by providing cash or securities in the liability amounts. You can also technically drive without doing either of these–provided you have enough money to cover liability limits. If you cause an accident, you’ll have to pay for the other party’s medical bills and property repairs. If you’re unable to pay for damages, you can be sued and lose your license.

There are a few groups of drivers that are commonly denied this exemption, however. For example, you may be required to purchase insurance if you have a history of DUIs, have caused accidents while without car insurance in the last three years, or have certain traffic-related convictions.

But because car insurance is not mandatory in New Hampshire, even those who have been denied can contact the Bureau of Financial Responsibility to appeal their case after a certain amount of time. 

Below are the minimum liability requirements for those purchasing car insurance in New Hampshire:

• $25,000 bodily injury liability insurance per person
• $50,000 bodily injury liability insurance per accident
• $25,000 property damage liability insurance (PD)
• $1,000 in medical payments coverage (MedPay)
• Uninsured motorist coverage equal to liability coverage

What Happens If You Cause An Accident Without Insurance In New Hampshire?

While New Hampshire is the only state that doesn’t require car insurance, you’re not off the hook. If you cause an accident, you’re responsible for covering the damage and medical bills of the other party. If you can’t cover the costs, you may be on the receiving end of a lawsuit.

What You Need To Drive Legally In New Hampshire

In New Hampshire, you need to provide proof of financial responsibility that meets the minimum insurance requirements in the state. In other words, you need at least $75,000 in an account to prove that you’re able to cover up to $50,000 of bodily injury liability per accident and $25,000 of property damage liability. You can do this with the use of securities or by depositing cash with the state. If you cannot meet these requirements–and don’t purchase car insurance–your license and registration can be suspended.

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Risks Of Not Having Car Insurance

Although it may seem like you could save money by not having car insurance, the cost of a single accident could potentially be financially devastating.

In a state like New Hampshire, you can forego car insurance if you can prove you have enough money in the bank to cover potential losses. But even if you have significant savings, an accident could deplete those quickly, particularly if anyone is injured. Think about the cost of ambulances, emergency rooms, and ongoing rehabilitation following a serious injury.

At its core, car insurance is really intended to protect you and your finances. So while it may seem tempting to avoid the hassle and the monthly premiums, you could end up much worse off financially in the long run.

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Some States May Allow Bonds In Place Of Car Insurance

Though 49 states require car insurance, there are a handful of places that allow you to purchase bonds in its place (but typically only if you have 10-25 vehicles). In other words, you can have self-insured car insurance.

How do bonds work in this scenario? On a very basic level, a surety bond combines the concepts of insurance and bank loans. Let’s say you want to buy a $50,000 surety bond. Depending on your credit score, you will be asked to pay a down payment anywhere from one to 15 percent as a premium. If you suddenly need the full $50,000–in the event of an accident such as in the event of causing an accident–the bond provider pays the $50,000, and you are on the hook for paying the provider back.

With a bond option, you’re still responsible for covering the cost of any damage you cause, but the bond provider puts some of the money up first. Again, this isn’t a viable option unless you have significant cash resources.

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What Car Insurance Do Other States Require?

How much car insurance you need depends on your state’s requirements. Minimum requirements usually extend to liability coverages–meaning those that cover injury to others and damage to other people’s property when you’re at fault for an accident. Minimum liability limits vary by state and are typically shown as three numbers side by side– $25,000/$50,000/$25,000, for example–indicating the amounts you need in bodily injury per person, bodily injury per accident, and property damage coverage. 

Other coverages that may be required by law include:

• Personal injury protection (PIP): Covers costs for your own medical bills and lost wages if you live in a no-fault state.
• MedPay: Covers medical costs beyond what your health insurance covers.
• Uninsured/underinsured Motorist (UM/UIM): Covers you when you are in an accident with another driver who does not carry liability insurance or does not carry enough insurance.

Check insurance information with your DMV to see the liability limits and other types of coverage required in your state.

Requirements vary depending on whether you live in a traditional fault or no-fault state. No-fault states require each party to seek medical coverage from their own car insurance companies.

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Is It Against The Law To Drive Without Car Insurance?

No matter where you live, you must adhere to car insurance laws. In New Hampshire, you can provide cash or securities to cover liability limits. In all other states, you need to have the minimum amount of car insurance required in that state. Not doing so comes with serious consequences, which can include all of the following: 

• Suspension of your license or registration
• Fines
• Impounded vehicle
• Points on your license
• Jail time
• Court fees and reinstatement fees

Because many drivers still choose to drive without insurance, despite the laws, uninsured and underinsured motorist (UM/UIM) coverage may be a good bet if you live in a state with a large percentage of uninsured drivers. These coverages protect your finances if you’re in an accident with someone who doesn’t have enough or any car insurance. 

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States That Don’t Require Car Insurance: Our Take

The only state that doesn’t require car insurance is New Hampshire. However, all drivers are held financially responsible for damages they cause, whether they have a car insurance policy or not. Our advice is to avoid driving without an auto insurance policy in any state. Car insurance can protect you, your vehicle, and your finances in the case of an incident. 

Our Recommended Auto Insurance Companies

There are dozens of insurance companies on the market, and another provider may offer you more affordable rates than your current one. We recommend comparing free quotes from at least three companies to find the cheapest and best option for you.

State Farm: Best Overall Provider

If you have a student driver in your house, State Farm auto insurance might be a good pick for you. The insurance company offers great discounts for student drivers and good driving behavior. It is also highly respected within the industry and receives positive feedback from customers.

Along with the six standard types of car insurance, State Farm offers roadside assistance, car rental and travel expense coverage, and rideshare insurance.

Read more in our State Farm insurance review.

Geico: Best For Basic Coverage

Though Geico auto insurance is known for its catchy ads, it’s also a top choice for extensive coverage and good prices. As one of the largest agencies in the country, customers have access to mobile features and a variety of car insurance discounts.

After you’ve fulfilled your state’s minimum car insurance requirements, take a look at Geico’s extra types of coverage including roadside assistance, rental car reimbursement, and mechanical breakdown insurance.

Read more in our Geico insurance review.

States Where Car Insurance Isn’t Required: FAQ

Below are some frequently asked questions about which states don’t require car insurance.

How We Rate Auto Insurers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
• Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.

*Data accurate at time of publication.*Data accurate at time of publication.

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