Which States Require Car Insurance and Which Don't

Not all states require car insurance, but most do

Forty-nine states and Washington, D.C. require you to carry liability insurance to register and drive a car legally. New Hampshire is the only state that does not require insurance, though even there you must prove you can pay for damages if you cause an accident — usually by posting a bond or showing savings.

The states that require insurance all mandate the same basic coverage: liability insurance that pays for injuries and property damage you cause to other people. The minimum amounts vary by state, but every state sets a floor. If you drive without the required coverage, you face fines, license suspension, and registration cancellation.

Some states also require uninsured motorist coverage, which protects you if someone without insurance hits you. A few states require collision or comprehensive coverage if you have a loan on the car. Your lender typically requires those anyway.

Key Takeaways

• Forty-nine states require liability insurance; New Hampshire does not, but requires proof you can pay damages another way.
• Minimum liability limits vary by state, ranging from $15,000 to $50,000 per person for bodily injury.
• Driving without required insurance results in fines, license suspension, and registration cancellation in every state that mandates it.
• Some states require uninsured motorist coverage or other protections beyond basic liability.
• Your car loan or lease typically requires collision and comprehensive coverage regardless of state law.

Minimum liability coverage amounts by state

Every state that requires insurance sets a minimum amount you must carry. These minimums are written as three numbers — for example, 25/50/25 — representing bodily injury per person, bodily injury per accident, and property damage per accident.

Most states require $25,000 per person and $50,000 per accident for bodily injury. A few states set lower floors: Kentucky, Mississippi, and Missouri allow $25,000 per accident total (not per person). A handful set higher minimums: Maine requires $50,000 per person and $100,000 per accident. Property damage minimums typically range from $15,000 to $25,000.

These are the legal minimums only. They often fall short of actual costs if you cause a serious accident. Most insurance agents recommend carrying 100/300/100 or higher, especially if you have assets to protect.

New Hampshire's alternative to insurance

New Hampshire allows you to register and drive without insurance if you post a surety bond or deposit cash with the state. The bond amount is typically $60,000 to $100,000, depending on your driving record. You can also show proof of savings equal to the state's minimum liability limits.

In practice, very few people use this option because the upfront cost is high and the process is cumbersome. If you cause an accident, the state can claim against your bond or savings to pay damages. Most people in New Hampshire buy insurance because it costs less than maintaining a bond.

What happens if you drive without required insurance

Driving without insurance in a state that requires it carries when ready consequences. Police can cite you on the spot, and fines range from $100 to $500 in most states, with some states going higher. You may also face court costs and surcharges added to your registration renewal.

Your license and vehicle registration can be suspended within days of a citation. In many states, you cannot renew your registration until you show proof of insurance. If you are caught driving on a suspended license, penalties escalate to misdemeanor charges, higher fines, and possible jail time.

An uninsured accident creates a separate problem. If you cause damage and have no insurance, you are personally liable for all costs. The other driver can sue you for medical bills, lost wages, vehicle repairs, and pain and suffering. A judgment against you can lead to wage garnishment and asset seizure.

States with additional coverage requirements

Beyond the basic liability requirement, some states mandate extra protections. Uninsured motorist coverage is required in about 20 states and covers your medical bills and lost wages if an uninsured or hit-and-run driver injures you. The coverage also pays for vehicle damage in some states.

A few states require medical payments coverage, which pays your medical bills regardless of who caused the accident. This coverage is optional in most states but mandatory in Florida, Kentucky, and a handful of others.

If you finance or lease a car, your lender will require collision and comprehensive coverage regardless of state law. Collision covers damage from accidents; comprehensive covers theft, weather, and vandalism. These are not state requirements — they are lender requirements — but they explore to most car owners because most people finance their vehicles.

How to verify your state's requirements

Your state's insurance commissioner or department of motor vehicles publishes the exact minimum coverage amounts and any additional requirements. You can find this information on your state DMV website, usually under a section titled "Insurance Requirements" or "Financial Responsibility."

Your insurance agent or company can also tell you what your state requires. When you buy a policy, the insurer will not let you purchase less than the state minimum — the system flags it automatically.

If you move to a new state, check the requirements before your current policy renews. Some states allow a grace period to update your coverage, but others do not. Updating your address with your insurer triggers a review of your coverage against the new state's rules.

What to do if you cannot afford insurance

If the cost of insurance is a barrier, several options exist. Low-mileage discounts reduce your premium if you drive fewer than 5,000 or 10,000 miles per year. Usage-based programs let you pay based on how safely you drive, tracked through your phone or a device in your car.

Many states run assigned risk pools or FAIR plans that provide insurance to people who cannot find coverage in the regular market. These policies cost more but are available to anyone. Your state insurance commissioner's office can direct you to your state's assigned risk pool.

Some nonprofits and community organizations offer insurance navigation help or can connect you with low-cost programs. Contact your local community action agency or 211 (a referral service) to ask about programs in your area.

Frequently Asked Questions

Can I drive someone else's car if I don't have insurance?

It depends on the car owner's policy. Most insurance follows the car, not the driver, so you would be covered under their policy if they give you permission to drive. However, if you cause an accident and the owner's insurer discovers you live in their household, they may deny the claim. Always tell the car owner's insurer that you live there and ask whether you need to be listed on the policy.

What if I only drive occasionally?

You still need insurance in every state except New Hampshire. Even occasional driving requires coverage because you cannot predict when an accident will happen. Some insurers offer low-mileage or pay-per-mile policies that cost less if you drive infrequently. Ask your insurer whether these options are available in your state.

Does my insurance cover me if I drive for a rideshare service?

Personal auto insurance does not cover rideshare driving. Uber, Lyft, and similar services provide coverage while you are actively transporting passengers, but there is a gap when you are logged in but waiting for a ride request. You need a rideshare endorsement on your personal policy or a commercial policy to close that gap and stay legal.

What if I have a suspended license but still need to drive?

Some states issue restricted licenses that allow you to drive to work, school, or medical appointments. You must still carry insurance, and the restricted license is only available if you meet specific conditions set by your state. Contact your state DMV to ask whether a restricted license is available and what you must do to obtain one.

Can I get insurance after I've already been caught driving uninsured?

Yes, but your rates will be higher. An uninsured driving citation is a serious violation that stays on your record for three to five years. Insurers view you as high-risk and charge accordingly. Some insurers will not cover you at all after an uninsured citation; others will but at a premium. Shop around with multiple companies because rates vary widely.