What states is it illegal to not have car insurance?
In every state — except for Virginia and New Hampshire — drivers are required to carry some form of auto insurance. If you get caught driving without insurance in state that requires it, you can be subject to large fines, the cancellation of your license or car registration and even jail time.
Although New Hampshire and Virginia are the only states with no auto insurance requirements, Florida and New Jersey are the other two that don't require bodily injury liability, which pays for the other party's injuries in the event of an accident that you caused.
Driving without insurance is against the law in virtually every U.S. state.
Car insurance laws are set and enforced at the state level, and 49 of the 50 states in America require all drivers to carry an active car insurance policy. New Hampshire is the only state in which you are not legally required to have car insurance, as long as you can show proof of financial responsibility.
| State | Is self insurance allowed? | What are the self insurance requirements for the state? |
|---|---|---|
| Alaska | Yes | Drivers with 25 or more vehicles |
| Arizona | Yes | Drivers with 10 or more vehicles |
| Arkansas | Yes | Drivers with 25 or more vehicles |
| California | Yes | Individual drivers with 1 or more vehicles |
Car insurance is mandatory in almost every state. State minimums and coverage types vary, but nearly all states that mandate insurance require liability coverage for property damage and bodily injury. The sole exception is Florida, which only requires liability coverage for property damage, in addition to PIP coverage.
Car insurance is mandatory in 48 out of 50 states. In New Hampshire, you're not required to have car insurance as long as you can prove your financial responsibility to cover the injuries and property damages of other parties in a car accident that you're at fault for.
Since driving without insurance in the state of Florida is illegal, choosing to drive without it is literally a violation of the law. In addition to your license being suspended, your registration and plates can also face a suspension.
You're required to carry car insurance while driving in Texas. If you don't have auto insurance, you could get a fine of up to $1,000, your vehicle impounded for up to 180 days and your driving privileges suspended for up to two years.
By investing a small amount now in your own protection, you can help avoid costly expenses in the future. Coverages such as collision insurance, comprehensive insurance, property damage liability and bodily injury liability can help cover the costs of expensive claims if an accident happens.
What is the #1 auto insurance in the US?
State Farm is the largest auto insurance company in the U.S. based on market share, according to the National Association of Insurance Commissioners (NAIC). It enjoys the highest average J.D. Power score of the large insurers, making it best-in-class for customer satisfaction.
In the United States, automotive insurance covering liability for injuries and property damage is compulsory in most states, but different states enforce the insurance requirement differently.
Self-insured means you can pay for losses. When you do not have insurance and you can't pay for losses, you're uninsured rather than self-insured.
Self-insurance can provide cost savings, flexibility, control, and improved cash flow. However, it also carries financial risk, administrative burden, resource challenges, and the possibility of unforeseen (or catastrophic) losses.
With self-insurance, you pay for a cost such as a medical procedure, water damage, theft, or a fender bender out of your own pocket rather than filing a claim under your policy with an insurance company.
Liability insurance is generally the cheapest car insurance coverage because it only covers the costs of bodily injuries and property damages for another party if you're at fault for an accident. It doesn't cover damages to your vehicle or costs associated with your injuries.
The only state in which electronic proof of insurance is not explicitly accepted is New Mexico.
- Per-occurrence limits: The maximum amount an insurer will pay for a single event/claim.
- Per-person limits: The maximum amount an insurer will pay for one person's claims.
- Combined limits: A single limit that can be applied to several coverage types.
Some of the car insurance inflation in the US can be explained by a pause in premium increases during the pandemic and the widespread parts shortages that hobbled the entire auto industry. But much of the cost pressure for insurers is because vehicles have taken a high-tech turn.
It's against the law to drive without car insurance in Tennessee (unless you have posted the required $65,000 bond or cash deposit to forgo an insurance policy). If you get caught driving without at least the minimum amount of coverage, you'll have 30 days to provide proof of your insurance.
When did car insurance become a thing?
Gilbert J. Loomis holds the distinction of being the first person to buy an automotive liability insurance policy in 1897, according to the Ohio Historical Society. The policy, which was issued in Dayton, Ohio, protected Loomis if his car damaged property or injured or killed an individual.
Although some traffic crimes are frequently prosecuted as criminal offenses in Florida, driving without car insurance isn't one of them. However, it can quickly spiral into a criminal charge if your license is suspended and you continue to drive.
If you are caught driving without insurance, your license can be suspended for up to three years, until you pay $150 and show proof of insurance to get back your license. If this occurs a second time within three years, you'll be charged $250. If it happens three times within three years, the fee goes up to $500.
State Farm offers the cheapest car insurance rates in Florida. On average, you can expect the rates from the company to be $650 per year for minimum liability policies and $1,813 per year for full coverage plans.
California drivers must at least meet the liability auto insurance coverage requirements of 15/30/5 to drive legally. You can be fined up to $500 out of pocket if you are convicted of driving without insurance in California, depending on whether it's your first or subsequent offense.
