Auto Insurance: States Without Mandatory Coverage Laws

In the United States, auto insurance is mandatory in most states. However, there are a few exceptions where drivers are not required by law to have auto insurance. As of July 2024, the only state that doesn't mandate auto insurance is New Hampshire. Prior to that, Virginia was also on this list, but now requires drivers to either have insurance or pay an uninsured motor vehicle fee. In New Hampshire, driving without insurance is completely legal, but there are some liability requirements that drivers must adhere to.

New Hampshire is the only state where auto insurance is not mandatory

New Hampshire: The Only State Where Auto Insurance Is Not Mandatory

As of July 1, 2024, New Hampshire is the only U.S. state where auto insurance is not mandatory. In the majority of U.S. states, drivers are legally required to have some level of auto insurance. However, New Hampshire is an exception to this rule, as driving without insurance is legal in the state. Despite this, there are still some important requirements and considerations for drivers in New Hampshire to keep in mind.

Financial Responsibility Requirements

Although auto insurance is not mandatory in New Hampshire, drivers in the state must still adhere to Motor Vehicle Financial Responsibility Requirements. These requirements mandate that drivers must be able to cover a certain amount of liability in the event of an accident. Specifically, drivers must be able to cover $100,000 per registered vehicle, including $25,000 for bodily injury liability for accidents involving one person, $50,000 for accidents involving two or more people, and $25,000 for property damage liability.

To prove that they meet these financial requirements, drivers can provide a receipt from the state treasurer confirming that they have deposited the required amount of money or securities into a banking account. This documentation must then be sent to the New Hampshire Department of Safety. It is important to note that securities must be legally purchased by savings banks or for a trust fund.

Auto Insurance as a Viable Option

While auto insurance is not mandatory in New Hampshire, it is still a recommended option for drivers. If drivers are unable to meet the Financial Responsibility Requirements with their own funds, they may need to purchase a standard auto insurance policy. Additionally, drivers with a history of driving while intoxicated (DWI), leaving the scene of an accident, or exhibiting poor conduct after an accident may be required to obtain an SR-22 form and maintain auto insurance.

For those who choose to purchase auto insurance in New Hampshire, there are minimum coverage requirements to consider. These include bodily injury liability coverage of $25,000 per person and $50,000 per accident, property damage coverage of $25,000, medical payments coverage of $1,000, and uninsured motorist coverage equal to the driver's liability coverage.

In summary, while New Hampshire stands out as the only state where auto insurance is not mandatory, drivers in the state still have important financial responsibilities and considerations to keep in mind when it comes to operating a motor vehicle.

Virginia is the only other state that doesn't require car insurance

Virginia and New Hampshire are the only two states in the US that don't require drivers to have car insurance. However, Virginia is the only state that doesn't require drivers to either have insurance or prove financial responsibility. In New Hampshire, drivers who don't have insurance must provide proof of financial responsibility to the value of $75,000, which can be done by depositing cash or securities.

Until July 1, 2024, Virginia allowed drivers to pay a fee to the state in lieu of carrying auto insurance. Now, drivers in the state must either buy traditional car insurance or pay a $500 Uninsured Motor Vehicle (UMV) fee to the Virginia DMV when they register their car and annually thereafter. This fee doesn't provide any insurance coverage and simply waives the requirement to purchase a minimum amount of insurance from a provider. Drivers who don't pay the UMV fee and don't have insurance will have their license and registration suspended.

While it's not compulsory, most drivers in Virginia and New Hampshire still choose to purchase car insurance to protect themselves financially.

Virginia drivers can pay a $500 fee to the state instead of buying insurance

In the United States, nearly every state requires drivers to have some level of auto insurance. As of July 1, 2024, New Hampshire is the only state that does not require drivers to have auto insurance.

Prior to July 1, 2024, Virginia was the other state besides New Hampshire that did not require auto insurance. Instead, Virginia drivers could pay a $500 fee to the state each year to register an uninsured vehicle with the Virginia Department of Motor Vehicles. This option was available to drivers who could not afford insurance or chose not to have it. However, driving without insurance in Virginia is risky as uninsured motorists are held financially responsible for all property damage, injuries, and other accident-related expenses if they get into a car crash.

As of July 1, 2024, Virginia drivers are now required to have car insurance. This change in legislation was sponsored by former state senator Frank Ruff, who agreed with his constituents that it was unfair for good drivers to pay more for insurance than those with a record of bad driving. The new law will not stop all motorists from driving without insurance, but it will provide better protection for drivers who are involved in a wreck that is not their fault.

While auto insurance is not mandatory in New Hampshire, residents are still responsible for paying up to $50,000 for liability and $25,000 for property damage in the event of a car accident. Drivers who cannot pay for damages can have their licenses and registrations suspended.

New Hampshire drivers can post cash bonds or hold savings accounts to cover liability limits

In the US, nearly every state requires drivers to have some level of auto insurance. As of July 1, 2024, New Hampshire is the only state that does not mandate auto insurance. Driving without insurance is completely legal in New Hampshire, but there are some liability requirements that drivers must follow.

New Hampshire drivers who choose not to purchase auto insurance must demonstrate that they can meet the state's Motor Vehicle Financial Responsibility Requirements, which total $100,000 per registered vehicle. This includes a $25,000 bodily injury liability limit for accidents involving one person, a $50,000 bodily injury liability limit for accidents involving two or more people, and $25,000 worth of property damage liability.

Drivers can prove they have the required funds by obtaining a receipt from the state treasurer, confirming the deposit of the necessary amount into a banking account. This receipt is then sent to the New Hampshire Department of Safety. Alternatively, drivers can post cash bonds or hold savings accounts to cover these liability limits.

If a driver cannot fulfil the Financial Responsibility Requirements with their own funds, they will need to satisfy them with a standard auto insurance policy. Additionally, drivers with a history of driving under the influence (DUI) or other offences, such as leaving the scene of an accident or reckless operation, will be required to have an SR-22 on file and obtain auto insurance.

While New Hampshire does not mandate auto insurance, residents are still responsible for paying for bodily injury and property damage they cause in an accident. Therefore, purchasing auto insurance is the easiest way to ensure financial protection in the event of an accident.

Mississippi offers vehicle owners the option to post cash bonds

Mississippi is one of the 49 out of 50 states that require drivers to have some level of auto insurance. However, the state offers vehicle owners the option to post cash bonds instead of purchasing car insurance. This option is also available in several other states.

In Mississippi, a vehicle owner can choose to purchase a bond for a set amount of money that will be used in case of an accident. If an accident occurs, the bond covers the expenses up to its limit, and the driver then has to repay the money paid out, plus interest. This option is associated with the driver, not the car, so the driver can operate any vehicle. However, in the event of an at-fault accident, the driver is required to repay the expense in full, plus interest, which can quickly add up.

While Mississippi does require drivers to have auto insurance or an alternative like a cash bond, the state does not require personal injury protection (PIP) or uninsured/underinsured motorist insurance. Collision and comprehensive coverage are also optional in Mississippi, although they are highly recommended as they cover damage to your car even if you are at fault.

It is important to note that driving without insurance or an alternative like a cash bond can result in fines, penalties, license suspension, and other consequences. Mississippi vehicle owners should carefully consider their options and ensure they have the necessary coverage or financial responsibility in case of an accident.

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