States With No Auto Insurance Requirement

Driving without insurance is legal in New Hampshire, but there are some liability requirements drivers must adhere to:

What’s required instead of auto insurance: Rather than purchasing auto insurance, you can demonstrate that you meet New Hampshire’s Motor Vehicle Financial Responsibility Requirements, which total $100,000 per registered vehicle:

• $25,000 bodily injury liability limit for accidents involving one person
• $50,000 bodily injury liability limit for accidents involving two or more people
• $25,000 worth of property damage liability.

You can prove you have the required funds by getting a receipt from the state treasurer confirming the deposit of the sufficient amount of money or securities into a banking account and sending it to the New Hampshire Department of Safety. Securities must be legally purchased by savings banks or for a trust fund.¹

Who’s required to get auto insurance: If you cannot fulfill the Financial Responsibility Requirements with your own funds, you’ll need to satisfy them with a standard auto insurance policy. If you finance or lease a car, you’ll likely also need to purchase car insurance with collision and comprehensive coverage. Auto insurance is also required, no matter what, for drivers who have an SR-22 on file, which include but are not limited to those who have:

• Been convicted of driving while intoxicated (DWI)
• Left the scene of an accident
• Had poor conduct after an accident
• Had a second offense of Reckless Operation²

Minimum auto insurance requirements: For those who purchase auto insurance, the following minimum amounts are required:

• Bodily injury liability coverage of $25,000 per person
• Bodily injury liability coverage of $50,000 per accident
• Property damage coverage of $25,000
• Medical payments coverage of $1,000, and uninsured motorist coverage equal to your liability coverage.

Is Not Having Insurance Illegal?

Not having insurance is illegal in every state except New Hampshire. That’s why buying a car requires insurance in order for you to leave the dealership lot in most states.

States With Minimal Car Insurance Requirements

New Hampshire is the only state with no auto insurance requirements, while Florida is the only one that doesn’t require bodily injury liability (which pays for the other party’s injuries in the event of an accident that you caused). Louisiana has lower liability limits than most other states.

Florida and Louisiana have some of the highest auto insurance rates in the country, in part because lower limits can lead to greater litigation. When policy limits are insufficient to cover damages and injuries, drivers often pursue lawsuits to recover the remaining costs, which drives up insurance premiums in these states. Natural disasters and Florida’s no-fault laws also contribute to high costs.

Florida

The minimum car insurance requirements in Florida are:

• Property damage coverage: $10,000 per accident
• Personal injury protection: $10,000 per person, $10,000 per accident³

Louisiana

Most states require a total of $100,000 in liability coverage—or $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $25,000 in property damage per accident. Louisiana’s requirements are among the lowest in the country, totalling only $70,000:

• Bodily injury liability: $15,000 per person/$30,000 per accident
• Property damage liability: $25,000 per accident

Whether or not you purchase car insurance or its alternatives in New Hampshire, you’ll need to have proof of financial responsibility if you get stopped while driving. This can include your insurance card. In all states except for New Mexico, you can show digital versions of your insurance card on your mobile phone.

Drivers in New Hampshire who choose not to purchase auto insurance must demonstrate that they satisfy the Motor Vehicle Financial Responsibility Requirements. Drivers should be sure to receive a certificate to show proof of financial responsibility.

Most people won’t get to decide if they want auto insurance (unless they break the law), as 49 states require it. In general, carrying auto insurance is a good idea, as it provides financial protection in the event of an accident. Here are some of the costs and benefits.

Technically, every state has a self-insurance option, which usually requires tens of thousands of dollars to obtain as well as more than 25 vehicles owned in some cases. While self-insurance isn’t an option for most people, it may be an option for businesses or organizations with large fleets of vehicles, such as universities. See below for your state’s self-insurance requirements.

What happens if you get into an accident with no insurance depends on whether you live in an at-fault (liability) or no-fault state.

In At-Fault States

In at-fault states, you are responsible for the other party’s property damage and bodily injury costs as well as your own. The victim can sue you for economic and non-economic damages.

In No-Fault States

In no-fault states, you have to pay for the other party’s property damage only as well as your own property damage and bodily injuries (covered by medical coverage/personal injury protection). The victim can only sue you for non-economic damages such as anxiety.

Here’s what minimum coverage requirements actually entail if you have a covered claim:

• Bodily injury coverage: Pays for the other party’s injuries in an at-fault accident up to your policy’s limit.
• Property damage coverage: Pays for the other party’s property damages in an at-fault accident up to your policy’s limit.
• Medical payments coverage: Pays for the insured’s medical bills regardless of who was at fault, up to your policy’s limit.
• Uninsured motorist coverage: Reimburses you for your bodily injury and property damage in a collision with an uninsured/underinsured motorist or a hit-and-run, up to your policy’s limit.

While minimum coverage is all you need to avoid trouble with the law, we recommend adding on full coverage. Your lender may require you to carry full coverage if you leased or financed your car.

Full Coverage 

In addition to liability coverage, full coverage also includes:

• Uninsured/underinsured motorist coverage, which pays for damages caused by a driver without sufficient insurance.
• Medical payments coverage, which pays for medical expenses for you and your passengers, regardless of fault.
• Collision coverage, which pays for your property damage in the event of an at-fault accident.
• Comprehensive coverage, which pays for damages to your car from events other than collisions, such as theft, vandalism, hail, floods, or fires.

Minimum Coverage

You might opt for minimum coverage if your car has a low market value and you can afford to cover repair or replacement costs out of pocket. This option is also more common for drivers who want to keep premiums low or rarely use their vehicle.

That said, it’s wise to increase your liability limits beyond the state minimum to protect your assets in case of a serious accident. Additionally, maintaining medical payments and uninsured/underinsured motorist coverage ensures you’re financially protected against medical expenses and drivers who lack sufficient insurance.

• Credit scores: Only four states prohibit providers from using credit scores to determine auto insurance premiums: Massachusetts, Hawaii, Michigan, and California.
• Gender: 43 states have no laws preventing auto insurance companies from gender discrimination when determining auto insurance premiums — the exceptions are California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania — which leads to men paying more for car insurance in some states, and women in others.⁴
• Negligibility: When it comes to negligibility, states can either have comparative negligence systems, meaning fault is split between two parties, or contributory negligence, which means that if the plaintiff acted negligently in any way, they can’t receive any compensation. Look up the laws in your state to learn more about seeking compensation after an accident.
• At fault vs. no fault: Whether your state has an at-fault or a no-fault system determines who pays for what in a car accident, and who can sue for what damages.
• Statutes of limitations for claims: States have different statutes of limitations for personal injury and property damage claims, meaning that you have a certain period of time to file a claim after an accident.
• Notifications of cancellations/non renewals: Insurance companies also have certain periods of time to notify you of a cancellation or nonrenewal of your current policy.

When it comes to auto insurance, knowing your state’s minimum requirements (or lack thereof) is a good first step. Then, you can decide which coverages and limits are best for you. If you’re not sure where to start, an agent can help you determine which coverages you need and how much you’ll pay for them. Ultimately, the best auto insurance is a policy you can afford and that provides enough financial protection in the event of an accident.