States With No Auto Insurance Requirement

Driving without insurance in Virginia and New Hampshire is legal. But there are some liability requirements drivers must adhere to.

Virginia

• What’s required instead of auto insurance: Instead of auto insurance, you have to pay the Department of Motor Vehicles (DMV) a $500 Uninsured Motor Vehicle Fee.¹
• Who’s required to get auto insurance: Drivers with SR22s or FR44s must buy auto insurance. An SR22, proof of the minimum coverage in Virginia, is required if you have an unsatisfied judgment against you or an uninsured motor vehicle suspension, or you’ve been convicted of:
  • Failure to provide proof of insurance associated with insurance monitoring
  • Falsifying an insurance certification

  SR22s are also be required if your driver’s license has been suspended due to:

  • Conviction for voluntary or involuntary manslaughter from operating a motor vehicle
  • Perjury to the DMV regarding motor vehicle registration or a driver’s license application
  • Felony under motor vehicle law
  • Hit and run
  • Driving for rent or hire without a license

  An FR44, which requires double the minimum coverage, is required if you’ve been convicted of:

  • Maiming while under the influence
  • Driving under the influence of intoxicants and/or drugs
  • Driving while your license has been forfeited for a conviction or while you have been found not innocent for a juvenile
  • Violating federal law, the law of any other state, or any valid local ordinance similar to the above
• Minimum auto insurance requirements: If you decide to get auto insurance in Virginia (or if you’re forced to), the minimum coverage is bodily injury liability of at least $30,000 per person and $60,000 per accident, or property damage liability of at least $20,000.¹ These laws are effective January 1, 2022, through December 31, 2024.

New Hampshire

• 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:
  • $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 depositing money or securities into a banking account and sending the receipt to the state treasurer. If you’re using securities, you can buy them from a savings bank or retrieve them from a trust fund.³

• Who’s required to get auto insurance: Auto insurance for drivers who have an SR22, which include those who have:
  • Been convicted of driving while intoxicated
  • Been decertified as habitual offenders
  • Appeared at hearings for certain offenses like Demerit Points
  • Been found at fault for uninsured accidents
  • Left the scene of an accident
  • Had poor conduct after an accident
  • Had a second offense of reckless operation⁴
• Minimum auto insurance requirements: Bodily injury 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 your liability coverage, a minimum of $100,000.

Is Not Having Insurance Illegal?

Not having insurance is illegal in every state except New Hampshire and Virginia. That’s why when you’re at a dealership, buying a car requires insurance in order for you to leave the lot.

To find out your state’s minimum coverage requirements, read our full auto insurance guide. Or read on to find out the states with the least strict requirements.

States With Minimal Car Insurance Requirements

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.

Florida

The minimum car insurance in Florida is:

• Property damage coverage: $10,000
• Medical payments coverage: $10,000 per person, $10,000 per accident

New Jersey

The minimum coverage in New Jersey is:

• Property damage coverage: $5,000
• Medical payments coverage: $15,000 per person, $15,000 per accident⁵

Whether or not you purchased car insurance or its alternatives in Virginia and New Hampshire, you’ll need to have proof of financial responsibility if you get stopped while driving. This can be done by showing 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 Virginia and New Hampshire who choose not to purchase auto insurance must demonstrate that they paid the Uninsured Motor Vehicle Fee or the Motor Vehicle Financial Responsibility Requirements, respectively. Drivers should be sure to receive a certificate to show proof of financial responsibility in either state.

Most people won’t get to decide if they want auto insurance, as 48 states require it. However, if you’re on the fence, let’s break down the costs and benefits of having insurance versus not having insurance.

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. 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.

You’ve read about all of the minimum coverage requirements, but what do they actually entail if you have a covered claim?

• Bodily injury coverage: Pays for the other party’s injuries in an at-fault accident.
• Property damage coverage: Pays for the other party’s property damages in an at-fault accident.
• Medical payments coverage: Pays for the insured’s medical bills regardless of who was at fault.
• 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.

While minimum coverage is all you need to avoid trouble with the law, we recommend adding on full coverage.

Full Coverage

Unlike liability, full coverage includes:

• Bodily injury coverage
• Property damage coverage
• Uninsured/underinsured motorist coverage
• Medical payments coverage
• Collision coverage: Collision coverage pays for your property damage in the event of an at-fault accident.
• Comprehensive coverage: Comprehensive coverage pays for damages to your car from events other than collisions, such as theft, vandalism, hail, floods, sinkholes, etc.

Minimum requirements aren’t the only laws surrounding auto insurance. While we can’t provide an exhaustive list of all state auto insurance laws, here is a general overview:

• Credit scores: It’s illegal to use credit scores to determine auto insurance premiums in four states: Massachusetts, Hawaii, Michigan, and California. Learn more about car insurance laws in Massachusetts.
• Gender: Similarly, in every state except California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania, men pay more for car insurance. That’s because 43 states have no laws preventing auto insurance companies from gender discrimination when determining auto insurance premiums.⁶
• 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.
• 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 requirement (or lack thereof) is only the first step. Next, you have to decide which coverages and limits are best for you. If you’re not sure where to start, an agent can help you decide which coverages you need and how much you’ll pay for them.