What states legally require car insurance?
Asked by: Darby Buckridge | Last update: May 2, 2025Score: 4.3/5 (42 votes)
What states are mandatory car insurance?
Almost every state in the U.S. requires drivers to have some form of car insurance. The only state that doesn't require car insurance is New Hampshire. Instead, drivers must prove they have enough funds to cover any costs if they cause an accident.
Is it illegal to not have car insurance in the USA?
Driving without insurance is against the law in virtually every U.S. state. The consequences of driving without insurance can vary dramatically, with penalties ranging from a slap on the wrist to large fines and even jail time.
Is it illegal to have out of state car insurance?
In general, your car must be registered and insured in the same state, since both vehicle registration and auto insurance are based on your permanent residence.
What state has the most drivers without insurance?
Mississippi has the highest uninsured motorist population
Mississippi had the highest uninsured motorist population in 2019 at 29.4%, followed by Michigan (25.5%), Tennessee (23.7%), New Mexico (21.8%), and Washington state (21.7%).
What States Require Auto Insurance? - InsuranceGuide360.com
What state doesn t require insurance?
New Hampshire and Virginia are the only states that do not require auto insurance. However, if you choose not to purchase car insurance in these states, you would still be held liable for any property damage or bodily injury caused by their vehicle. Do you live in an at-fault or not-at-fault state?
Why does Florida have so many uninsured drivers?
This might be because car insurance in Florida is among the most expensive in the country, up to an average monthly cost of $115 for minimum-liability coverage and $270 for full coverage. The national average for minimum coverage is $52 per month or $627 per year—much lower than Florida's annual average of $1,385.
What state can you drive without car insurance?
New Hampshire is the only state that doesn't mandate car insurance. However, drivers who choose not to buy car insurance must prove they have sufficient funds to meet the state's financial responsibility requirements (PDF) in the event they cause an accident.
Do I need to tell my car insurance if I move states?
Each state has its own laws and requirements for auto insurance, so you need to update your policy to comply with your new state's regulations. Additionally, factors like your new location, driving environment, and even the distance of your daily commute can influence your insurance rates.
Can I keep my car insurance if I move out of state?
When you move out of state, you'll need a new car insurance policy, even if you can stay with the same insurer. Your insurance company will cancel your old policy because every state has different coverage requirements and regulations.
Why are we forced to have car insurance?
By requiring car insurance in almost every state, U.S. car insurance laws help financially protect individuals in the event they cause or are involved in an accident. These laws attempt to ensure that every driver has insurance to cover a minimum level of costs for injuries and property damage they're responsible for.
Can someone drive my car if they are not on my insurance Progressive?
While there are exceptions, car insurance generally follows the car and not the driver. Allowing another licensed driver to borrow your vehicle is known as "permissive use," which means you give someone, who isn't listed on your car insurance policy, permission to operate your vehicle.
When did car insurance become mandatory by state?
SAN FRANCISCO — The California Supreme Court on Monday unanimously upheld the 1984 state mandatory auto insurance law requiring motorists stopped for traffic violations to prove they have liability coverage or eventually face losing their licenses.
What does 15/30/10 mean in insurance?
If your limits are 15/30/10, this means: No more than $15,000 would be paid per person for Bodily Injury. No more than $30,000 would be paid per accident for Bodily Injury. No more than $10,000 would be paid per accident for Property Damage.
Why don't you need car insurance in New Hampshire?
Unlike most states, New Hampshire doesn't mandate auto insurance for all drivers. Instead, it requires proof of financial responsibility, meaning you must show you can cover costs for bodily injury and property damage if you cause an accident. Understanding these laws is crucial.
Can my car be registered in one state and insured in another state?
Registering a vehicle in one state while holding an insurance policy in another is not permitted for most drivers. This restriction is due to variations in traffic laws and minimum insurance coverage requirements. Attempting to insure a vehicle in a state where you don't live might be insurance fraud.
What happens if I don't tell my car insurance that I moved?
Why Does It Matter If I Forget To Tell My Auto Insurance Company That I Moved? The short answer: Because they can refuse to cover you if you are in a car wreck and failed to change your address.
Can you cancel car insurance anytime?
Can you cancel car insurance at any time? Policyholders can cancel their auto insurance policy at any time, for any reason. And you never have to wait until the end of your policy period to cancel your policy. Even if your policy only started a few days ago, you may cancel it.
What states do not require insurance?
New Hampshire and Virginia are currently the only two states that don't require drivers to carry car insurance. Instead, they must carry proof of financial responsibility.
How long can you go without car insurance?
It is a crime to drive almost anywhere without car insurance coverage, even for a minute or just down the street. So, how long can you be without car insurance? If you're driving, you can't. Anytime you get behind the wheel as a licensed driver, you need insurance coverage or you'll risk incurring major consequences.
Why is insurance so bad in Florida?
Three primary factors are driving the insurance challenge. First, natural disasters are becoming more common and costly. Second, the price of reinsurance is skyrocketing. And finally, Florida's litigation-friendly environment compounds the issue by making it easy for customers to sue their insurers.
Can you sue an uninsured driver in Florida?
Suing an uninsured or underinsured motorist in Florida
In some circumstances, filing a lawsuit to recover damages from an auto accident is a viable option. If you suffer serious injuries and require extensive medical care, it may be worth the effort to sue in civil court.
What percentage of Americans drive without insurance?
As of 2022, the last time the Insurance Research Council collected national data, an estimated 14 percent of drivers in the U.S. lack car insurance. That means over 32 million licensed drivers do not have any financial liability protection when driving, an average of 658,241drivers per state. Washington, D.C.