It’s not just a courtesy to pay for damages and medical expenses for injuries you cause in a car accident, but a legal obligation. 49 out of 50 states require that all drivers carry at least the mandatory minimum amount of car insurance.
Failure to carry sufficient insurance can result in penalties, including losing your license. So, unless you are a resident of New Hampshire, you will have to meet the minimum auto insurance requirements.
States With No Auto Insurance Requirement
New Hampshire is the only state that does not require car insurance. Driving without insurance is legal in New Hampshire, but drivers must follow certain state minimum liability requirements.
New Hampshire Insurance Requirements
New Hampshire does not require auto insurance. However, drivers can meet the state’s Motor Vehicle Financial Responsibility Requirements by showing a financial responsibility of $100,000 per vehicle.
However, you are still financially responsible for any damages you cause in an accident, with a minimum liability of $50,000 for bodily injury liability per person/accident and $25,000 for property damage liability per accident. Your driver’s license and vehicle registration will be suspended if you can’t cover these costs.
To prove financial responsibility, you can submit a receipt from the state treasurer showing a deposit of the required amount in cash or legally acquired securities into a bank account. The receipt must then be sent to the New Hampshire Department of Safety. Securities must be lawfully purchased by a savings bank or designated for a trust fund.
New Hampshire requires minimum coverage amounts if you choose to or are required to carry auto insurance. That’s $25,000 bodily injury per person, $50,000 per accident, and $25,000 property damage per accident.
You must also have at least $1,000 in medical payments coverage and uninsured motorist coverage that matches your liability policy limits.
Who has to carry Auto Insurance in New Hampshire?
If you can’t afford to meet the Financial Responsibility Requirements, you must get a standard auto insurance policy. Those who finance or lease a vehicle usually need insurance that includes collision and comprehensive coverage.
Auto insurance is mandatory for those with an SR-22 filing, which is for drivers convicted of driving while intoxicated (DWI), leaving the scene of an accident, being responsible for a major at-fault accident, or committing a second offense of Reckless Driving.
The Bond Alternative to Insurance Coverage
Some states offer an alternative to traditional car insurance through proof of financial responsibility, typically a surety bond, liability bond, or a cash deposit in a designated amount.
You buy a bond that provides financial protection in case of an at-fault accident. If an at-fault accident occurs, the bond covers up to the limit, but you have to repay the full amount plus interest.
Unlike car insurance, a bond is tied to the driver, not a specific vehicle, so you can legally drive any car.
While this might seem appealing, it comes with substantial financial risks. Even minor accidents can cost thousands of dollars, including vehicle repairs, medical bills, and legal fees, all of which you are personally responsible for.
States with the Lowest Auto Insurance Requirements
New Hampshire is the only state that doesn’t require auto insurance, and Florida is the only state that doesn’t require bodily injury coverage, which pays for injuries to others in an accident caused by the policyholder. Louisiana has the lowest minimum liability limits of all the states.
Both Florida and Louisiana have some of the highest auto insurance premiums in the country, and this is due to the legal headaches caused by low coverage limits.
When a policyholder’s insurance company doesn’t cover the full extent of damages and injuries, lawsuits are filed to recover additional costs, which add to the overall premium. Other factors, like Florida’s no-fault state insurance laws and frequent natural disasters, also drive up insurance costs in these states.
Florida’s Minimum Coverage Requirements
Florida requires $10,000 in property damage liability per accident and $10,000 in personal injury protection (PIP) per person and accident.
Louisiana’s Minimum Coverage Requirements
Most states require a total liability coverage of $100,000, typically $25,000 in bodily injury liability coverage per person, $50,000 per accident, and $25,000 in property damage coverage.
Louisiana’s requirements are much lower at $70,000. They require $15,000 in bodily injury liability per person, $30,000 per accident, and $25,000 in property damage liability per accident.
Proof of Financial Responsibility for Uninsured Drivers
If you choose not to carry auto insurance, you must still have proof of financial responsibility, just like insured drivers must present insurance cards.
Instead, you must carry documentation verifying your bond or other financial responsibility and present it when pulled over or in an at-fault accident.
Not providing proof of financial responsibility can result in severe consequences, including registration and license suspension, plus an uninsured motorist fee.
To reinstate your driving privilege, you may be required to get auto insurance or an alternative form of financial responsibility requirement.
In some states, repeat offenders must carry traditional insurance for a mandatory period, such as 3 years.
What are the Average Minimum Insurance Limits that Most States Require?
Only one type of car insurance is required in most states – liability car insurance, which is sometimes referred to as basic car insurance, basic coverage, or mandatory car insurance.
This liability insurance covers any damage and injuries you cause in an accident. Any damage or injuries in the same accident would be covered if you had full car insurance or comprehensive coverage.
Bodily Injury Liability
Bodily injury liability insurance per person is how much liability coverage you have for injuries caused by the other driver you caused. This includes all aspects of medical transport and treatment. The average minimum requirement for this coverage is $25,000.
Bodily injury per accident is how much coverage you have for everyone else’s injuries in the other car you caused. Again, medical treatment and expenses are included. The average minimum requirement for this coverage is $50,000.
Property Damage Liability
Property damage liability insurance is how much coverage you have for the damage you caused to another car and other property in the accident. Repair and replacement costs are covered. The average minimum coverage amount is $10,000.
Uninsured/Underinsured Motorist Coverage
Suppose you are hit by a driver who is at fault but not insured or underinsured and can’t pay for your medical bills or vehicle repairs. In that case, uninsured/underinsured motorist coverage will cover the gap.
This coverage is divided into liability coverage, which covers bodily injury to uninsured/underinsured motorists, and property damage coverage for uninsured/underinsured motorists. It will pay for medical bills for you and your passengers and vehicle repairs after an accident.
Some states require uninsured motorist coverage for bodily injury liability, so you are financially protected if an at-fault driver doesn’t have sufficient insurance coverage. These states are:
- Connecticut
- Illinois
- Kansas
- Maine
- Maryland
- Massachusetts
- Minnesota
- Missouri
- Nebraska
- New Hampshire
- New York
- North Carolina
- North Dakota
- Oregon
- South Carolina
- Vermont
- Virginia
- West Virginia
- Wisconsin
Some states require uninsured motorist coverage for property damage liability, which will pay for vehicle repairs in an accident with an uninsured driver. These states are:
- Maryland
- New Hampshire (if you have auto insurance)
- North Carolina
- South Carolina
- Vermont
- Virginia
- West Virginia
- Washington, D.C.
Remember that legally, minimum coverage amounts to driving on public roads vary from state to state. It is recommended that you carry auto insurance coverage well beyond the minimum insurance requirements.
Each state has a different minimum standard for liability insurance, and some mandate the purchase of additional insurance, including uninsured motorist coverage, underinsured motorist coverage, or personal injury protection.
The most common types of auto insurance that states do not require are collision coverage and comprehensive coverage.
If you finance a car, your lender will likely require you to buy higher coverage limits from your auto insurance company than the law mandates.
The only state that mandates medical payments coverage is Maine.
Insurance Navy can help you find the most affordable auto insurance rates.
Get free car insurance quotes online today or call us at 888-949-6289. Our expert insurance agents will help you get high-quality car insurance coverage at low prices.
Frequently Asked Questions
Do you need insurance in all 50 states?
Car insurance is required in all U.S. states except New Hampshire. In New Hampshire, you still must prove financial responsibility to the state to not carry auto insurance coverage.
What state has the strictest auto insurance laws?
The Top 10 States for the strictest auto insurance laws are:
- Arizona
- Florida
- Illinois
- Indiana
- Kentucky
- Nevada
- South Dakota
- Virginia
What state has the most drivers without insurance?
In 2022, According to the Insurance Information Institute, Washington D.C. has 25.2% Uninsured drivers, followed by New Mexico with 24.9% Uninsured drivers.
