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Are There States That Don’t Require Car Insurance?

States That Don’t Require Car Insurance

It’s not just a courtesy to pay for damages and injuries that you cause in a car accident, but a legal obligation. In fact, 49 out of 50 states require that all drivers carry at least a mandatory amount of car insurance. Failure to do so can result in penalties, including losing your license. So, unless you are a resident of New Hampshire, then you will have to carry car insurance.

What Are The General Car Insurance Laws States Have?

Only one type of car insurance is required in the majority of states –liability car insurance or sometimes referred to as basic car insurance. This insurance covers any damage and injuries that you cause in an accident. Any damage or injuries on your end in the same accident would be covered if you had full car insurance. Before we get into that, here’s the average liability insurance requirements:

  • Bodily injury per person - This is how much coverage you have for injuries of the other driver that you caused. This includes all aspects of medical transport and treatment. The average minimum coverage amount is $25,000.
  • Bodily injury per accident - This is how much coverage you have for injuries of everyone else in the other car that you caused. Again, medical treatment and expenses are included. The average minimum coverage amount is $50,000.
  • Property damage - This 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.

Keep in mind that minimum coverage amounts vary from state to state. They can be what you’ve just seen or even double it. Of course, just the minimum amount of coverage isn’t enough to fully cover you in a real life scenario. So, it is recommended that you carry well beyond the minimum coverage.

Why Isn’t Car Insurance Required in New Hampshire?

Car insurance legislation is a state government matter, so every state has their own requirements. It just so happens that New Hampshire has the fewest car insurance laws. There’s no law on their books stating that drivers must carry car insurance. Even so, driving without car insurance still poses big financial risks despite no legal ones. An at-fault car accident can be enough to bankrupt you. Then when you go looking for car insurance, you’ll have to pay much higher premiums. It’s best to think twice about it before hitting the road.

Are There Other Specific State Car Insurance Laws?

Aside from New Hampshire, Virginia is another special case of car insurance. Here, drivers have two options. They can get at least the minimum required liability insurance or pay a $500 fee when they register their car without insurance. Still, they could be on the line for any outstanding liability claims. In conclusion, it never hurts to look up car insurance rates in your area. Even if you aren’t legally required to, car insurance can help you fend off financial disaster.

Collisions can be expensive, so you need to make sure you have good auto insurance before hitting the road. Insurance Navy can help. Get your quote online today or give us a call at 888-949-6289. Our expert agents will help you get high-quality car insurance coverage at budget-friendly prices.

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