New Hampshire is the only state that doesn't require car insurance. Every other state and Washington, D.C. require drivers to carry at least a minimum amount of liability insurance or another approved form of financial responsibility. Virginia used to be the second exception, but it ended its pay-a-fee option on July 1, 2024. Even in New Hampshire, skipping insurance doesn't mean skipping responsibility: if you cause a crash, you still have to pay for the damage.
This guide explains what New Hampshire requires instead of insurance, what changed in Virginia, which states let you use a bond or cash deposit in place of a policy, and what happens if you drive without coverage. To check the exact rules where you live, see our car insurance requirements by state.
Is car insurance required in all states?
Almost. According to the Insurance Information Institute, every state except New Hampshire, along with Washington, D.C., requires some form of auto insurance. The minimum amounts vary from state to state, and most states require liability coverage, which pays for injuries and damage you cause to other people.
| Situation | Where it applies | What it means |
|---|---|---|
| Insurance required | 49 states and Washington, D.C. | You must carry at least the state's minimum liability coverage, or an approved alternative |
| Insurance not required | New Hampshire | You must be able to pay for damage you cause, and you can be required to buy insurance after certain offenses |
| Pay-a-fee option ended | Virginia (since July 1, 2024) | Every registered vehicle now needs an insurance policy |
So if you are asking whether you can legally drive without insurance, the honest answer for almost everyone in the US is no.
New Hampshire: no insurance requirement, but you are still responsible
New Hampshire is often described as the state with no car insurance law, but that is only half the picture. The state relies on financial responsibility: you don't have to buy a policy, but you must be able to pay for the damage and injuries you cause.
What New Hampshire requires instead
If you cause a crash in New Hampshire, you must be able to pay at least the amounts the state uses as its financial responsibility standard: $25,000 per person and $50,000 per accident for injuries, and $25,000 for property damage. Drivers who cause an accident and can't pay can lose their license and registration. In practice, that is why most New Hampshire drivers buy a policy anyway.
If you buy a policy in New Hampshire
If you do buy car insurance in New Hampshire, the policy must meet state rules. It must include at least $1,000 of medical payments coverage and uninsured motorist coverage equal to your liability limits. Our New Hampshire car insurance guide has the details and the official source.
When New Hampshire can require insurance
The choice to go without insurance isn't permanent. New Hampshire can require drivers to carry insurance and file proof of it, often called an SR-22, after certain offenses, such as some serious driving violations or an accident they couldn't pay for. If you live in New Hampshire, check with the state's Division of Motor Vehicles before deciding to go without a policy.
What happened to Virginia's uninsured motor vehicle fee?
Until mid-2024, Virginia drivers could pay an uninsured motor vehicle fee to the state instead of buying insurance. The fee did not provide any coverage; it simply allowed the car to be registered without a policy.
That option is gone. As the Virginia DMV announced, effective July 1, 2024, the option to pay a fee rather than maintain insurance was eliminated, and all vehicles registered in Virginia must have an insurance policy that meets Virginia's liability limits.
Virginia also raised those limits on January 1, 2025, so drivers who switched from the fee need a policy that meets the current minimums. See our Virginia car insurance guide for today's numbers.
States that allow alternatives to an insurance policy
Most states require insurance, but many of them technically accept other forms of financial responsibility, such as a surety bond, a cash deposit with the state, or, for large fleets, self-insurance. These options exist mainly for businesses and people with substantial assets. For an individual driver, they usually tie up far more money than an insurance policy costs.
Two of the largest states show how this works:
| State | Alternatives to an insurance policy | Source |
|---|---|---|
| California | A $75,000 cash deposit with the DMV, a $75,000 surety bond, or a DMV-issued self-insurance certificate | California DMV |
| Texas | A $55,000 deposit of cash or securities with the state comptroller, or a surety bond backed by two owners of Texas real estate | Texas Transportation Code 601.121–601.122 |
Many other states have similar rules, but the amounts and the process differ. If you are considering a bond or deposit, contact your state's DMV or insurance department first, and remember that a deposit only satisfies the law: unlike insurance, it doesn't defend you in a lawsuit or pay anything above the deposited amount.
Bonds and deposits involve paperwork with the state and tie up a large sum of money. Photo: Maximilianovich on Pixabay.
Why is car insurance required?
States require car insurance so that people injured in a crash can be paid, even when the driver who caused it doesn't have the money. Without a requirement, many victims would be left with medical bills and car repairs they never caused. Minimum liability limits set a floor for that protection.
The state minimum only protects other people, though. It doesn't pay to repair your own car or treat your own injuries. That takes optional coverage, such as collision and comprehensive, which lenders usually require if your car is financed. We explain which coverage pays for what in does car insurance cover repairs?
What happens if you drive without insurance?
Penalties depend on the state, but driving without required coverage commonly leads to fines, suspension of your license or registration, and having to file proof of insurance, such as an SR-22, before you can drive again. Repeat offenses usually bring heavier penalties.
The bigger risk is financial. If you cause a crash without insurance, you are personally responsible for the other driver's injuries and repairs, which can easily reach tens of thousands of dollars. Each of our state guides lists that state's minimum coverage and links to its official source, starting from our car insurance requirements by state.
How to check what your state requires
- Open your state's guide from our state-by-state list to see the minimum liability limits and any required extras, such as personal injury protection or uninsured motorist coverage.
- Check the official source linked on that page if you need the exact legal wording.
- Decide how much protection you want. The minimum is a legal floor, and many drivers choose higher limits to protect their savings.
- Compare quotes from several insurance companies, because prices for the same coverage can vary widely.
When you are ready, you can request car insurance quotes. Our team will go over your options and connect you with insurance companies that cover your area.
Frequently asked questions
Is car insurance required in every state?
Every state except New Hampshire requires car insurance or another approved form of financial responsibility, and so does Washington, D.C. In New Hampshire, drivers who skip insurance must still be able to pay for damage they cause.
Can I drive without insurance in New Hampshire?
Yes, New Hampshire doesn't require car insurance for most drivers. But you must be able to pay for any damage or injuries you cause, at least $25,000 per person, $50,000 per accident and $25,000 for property, or you can lose your license and registration. The state can also require insurance after certain offenses.
Does Virginia still let you pay a fee instead of buying insurance?
No. Virginia eliminated its uninsured motor vehicle fee on July 1, 2024. Every vehicle registered in Virginia now needs an insurance policy that meets the state's liability limits.
Can I use a bond instead of car insurance?
In some states, yes. California, for example, accepts a $75,000 surety bond or cash deposit, and Texas accepts a $55,000 deposit with the state comptroller or a qualifying surety bond. These options require a large amount of money and don't provide the legal defense and coverage an insurance policy does.
Do I need insurance if I don't drive my car?
Often, yes. In many states a registered vehicle must stay insured even when it isn't being driven, and dropping coverage can lead to penalties or a suspended registration. Some states let you surrender your plates or file for storage status instead, so check with your state's DMV before canceling a policy.
This guide gives general information about US car insurance requirements as of October 2026. Laws change, so confirm current rules with your state's DMV or insurance department. Cover photo: RJA1988 on Pixabay.
