New Hampshire is the only state that doesn't require car insurance. However, drivers who choose not to take out car insurance must demonstrate that they have sufficient funds to meet the state's financial responsibility requirements (PDF) in the event that they cause an accident. No, not all states require car insurance, but all require financial responsibility to operate a vehicle on the road. In the two states where auto insurance isn't required, you must get approval to waive the requirements or pay a fee.
Both Virginia and New Hampshire are guilty states, which means that the person causing the accident must prove financial responsibility up to a certain amount for the costs of injuries and damage to the other driver's property. While most states require some form of auto insurance coverage, not all 50 states do. New Hampshire and Virginia stand out because they don't require car insurance for all motorists, but for drivers who don't have the means to hand out large amounts of money in the event of an accident, this might not be a good thing. Nearly every state has a minimum requirement for car insurance.
Some states require personal injury protection (PIP), which covers the costs you or your passengers incur if you are injured in an accident. While you must meet the minimum insurance requirements to legally operate your vehicle, it's generally a good idea to buy more than the minimum amount of coverage required. If you can't afford car insurance, you can get coverage through the New Hampshire Car Insurance Plan. State laws and minimum insurance requirements vary widely, and that has a huge effect on what you pay.
This won't protect you financially, and if you cause a car accident, you are financially responsible for all bodily injuries and property damage you cause. Car insurance minimums are meant to be a starting point for coverage, but they may not cover the full cost of an accident and minimums alone may not cover damage to your vehicle. Collision coverage covers damage to your car after an accident, no matter who caused it, and comprehensive coverage covers the type of damage that can happen to your car when you don't drive it. Here's everything you need to know about what New Hampshire and Virginia require of drivers, plus why you should consider buying coverage if you live there.
Usually, you'll be required to purchase property damage liability insurance to repair the vehicles of anyone you run over. While auto insurance is not required in either state, residents are still responsible for any bodily injury or property damage they cause. For example, you may be denied if you have a history of drunk driving, have caused accidents without car insurance in the past three years, or have certain traffic-related convictions. This fee does not act as car insurance, it simply exempts you from your requirements to purchase the minimum requirements of a provider.
All other states have some type of auto insurance requirements, usually liability or personal injury protection, depending on the relevant state laws. Each state has a different minimum amount of car insurance that drivers must obtain to legally drive on public roads. In fact, 49 states and the District of Columbia require the driver of a vehicle to demonstrate some form of financial responsibility, usually in the form of liability insurance.
