If you live in the United States and want to legally drive a car, you’re likely required to have auto insurance. But the type and limits of auto insurance you need to have may vary based on the state you reside in. Here’s all you need to know.
Are There Any States in The U.S. that Don’t Require Auto Insurance?
At present, there are only two states – New Hampshire and Virginia – that have not made car insurance mandatory for all drivers. In Virginia, uninsured motor vehicle fees need to be paid to the state, and car owners in New Hampshire can choose to post cash bonds. All the other states have some type of auto insurance requirements, such as personal injury protection or liability insurance.
Minimum Requirements in Other States
The minimum requirements for car insurance vary widely between states. In some cases, states have different laws for liability and collision coverage. For example, some states require liability coverage but don’t require collision or comprehensive coverage. Other states may require full coverage for both liability and comprehensive and collision coverage.
Is It Illegal for People Residing in The U.S. to Drive without Auto Insurance?
Car insurance is a must in almost every state in the country. The laws, of course, may vary from state to state, but there are some basic requirements that you need to meet. If you live in a state that requires car insurance, then you will have to buy a plan if you want to drive your vehicle on the roads. People who are caught driving without a valid car insurance plan may have to face serious consequences. A few common penalties include suspension of one’s registration or license, fines, vehicle getting impounded, jail time, etc.
Why You Should Get Auto Insurance
It is a fact that some states do not require drivers to purchase car insurance. In these states, drivers can choose to either get the required minimum amount of coverage or none at all. The lack of mandatory insurance makes it seem like states where car insurance is not mandatory to save drivers money.
But that’s not the truth. The biggest benefit of having car insurance is that it protects you financially if you have an accident. If you, unfortunately, do not have enough money saved up in savings accounts or investments, an accident could be devastating for your finances. Even if you weren’t at fault, the costs could add up quickly when you are dealing with a mountain of medical bills and vehicle repairs. Without any coverage, you will be responsible for paying these costs out of pocket — which can take years and years to pay off.
