Do All States Require Car Insurance?

Driving privileges come with their share of responsibilities, and being able to reimburse other drivers for their losses if you cause an accident is one of them. The most common way of proving financial responsibility in the United States is auto insurance. However, there are three states that don’t (yet) ask drivers to sign up for a policy with an insurance company.

New Hampshire

New Hampshire is the only state that doesn’t ask for any proof of financial responsibility. If you cause an accident and don’t have Liability coverage, your driver’s license will be suspended or revoked if you cannot cover the damages of the other parties.

You will also be required to get an insurance policy in any of the following scenarios:

• you were found at-fault in a traffic accident;
• you have been caught driving under the influence of alcohol, regardless of the BAC (a concentration of over 0.8% will result in harsher penalties and a SR22 requirement for at least three years);
• you have committed a serious traffic violation that requires a judge to review your driving record.

California

California is a bit loose on its policies. Even though an insurance policy isn’t required per se, drivers have to provide proof of financial responsibility. The state has ruled that all drivers must be able to cover a minimum of $30,000 in personal injuries to parties affected in a car accident, as well as $5,000 in property damage (a 15/30/5 ratio). Drivers are, however, allowed to choose between acquiring an insurance policy and placing a deposit of $35,000 with the Californian DMV.

Wisconsin

Much like California, Wisconsin allows its residents to either buy Liability coverage or place a deposit of $60,000 (or file a bond of the same value) with the local Department of Transportation.