Every state requires car insurance in 2025 except for New Hampshire. Even there, you must prove that you can pay for the medical or property damages through its financial responsibility law.

According to the Insurance Research Council, 14% of drivers nationwide are uninsured despite the threat of penalties ranging from fines to license suspension. This guide explains the state requirements for car insurance and what can happen if you’re caught driving without valid coverage.

CarInsurance.com Insights

  • Every state but New Hampshire requires drivers to carry car insurance.
  • New Hampshire residents must provide proof of financial responsibility, which often takes the form of car insurance.
  • If you’re caught driving without having your state’s minimum liability insurance, you could lose your license and be required to pay a fine, though the penalties vary by state.

Do all states require car insurance?

Every state requires that you meet financial responsibility requirements that show you can pay if you cause damages to another person or property in an automobile accident. This is typically through insurance, a bond, or some other approved means.

In nearly all states, that means carrying sufficient car insurance to protect your liability in the event of an accident. There is only one exception: New Hampshire, which doesn’t require its drivers to carry insurance to meet the financial responsibility requirement. 

What is the insurance requirement across different states?

Almost every state requires you to have bodily injury liability insurance to pay for the treatment of anyone you injure; other states operating under no-fault laws will require that you carry personal injury protection to pay for your injuries, regardless of who is at fault. You usually will be required to buy property damage liability insurance to repair the vehicles of anyone you hit.

Some states require other coverages as well, such as:

How liability minimums vary by state

States vary by the type of insurance they require and the minimum coverage limits. Most require bodily injury and property damage liability, often shortened to BI and PD. 

Minimum coverage is usually written out as a series of three numbers separated by slashes, representing bodily injury liability limit per person, bodily injury liability per accident and property damage liability in thousands of dollars. For example, a minimum liability limit of 25/50/25 means $25,000 in bodily injury liability per person and $50,000 per accident, plus property damage liability of $25,000.

The table below shows the minimum liability requirements for each state.

StateInsurance requiredMinimum liability limits
AlabamaBI & PD Liability25/50/25
AlaskaBI & PD Liability50/100/25
ArizonaBI & PD Liability25/50/15
ArkansasBI & PD Liability25/50/25
CaliforniaBI & PD Liability30/60/15
ColoradoBI & PD Liability25/50/15
ConnecticutBI & PD Liability, UM, UIM25/50/25
DelawareBI & PD Liability, PIP25/50/10
District of ColumbiaBI & PD Liability, UM25/50/10
FloridaPD Liability, PIP0/0/10 
GeorgiaBI & PD Liability25/50/25
HawaiiBI & PD Liability, PIP20/40/10
IdahoBI & PD Liability25/50/15
IllinoisBI & PD Liability, UM, UIM25/50/20
IndianaBI & PD Liability25/50/25
IowaBI & PD Liability20/40/15
KansasBI & PD Liability, PIP25/50/25
KentuckyBI & PD Liability, PIP25/50/25 
LouisianaBI & PD Liability15/30/25
MaineBI & PD Liability, UM, UIM, Medpay50/100/25 
MarylandBI & PD Liability, PIP, UM, UIM30/60/15
MassachusettsBI & PD Liability, PIP25/50/30
MichiganBI & PD Liability, PIP50/100/10
MinnesotaBI & PD Liability, PIP, UM, UIM30/60/10
MississippiBI & PD Liability25/50/25
MissouriBI & PD Liability, UM25/50/25
MontanaBI & PD Liability25/50/20
NebraskaBI & PD Liability, UM, UIM25/50/25
NevadaBI & PD Liability25/50/20
New HampshireFinancial responsibility only25/50/25 for those who choose to have it
New JerseyBI & PD Liability, PIP, UM, UIM25/50/25
New MexicoBI & PD Liability25/50/10
New YorkBI & PD Liability, PIP, UM, UIM25/50/10 
North CarolinaBI & PD Liability, UM, UIM50/100/50
North DakotaBI & PD Liability, PIP, UM, UIM25/50/25
OhioBI & PD Liability25/50/25
OklahomaBI & PD Liability25/50/25
OregonBI & PD Liability, PIP, UM, UIM25/50/20
PennsylvaniaBI & PD Liability, PIP15/30/5
Rhode IslandBI & PD Liability25/50/25
South CarolinaBI & PD Liability, UM, UIM25/50/25
South DakotaBI & PD Liability, UM, UIM25/50/25
TennesseeBI & PD Liability25/50/25
TexasBI & PD Liability30/60/25
UtahBI & PD Liability, PIP30/60/25
VermontBI & PD Liability, UM, UIM25/50/10
VirginiaBI & PD Liability, UM, UIM50/100/25
WashingtonBI & PD Liability25/50/10
West VirginiaBI & PD Liability, UM, UIM25/50/25
WisconsinBI & PD Liability, UM, Medpay25/50/10
WyomingBI & PD Liability25/50/20

Source: Insurance Information Institute

Federal vs. state insurance laws explained simply

States are in charge of setting the insurance laws for their residents, not the federal government. That’s why insurance laws can vary widely, even among neighboring states. The McCarran-Ferguson Act of 1945 affirms the authority of the states to determine their own car insurance regulations.

Which states don’t require car insurance?

Only one state does not require car insurance: New Hampshire. However, that doesn’t mean drivers in that state are free to drive without proof of financial responsibility.

New Hampshire: Why insurance isn’t required

New Hampshire is one of the only states that does not require auto insurance. However, drivers in the Granite State still must demonstrate that they have the financial resources to cover damages if they’re involved in an accident. Car insurance is one way to do that; depositing funds with the state is another.

Virginia: Opt-out fee eliminated in 2024

Until last year, Virginia drivers could pay a $500 uninsured motor vehicle fee that let them drive an uninsured vehicle. However, the legislature eliminated that option effective July 1, 2024. Virginia drivers must now carry insurance with 50/100/25 minimum liability limits.

Are there other legal workarounds?

Workarounds might be the wrong word for it, but there are instances where you may not need car insurance if you can otherwise prove you have the financial assets to cover your liability. That said, car insurance is the most common way of demonstrating your financial responsibility.

Alternatives to mandatory insurance

Sometimes, you can drive without car insurance if the state has proof that you have the funds. This can be especially helpful if you can’t purchase insurance.

Surety bonds, deposits and self-insurance

The most common alternative to mandatory insurance involves submitting either documentation of your assets or the assets themselves to the state. 

Surety bonds: In some states, you can purchase a cash or surety bond to be posted with your state’s treasurer. Not everyone is eligible to use a surety bond. In Virginia, for example, they’re only for business vehicles.

Deposits: You may be able to deposit funds with your state treasurer to prove you can financially compensate for losses after an accident. 

Self-insurance: If you’re self-insured, you’ve set aside a sufficient amount of money to cover your liability without insurance.

How alternatives work in practice

While these tactics may seem like legal workarounds to driving without insurance, they’re uncommon and unavailable in some states. Plus, states that do allow these alternatives may be especially stringent about the amounts you’re required to deposit, set aside or buy a bond for.

Who qualifies for non-traditional coverage options?

It depends on the state. For example, only a handful of states allow self-insurance, and some require a fleet of 25 vehicles or more to be eligible.

What happens if you drive uninsured?

Driving uninsured is illegal almost everywhere. If caught, you could lose your license and registration and be forced to pay stiff penalties, although the consequences vary by state.

Legal and financial penalties by state

In most states, you’ll lose your license and owe the state several hundred dollars if you drive uninsured. Below are the penalties and fines for driving without insurance. 

State Fine amount Jail time Registration suspension License suspension Confiscate plates Impound car Points SR-22
Alabama$500 to $1,000_YesYes  _  _  __
Alaska$500 to $1,00090 days to 1 year  _Yes  _  _  _Yes, if in accident
Arizona$500 for first violation  _YesYes  _  _  __
Arkansas$50 to $250 for first offenseUp to a year for third offenseYes  _Yes  _  __
California$100 to $200   _YesYes  _Yes  __
Colorado$500 minimumCommunity Service_Yes__Four points_
Connecticut$100 to $1,00090 daysYesYesYesYes__
Delaware$1,500 to $3,000 _YesYesYes___
D.C.Up to $500 fine90 daysYesYesYes___
Florida$500 reinstatement fees_YesYesYes__Yes
Georgia$200 to $1,0001 yearYesYes___Yes
Hawaii$500Yes (not more than 30 days)YesYes (after multiple offense)YesYes_Yes
Idaho$75 to $1,000Yes (not more than 6 months)YesYes___Yes
IllinoisMinimum $500_YesYes__Yes
IndianaUp to $1,000__Yes___Yes
Iowa
$250 mandatory fine or community service
_Yes_YesYes__
Kansas$300 to $1,0006 monthsYesYes____
Kentucky$500 to $1,00090 daysYesYes____
Louisiana$500 to $1,000YesYes (if you cause an accident)YesYes__
Maine$100 to $500_YesYes___Yes
Maryland$150 to $2,500Yes_Yes__
Massachusetts$5001 yearYesYes___ 
Michigan$5001 year_Yes____
Minnesota$200 to $1,00090 daysYesYesYes__
Mississippi$1,000__Yes____
Missouri$50015 daysYesYes___
Montana$250 to $50010 days_Yes__5 Points_
Nebraska$50 reinstatement feesYesYes__
Nevada$250 to $1,000YesYesYesYes_Yes
New HampshireInsurance not normally required____Yes 
New Jersey$300 to $1,000Community Service_Yes___
New MexicoUp to $300_Yes_Yes___
New YorkUp to $1,500 plus a $750 reinstatement feeYesYes YesYes__
North Carolina$50 to $150_YesYesYes__
North Dakota$150 minimum_YesYesYes__Yes
Ohio$100 to $600_YesYesYes__Yes
OklahomaUp to $25030 days in some casesYesYesYes__
Oregon$130 to $1,000_YesYes_Yes_Yes
Pennsylvania$300_YesYes___
Rhode Island$100 to $500_YesYesYes_
South Carolina$600 uninsured motorist fee_YesYesYes__Yes
South Dakota$10030 daysYesYesYes__Yes
Tennessee$300_YesYes____
Texas$260 to $470_YesYes___Yes
Utah$400_YesYes____
VermontUp to $500__Yes__Two points_
Virginia$200_YesYesYes__Yes (if you haven’t paid the uninsured motor vehicle fee)
Washington$550__Yes____
West Virginia$200  YesYes____
WisconsinUp to $500_Yes Yes ___Yes
Wyoming$250 to $750YesYes___Yes

Is it illegal not to have car insurance?

Essentially, yes. You must have car insurance in every state but New Hampshire; even there, you must prove financial responsibility. Driving without insurance carries fines, penalties and the risk of losing your license or registration or having your car impounded.

Real-life example of uninsured drivers’ consequences

Take New Mexico, for example. According to data from the Insurance Information Institute (Triple-I), nearly 25% of drivers in that state are uninsured. The state requires bodily injury and property damage liability coverage of at least 25/50/10: $25,000 per person, $50,000 per accident for bodily injury, and $10,000 for property damage.

A New Mexico driver caught without this state’s minimum coverage would face a $300 fine, lose their registration, and be forced to turn in their license plates. Plus, they’d still be liable for all injuries and damages resulting from a car accident. 

FAQ: Do all states need insurance?

Do you have to have car insurance in all 50 states?

You must have car insurance in 49 states (excluding New Hampshire) and the District of Columbia.

Which states don’t require car insurance coverage?

You don’t have to have car insurance in New Hampshire if you can prove financial responsibility.

Which state has the lowest minimum coverage requirement?

Florida has very low minimum coverage requirements: $10,000 in personal injury protection and $10,000 in property damage liability. Pennsylvania also has some of the lowest state minimum car insurance requirements at 15/30/5: $15,000 in bodily injury liability coverage per person, $50,000 per accident, and $5,000 in property damage liability. 

What happens if I don’t have car insurance?

The consequences for driving without insurance vary by state. You’ll likely have to pay a fine, usually a few hundred dollars, and you may lose your license, registration or plates. Some states even impound your car. 

Resources & Methodology

Sources

  1. Florida Highway Safety and Motor Vehicles. “Florida Insurance Requirements.” Accessed July 2025.
  2. Insurance Information Institute. “Automobile Financial Responsibility Laws By State.” Accessed July 2025. 
  3. Insurance Information Institute. “Commercial Insurance.” Accessed July 2025.
  4. New Mexico Motor Vehicle Department. “Insurance.” Accessed July 2025.
  5. Ohio Department of Insurance. “Financial Responsibility Bonds to Comply with Ohio Law.” Accessed July 2025.
  6. Virginia General Assembly. “2023 Session.” Accessed July 2025.

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author-img Mary Beth Eastman Contributing Researcher
Mary Beth Eastman is an authority on personal finance topics including home, auto, and life insurance as well as mortgages, loans, and credit. Her work appears in major national brands and publishers, including U.S. News and World Report, Newsweek, The Wall Street Journal, Homes.com, Angi, and others. She also serves on the board of the Falcon Media Alumni at Bowling Green State University.
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Laura Longero is an insurance expert with more than 15 years of experience educating people about personal finance topics and helping consumers navigate the complexities of auto insurance. She writes and edits for QuinStreet’s CarInsurance.com, Insurance.com and Insure.com. Prior to joining QuinStreet, she worked as a reporter and editor at the USA Today Network. Laura completed the pre-licensing course in Personal Lines Property & Casualty Insurance in Nevada.