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:
- Uninsured motorist coverage (UI/UM), which pays out if you’re hit by an uninsured or underinsured driver
- Medical payments coverage (MedPay), which covers medical expenses for injuries sustained in an accident
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.
| State | Insurance required | Minimum liability limits |
|---|---|---|
| Alabama | BI & PD Liability | 25/50/25 |
| Alaska | BI & PD Liability | 50/100/25 |
| Arizona | BI & PD Liability | 25/50/15 |
| Arkansas | BI & PD Liability | 25/50/25 |
| California | BI & PD Liability | 30/60/15 |
| Colorado | BI & PD Liability | 25/50/15 |
| Connecticut | BI & PD Liability, UM, UIM | 25/50/25 |
| Delaware | BI & PD Liability, PIP | 25/50/10 |
| District of Columbia | BI & PD Liability, UM | 25/50/10 |
| Florida | PD Liability, PIP | 0/0/10 |
| Georgia | BI & PD Liability | 25/50/25 |
| Hawaii | BI & PD Liability, PIP | 20/40/10 |
| Idaho | BI & PD Liability | 25/50/15 |
| Illinois | BI & PD Liability, UM, UIM | 25/50/20 |
| Indiana | BI & PD Liability | 25/50/25 |
| Iowa | BI & PD Liability | 20/40/15 |
| Kansas | BI & PD Liability, PIP | 25/50/25 |
| Kentucky | BI & PD Liability, PIP | 25/50/25 |
| Louisiana | BI & PD Liability | 15/30/25 |
| Maine | BI & PD Liability, UM, UIM, Medpay | 50/100/25 |
| Maryland | BI & PD Liability, PIP, UM, UIM | 30/60/15 |
| Massachusetts | BI & PD Liability, PIP | 25/50/30 |
| Michigan | BI & PD Liability, PIP | 50/100/10 |
| Minnesota | BI & PD Liability, PIP, UM, UIM | 30/60/10 |
| Mississippi | BI & PD Liability | 25/50/25 |
| Missouri | BI & PD Liability, UM | 25/50/25 |
| Montana | BI & PD Liability | 25/50/20 |
| Nebraska | BI & PD Liability, UM, UIM | 25/50/25 |
| Nevada | BI & PD Liability | 25/50/20 |
| New Hampshire | Financial responsibility only | 25/50/25 for those who choose to have it |
| New Jersey | BI & PD Liability, PIP, UM, UIM | 25/50/25 |
| New Mexico | BI & PD Liability | 25/50/10 |
| New York | BI & PD Liability, PIP, UM, UIM | 25/50/10 |
| North Carolina | BI & PD Liability, UM, UIM | 50/100/50 |
| North Dakota | BI & PD Liability, PIP, UM, UIM | 25/50/25 |
| Ohio | BI & PD Liability | 25/50/25 |
| Oklahoma | BI & PD Liability | 25/50/25 |
| Oregon | BI & PD Liability, PIP, UM, UIM | 25/50/20 |
| Pennsylvania | BI & PD Liability, PIP | 15/30/5 |
| Rhode Island | BI & PD Liability | 25/50/25 |
| South Carolina | BI & PD Liability, UM, UIM | 25/50/25 |
| South Dakota | BI & PD Liability, UM, UIM | 25/50/25 |
| Tennessee | BI & PD Liability | 25/50/25 |
| Texas | BI & PD Liability | 30/60/25 |
| Utah | BI & PD Liability, PIP | 30/60/25 |
| Vermont | BI & PD Liability, UM, UIM | 25/50/10 |
| Virginia | BI & PD Liability, UM, UIM | 50/100/25 |
| Washington | BI & PD Liability | 25/50/10 |
| West Virginia | BI & PD Liability, UM, UIM | 25/50/25 |
| Wisconsin | BI & PD Liability, UM, Medpay | 25/50/10 |
| Wyoming | BI & PD Liability | 25/50/20 |
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 | _ | Yes | Yes | _ | _ | _ | _ |
| Alaska | $500 to $1,000 | 90 days to 1 year | _ | Yes | _ | _ | _ | Yes, if in accident |
| Arizona | $500 for first violation | _ | Yes | Yes | _ | _ | _ | _ |
| Arkansas | $50 to $250 for first offense | Up to a year for third offense | Yes | _ | Yes | _ | _ | _ |
| California | $100 to $200 | _ | Yes | Yes | _ | Yes | _ | _ |
| Colorado | $500 minimum | Community Service | _ | Yes | _ | _ | Four points | _ |
| Connecticut | $100 to $1,000 | 90 days | Yes | Yes | Yes | Yes | _ | _ |
| Delaware | $1,500 to $3,000 | _ | Yes | Yes | Yes | _ | _ | _ |
| D.C. | Up to $500 fine | 90 days | Yes | Yes | Yes | _ | _ | _ |
| Florida | $500 reinstatement fees | _ | Yes | Yes | Yes | _ | _ | Yes |
| Georgia | $200 to $1,000 | 1 year | Yes | Yes | _ | _ | _ | Yes |
| Hawaii | $500 | Yes (not more than 30 days) | Yes | Yes (after multiple offense) | Yes | Yes | _ | Yes |
| Idaho | $75 to $1,000 | Yes (not more than 6 months) | Yes | Yes | _ | _ | _ | Yes |
| Illinois | Minimum $500 | _ | Yes | Yes | – | _ | _ | Yes |
| Indiana | Up to $1,000 | _ | _ | Yes | _ | _ | _ | Yes |
| Iowa | $250 mandatory fine or community service | _ | Yes | _ | Yes | Yes | _ | _ |
| Kansas | $300 to $1,000 | 6 months | Yes | Yes | _ | _ | _ | _ |
| Kentucky | $500 to $1,000 | 90 days | Yes | Yes | _ | _ | _ | _ |
| Louisiana | $500 to $1,000 | – | Yes | Yes (if you cause an accident) | Yes | Yes | _ | _ |
| Maine | $100 to $500 | _ | Yes | Yes | _ | _ | _ | Yes |
| Maryland | $150 to $2,500 | – | Yes | _ | Yes | _ | – | _ |
| Massachusetts | $500 | 1 year | Yes | Yes | _ | _ | _ | |
| Michigan | $500 | 1 year | _ | Yes | _ | _ | _ | _ |
| Minnesota | $200 to $1,000 | 90 days | Yes | Yes | Yes | – | _ | _ |
| Mississippi | $1,000 | _ | _ | Yes | _ | _ | _ | _ |
| Missouri | $500 | 15 days | Yes | Yes | _ | _ | – | _ |
| Montana | $250 to $500 | 10 days | _ | Yes | _ | _ | 5 Points | _ |
| Nebraska | $50 reinstatement fees | – | Yes | Yes | – | _ | _ | – |
| Nevada | $250 to $1,000 | _ | Yes | Yes | Yes | Yes | _ | Yes |
| New Hampshire | Insurance not normally required | _ | – | – | _ | _ | _ | Yes |
| New Jersey | $300 to $1,000 | Community Service | _ | Yes | _ | – | _ | _ |
| New Mexico | Up to $300 | _ | Yes | _ | Yes | _ | _ | _ |
| New York | Up to $1,500 plus a $750 reinstatement fee | – | Yes | Yes | Yes | Yes | _ | _ |
| North Carolina | $50 to $150 | _ | Yes | Yes | Yes | _ | – | _ |
| North Dakota | $150 minimum | _ | Yes | Yes | Yes | _ | _ | Yes |
| Ohio | $100 to $600 | _ | Yes | Yes | Yes | _ | _ | Yes |
| Oklahoma | Up to $250 | 30 days in some cases | Yes | Yes | – | Yes | _ | _ |
| Oregon | $130 to $1,000 | _ | Yes | Yes | _ | Yes | _ | Yes |
| Pennsylvania | $300 | _ | Yes | Yes | _ | – | _ | _ |
| Rhode Island | $100 to $500 | _ | Yes | Yes | Yes | – | _ | – |
| South Carolina | $600 uninsured motorist fee | _ | Yes | Yes | Yes | _ | _ | Yes |
| South Dakota | $100 | 30 days | Yes | Yes | Yes | _ | _ | Yes |
| Tennessee | $300 | _ | Yes | Yes | _ | _ | _ | _ |
| Texas | $260 to $470 | _ | Yes | Yes | _ | _ | _ | Yes |
| Utah | $400 | _ | Yes | Yes | _ | _ | _ | _ |
| Vermont | Up to $500 | _ | _ | Yes | _ | _ | Two points | _ |
| Virginia | $200 | _ | Yes | Yes | Yes | _ | _ | Yes (if you haven’t paid the uninsured motor vehicle fee) |
| Washington | $550 | _ | _ | Yes | _ | _ | _ | _ |
| West Virginia | $200 | – | Yes | Yes | _ | _ | _ | _ |
| Wisconsin | Up to $500 | _ | Yes | Yes | _ | _ | _ | Yes |
| Wyoming | $250 to $750 | – | Yes | Yes | _ | _ | _ | 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
- Florida Highway Safety and Motor Vehicles. “Florida Insurance Requirements.” Accessed July 2025.
- Insurance Information Institute. “Automobile Financial Responsibility Laws By State.” Accessed July 2025.
- Insurance Information Institute. “Commercial Insurance.” Accessed July 2025.
- New Mexico Motor Vehicle Department. “Insurance.” Accessed July 2025.
- Ohio Department of Insurance. “Financial Responsibility Bonds to Comply with Ohio Law.” Accessed July 2025.
- Virginia General Assembly. “2023 Session.” Accessed July 2025.
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