Yes, the situation you are describing is somewhat true. I believe the state that you are referring to is New Hampshire and sometimes Florida.

The NH Insurance Department states that New Hampshire law does not require you to have automobile insurance. However, if you have an "at fault" accident without having insurance coverage, you will be required to post a bond or cash equal to the amount of damage you caused in that accident.

If at fault in an accident in this state you must also satisfy the NH Financial Responsibility requirements to continue to operate a vehicle in New Hampshire. These minimum limits are 25/50/25 (Bodily Injury $25,000 per person; $50,000, 2 or more persons; and Property Damage $25,000). A $75,000 single limit policy will also satisfy the minimum requirement.

Most all states have some sort of auto insurance or motor vehicle financial responsibility law. Some motor vehicle laws can be a bit confusing as what exactly is required.

For example, Florida law only requires a motorist to carry a minimum of $10,000 of personal injury protection (PIP) and $10,000 of property damage liability (PD).The FL Department of Highway Safety and Motor Vehicles does not require you to carry bodily injury liability (BI) in order to obtain vehicle registration. However, if you are involved in an accident in which the other party is injured, you will be penalized for not having this coverage.

Some used to say your first accident is "free", but that really isn't true. You should be responsible for your actions behind the wheel of car, regardless of what the government requires of you.

Motorcycle insurance in Florida also has confusing laws around it. Motorcycle insurance is not required to register a motorcycle in FL. However, if a motorcycle operator is charged in a crash with injuries, then the owner or owner/operator is financially responsible for bodily injuries and property damage to others.

Furthermore, if no liability coverage was in effect for the motorcycle at the time of the accident, then bodily injury/property damage liability insurance must be purchased and kept for 3 years to avoid license and tag/registration suspension or to reinstate license and tag/registration after suspension.

To find out about specific states auto insurance laws you can normally obtain information on this subject by contacting a state's Department of Insurance or Department of Motor Vehicles.