Do all states require car insurance? It is a question that many feel the answer is yes. However, there are exceptions.
In the US, 47 states and the District of Columbia require that motor vehicle drivers have auto insurance. Most states require that drivers have liability insurance which covers the other vehicle and passengers in case they cause an accident. Plus, there is usually a requirement for underinsured or non-insured drivers who cause an accident to occur and inflict damage and injury to your vehicle, yourself, and your passengers respectively.
However, there are three states with no car insurance and they operate under different laws compared to the other 47. You can purchase car insurance in the three states just like in the rest of the country, but there are options available that preclude mandatory requirements for vehicular insurance.
States Without Mandatory Auto Insurance
Mississippi, New Hampshire, and Virginia are the three states where mandatory car insurance does not apply. The reasons why vary from the cultural makeup of the state’s population that resists mandatory requirements such as New Hampshire to studies by various groups that indicate mandatory insurance is not a good idea.
Whatever the reason, these three states are different than the rest because they offer options under state laws.
Mississippi (MS): Of the three states, Mississippi has the simplest laws that govern not having vehicle insurance. Instead of purchasing insurance, the driver has the option to post bonds or cash. What is posted acts in a sense as insurance in case the driver is the cause of the accident because what is deposited will be used to pay for damages and injuries sustained.
New Hampshire (NH): The owners of motor vehicles must satisfy a requirement that is personal in nature. They do not make monthly payments for car insurance but instead must prove that they can pay out of their own pocket in case of an accident. This means having the money on-hand to pay for most damages and injuries that are sustained.
Virginia (VA): Here, the residents may pay an uninsured motorist fee which varies depending on the requirements. The payment of the fee denotes that the vehicle does not have insurance coverage and may be used in part to pay for damages or injuries sustained in an accident.
The Future of No Mandatory Car Insurance
Currently, there is no serious movement to change the laws in Mississippi, New Hampshire, or Virginia when it comes to making car insurance mandatory. Conversely, there does not appear to be any widespread movement to remove the necessary requirements for car insurance in the other 47 states and District of Columbia.
This means for residents of states that don’t require car insurance; the best advice is that they carry enough cash-on-hand to ensure that if they do cause an accident, they can pay for the damages and injuries incurred.
However, they also have the option to purchase car insurance on their own which can also pay for the damages.