Is Car Insurance Required in Every State?

Key takeaways

Almost every state requires liability coverage or another approved form of financial responsibility. According to its Insurance Department, New Hampshire is the exception.
Even in New Hampshire, you must meet the state's financial responsibility requirements after an at-fault accident.
Some states also accept a bond or a deposit, but each state sets its own rules for them.
Penalties for driving uninsured range from fines to a suspended registration, depending on the state.

The short answer

In every state except New Hampshire, the official sources behind our state summaries say you must carry liability coverage, or meet the state's financial responsibility requirement in another approved way, to drive legally.

The New Hampshire Insurance Department describes New Hampshire as the only state whose motor vehicle laws do not require drivers to carry auto insurance.

The one exception: New Hampshire

New Hampshire does not require auto insurance, but after an at-fault accident you must meet the state's financial responsibility requirements, which most people do with insurance. Your driving privileges may be suspended if you do not.

If you do buy a policy there, the minimum liability limits available are 25/50/25, and uninsured motorist coverage at limits equal to your liability coverage is required (RSA 264:15).

Other ways some states let you meet the requirement

Insurance is how most drivers meet the requirement, but some states also accept other forms of financial responsibility, such as a bond or a deposit. These are the ones named in the official sources behind our state summaries.

State	Other ways to meet the requirement
Alabama car insurance requirements	A motor vehicle liability bond or a cash deposit, in place of an insurance policy.
Massachusetts car insurance requirements	A bond or a deposit, in place of a liability policy.
Mississippi car insurance requirements	A bond, or a cash or security deposit, for the same amounts.
Missouri car insurance requirements	Proof of financial responsibility filed with the Department of Revenue, or a certificate of self-insurance for a company or religious organization.
Ohio car insurance requirements	A bond. Ohio's financial responsibility law can be met with insurance or with a bond.
Tennessee car insurance requirements	A bond or a cash deposit with the Department of Revenue. The Department's help center lists $65,000 for each; confirm the current amount with the Department.
Vermont car insurance requirements	A bond for the same amounts as the liability policy.
Washington car insurance requirements	A certificate of deposit with the Department of Licensing, or a surety bond of at least $60,000.
Wisconsin car insurance requirements	In limited situations, another accepted security such as a surety bond, personal funds or a certificate of self-insurance.

This table lists only what our sources mention. Other states may allow alternatives too, and each state sets the amounts and who qualifies. Ask the state agency before relying on one.

What happens if you drive without it

Penalties are set by each state. Here are a few examples from the official sources in our summaries:

Massachusetts: a fine of $500 to $5,000, up to one year in a house of correction, or both.
Virginia: driving and vehicle registration privileges are suspended, and to be reinstated you pay a $600 non-compliance fee and file an SR-22 for three years.
Washington: failing to provide proof of financial responsibility when an officer asks for it is a traffic infraction.
Indiana: the BMV imposes driving privilege suspensions and financial penalties on motorists found to be uninsured.
Tennessee: uninsured drivers pay fines and risk losing their vehicle registration.

Common mistakes

Assuming New Hampshire's rule applies in other states.
Assuming a bond or a deposit works everywhere. Each state sets its own rules for them.
Registering a car with an out-of-state policy where it is not accepted. Delaware and New York do not accept it.
Skipping the coverage because the car is parked. Maryland and Montana require it even if the vehicle is not driven.

General information only. It is not insurance, legal or financial advice. Rules differ by state and change over time, so confirm details with your state insurance department, your insurer and your policy.

Questions

Can I drive without insurance in New Hampshire?

The state's motor vehicle laws do not require auto insurance, but after an at-fault accident you must meet the financial responsibility requirements, and your driving privileges may be suspended if you cannot. Most people meet them with insurance.

Is a bond the same as insurance?

No. A bond or a deposit is a different way some states let you show financial responsibility. The state sets the amounts and the rules, so ask the agency before choosing one.

Do I need insurance if I do not drive my car?

Rules differ. Maryland and Montana require coverage on a registered vehicle even if it is not being driven, according to their official sources. Check your state's page.

Sources

New Hampshire Insurance Department: 2022 Automobile Insurance Consumer Guide (PDF)mm.nh.gov
Alabama Department of Revenue: Mandatory liability insurancerevenue.alabama.gov
Massachusetts General Laws, chapter 90, section 34Jmalegislature.gov
Mississippi Insurance Department: Auto insurancemid.ms.gov
Missouri Department of Revenue: Insurance informationdor.mo.gov
Ohio Department of Insurance: Minimum coverage requirements for auto insurance (PDF)insurance.ohio.gov
Tennessee Department of Revenue: Financial Responsibility Lawtn.gov
Vermont Statutes Title 23, chapter 11: Financial responsibility and insurancelegislature.vermont.gov
Washington OIC: Washington state's mandatory auto/motorcycle insurance lawinsurance.wa.gov
Wisconsin OCI: Frequently asked questions about automobile insurance (updated August 2026)oci.wi.gov
Virginia DMV: Insurance requirementsdmv.virginia.gov
Indiana BMV: Driver's manual, chapter 5 (PDF)in.gov

Informational only. Rules and policy terms change and differ by state and insurer. Confirm details with your policy, your insurer or your state insurance department.