Car Insurance

States Without Mandatory Car Insurance

In most states, having car insurance is mandatory. Even though New Hampshire and Virginia don’t require residents to have vehicle insurance under certain conditions, you might still need one.

New Hampshire residents aren’t required to purchase vehicle insurance at all. But if a car accident occurs, the driver(s) are going to be liable for the damages. However, there are some limits to it. In New Hampshire, drivers are responsible for paying up to $25,000 in property damage and $50,000 for liability.

On the other hand, Virginia residents can only avoid getting vehicle insurance if they pay the state $500 annually. While you’re going to pay to your state, you won’t get coverage. With that said, Virginia residents are better off getting insurance than paying the state for not having insurance.

Bond Instead of Insurance

If you have some savings in the bank, you can deposit cash or post a bond with the state in lieu of insurance. By doing that, you can just tell the state that you have enough money saved up in the bank and if something were to happen, you can cover the costs.

The amount that will make you exempt from purchasing vehicle insurance depends on the state. As of 2020, here are the bond or deposit amount you need to have to be exempt from vehicle insurance.

StateBond or Deposit Amount
Alabama$50,000
Arizona$40,000
California$35,000
Colorado$35,000
Delaware$40,000
Idaho$50,000
Indiana$40,000
Iowa$55,000
Maine$127,000
Maryland$75,000
Massachusetts$10,000
Missisippi$15,000
Missouri$60,000
Montana$55,000
Nebraska$75,000
New Mexico$60,000
New York$25,000
North Carolina$85,000
Ohio$30,000
Oklahoma$75,000
Rhode Island$75,000
South Carolina$35,000
South Dakota$25,000
Tennessee$60,000
Texas$55,000
Utah$160,000
Vermont$115,000
Virginia$50,000
Washington$60,000
Wisconsin$60,000
Wyoming$25,000

Surely, you have plenty of options to not purchase vehicle insurance but is it really worth it though? It is suggested by many that you should always have insurance on your car. Regardless of your experience, you can never know what’s going to happen and insurance can cover unexpected costs.

Kelvin Richards

Doing something today that your future self will thank you for is what insurance means to me. This is the one and only reason I write about insurance. If there is something that can be covered with insurance, you can see it in the articles I wrote.

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