Do You Have To Have Car Insurance?

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Key Takeaways

Except for New Hampshire, every U.S. state requires drivers to have at least the minimum amount of car insurance coverage. In New Hampshire, you’re required to get car insurance after an at-fault accident.
Required coverage amounts vary depending on where you live, but it’s usually always a good idea to carry more than the bare minimum to increase your level of financial protection.
Car insurance helps protect you from a wide array of incidents, such as having to pay medical expenses if you get hurt crossing a street or replacing your vehicle if it gets stolen.

Is Car Insurance Required?

Almost all states require car insurance to register and drive a car. If your state requires auto insurance, it is illegal to drive without the minimum coverage. But why do you have to have car insurance? Because in the event of an accident, car insurance can help pay for damages and medical costs.

If you or your passengers are injured in an accident, you’ll want your coverage to at least meet the minimum car insurance requirements. This will help pay for medical bills. Your insurance may also help cover these costs if your vehicle is damaged in a car accident.

Do You Have To Have Car Insurance in Every State?

Most states require drivers to have car insurance, except for New Hampshire.

In New Hampshire, if you don’t have auto insurance but are to blame for a crash, you are required to get car insurance for at least three years after the accident.

Do you need car insurance in your state? What coverages are required and how much? To make life easier, The Hartford created a car insurance calculator to help you estimate how much coverage you may need based on where you live and what your insurance goals are. We’ll provide information on your state’s required auto coverages, so you’ll know exactly how much you need to drive safely where you live.

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Which State Do You Drive In?

Why Do We Ask This?

States have requirements for how much car insurance coverage drivers must have. The minimum required amount can vary for bodily injury liability, property damage liability and uninsured and underinsured motorist coverage.

Do You Own, Finance or Lease Your Vehicle?

Why Do We Ask This?

If you lease or finance your car, the lender or leasing company typically has coverage requirements and may have to be named on the policy.

When It Comes To Insurance, What Matters Most?

Paying a lower cost

Getting the most protection

Why Do We Ask This?

Everyone has different needs for car insurance. If you want to pay less for coverage, you'll have higher out-of-pocket costs with a claim. If you want the most protection, you'll pay more for coverage but have lower out-of-pocket costs with a claim.

Understanding State Minimum Car Insurance

State car insurance requirements vary. Each state may require unique minimum coverage levels for property damage liability and bodily injury liability. While many drivers may opt for cheap car insurance that only covers the state’s minimum requirements, this choice may leave a driver paying more money out of pocket in the event of an accident.

You may choose to purchase even more coverage than the minimum liability insurance limits your state requires. There are many types of car insurance coverage that can provide financial protection in the event of a covered claim. For example:

Bodily Injury Liability

Bodily injury liability helps protect you from financial loss if you hurt someone in an accident.

Property Damage Liability

Property damage liability helps pay for damage that your car causes to property you don’t own.

Comprehensive Coverage

Comprehensive insurance helps cover repair or replacement costs resulting from things like vandalism, natural disasters and theft.

Collision Coverage

Collision insurance helps cover the cost to repair or replace your car if you hit another vehicle or object, like a fence.

Medical Payments Coverage

Medical payments coverage, an optional coverage, helps provide financial assistance for medical expenses and rehabilitation after an accident.²

Uninsured Motorist Coverage

Uninsured motorist coverage helps cover repairs or medical costs after an accident if the other person doesn’t have any or enough insurance, or by a hit-and-run driver.

Important:

You may not have enough protection if you choose your state’s minimum required coverage amount.

Why Do You Need To Have Car Insurance?

Whether you’re required to have the state minimum car insurance coverage or not, there are many reasons why car insurance is important. Auto insurance can help you:

Cover the costs of large expenses if you are involved in an accident, including property damage, medical expenses and more.
Protect yourself, your family members and your passengers with personal injury protection.
Pay off your car loan if you total your car and the pre-accident value of your car is less than your car loan. This is called gap insurance.
Get help with vehicle repairs and replacements. After you file a claim, your insurance company can help you manage the process and provide the support you need.
Be prepared for emergencies. Many insurance companies provide access to roadside assistance services that can help you when you have a flat tire or your car breaks down.
Follow the law. Car insurance is mandatory in most states. If you do not have car insurance where it is legally required, you may receive a fine, your driver’s license may be suspended or you may be sentenced to jail time.

Get a Quote From The Hartford

It’s important to have the coverage you need instead of just getting the cheapest car insurance. Having the right auto insurance policy protects you, your passengers and your property if you’re in an accident. AARP^® Auto Insurance from The Hartford¹ makes it easy to ensure you’re covered wherever the road takes you. Simply call The Hartford at 888-546-9099 or get a quote online in minutes today.

Frequently Asked Questions About Car Insurance Requirements

Which States Do Not Require Car Insurance?

New Hampshire is the only state that doesn’t require auto insurance. However, if you live in New Hampshire and choose not to purchase car insurance, you’ll still be financially responsible for paying out of pocket for any property damage or medical bills after an accident.

Do I Need Car Insurance if I Don’t Have a Car?

If you don’t have a car and don’t drive, then you likely don’t need car insurance. But there are benefits to having non-owner car insurance that are worth considering.

Do You Need Car Insurance To Drive Someone Else’s Car?

If you occasionally drive someone else’s car, you may not need car insurance, but you’ll have to pay out of pocket for any expenses if you’re in an accident. If you often drive a car owned by someone else in your family, you should have them add you to their auto insurance policy.

Do You Need Insurance on a Car That Doesn’t Run?

Yes, if your car is registered, then you’ll need car insurance – even if it doesn’t run. If you cancel your vehicle registration, then you can drop your insurance.

Why Do I Have To Have Car Insurance?

Almost all states require you to carry the state minimum car insurance in order to register your car. If you do not have car insurance where it’s legally required, you may receive a fine, your driver’s license may be suspended or you may be sentenced to jail time.

Is Car Insurance Necessary for Leasing a Car?

If you’re leasing a car, insurance is usually required by your lender. Most states require that leased and financed cars have liability coverage, comprehensive insurance and collision protection.

What Happens if I Don’t Insure My Car?

Failing to insure your car can lead to legal and financial repercussions. If you live in a state that requires auto insurance, and you are caught driving with a lapse in car insurance coverage, you could:

Have your driver’s license and vehicle registration suspended
Be charged fees to reinstate your license or registration
Have your car impounded or towed
Face a community service fine
Be arrested
See your insurance rates increase in the future

No matter where you live, if you’re in a car accident and you don’t have auto insurance, you’ll likely have to pay out of pocket for damages or medical bills.