McKayla Girardin, Car Insurance Writer
@mckayla_girardin
Yes, you need car insurance to drive legally in every state except Virginia and New Hampshire, where you can opt out of coverage if you prove that you can afford any damage you cause. If you choose to get car insurance or live in any other state, you’ll have to purchase at least the legally mandated amount of coverage.
On the other hand, you do not need car insurance to:
- Drive a borrowed vehicle. You can legally drive a borrowed vehicle if that car is insured by someone else and they have given you permission to drive the car.
- Drive a rental car. You can get rental car insurance for however long you intend to drive the vehicle. Rental car insurance works like a standard auto insurance policy and includes at least the minimum coverage required by your state.
The minimum amount of car insurance required by states always includes liability insurance. Some states and auto lenders also require additional types of coverage.
What Insurance You Need to Drive
Liability Insurance
Liability insurance is required in almost every state and is used to pay for other people’s injuries and property damage if you cause an accident.
Uninsured/Underinsured Motorist Insurance
Uninsured motorist (UM) insurance is required in 20 states and the District of Columbia, while underinsured motorist (UIM) is required in 14 states. These types of insurance cover your own expenses when the at-fault driver does not have enough coverage.
Personal Injury Protection
Personal injury protection (PIP) is required in 12 states and can pay for your medical expenses after an accident, regardless of fault.
MedPay
MedPay is only required in Maine and New Hampshire. It pays for medical expenses after an accident, regardless of fault, and has the added benefit of not requiring a deductible.
Common Penalties for Driving Without Insurance
- Fines of up to $5,000
- Driver’s license suspension
- Jail time
- Vehicle impoundment
- SR-22 requirement
To learn more, check out WalletHub’s guide to the dangers of driving without insurance.
People also ask
What happens if you're in an accident without insurance?
If you’re in an accident without insurance and you are at fault, you will need to pay out of pocket for any damage or injuries you cause. You will also face your state’s penalties for driving without insurance, which could include fines, a suspended license, and even jail time. If you are uninsured and the other driver is at fault, however, their insurance will cover your bills up to their policy limits.
Almost every state requires car insurance,...
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