Last Updated on December 27, 2025

In almost every part of the U.S., you must have auto insurance (or a state-approved alternative) to legally drive a registered vehicle on public roads. Requirements are set by each state, but the National Association of Insurance Commissioners (NAIC) notes that 49 states plus Washington, D.C., require drivers to carry auto liability insurance. New Hampshire is the major exception.

What you’re required to buy isn’t the same everywhere. Many drivers only carry a minimum coverage auto insurance policy (often liability-only), while other states require additional protections like medical benefits or uninsured motorist coverage. And if you finance or lease your vehicle, your lender will usually require “full coverage” (comprehensive and collision) even if your state does not.

• Driving on public roads: You’re usually required to have insurance while operating a vehicle (and often while the vehicle is registered).
• Minimums vary: Liability limits and required coverages can differ widely and can change over time.
• Proof matters: Many states require you to carry proof of coverage and provide it after a crash or traffic stop.

Key Takeaways

• In 49 states (plus Washington, D.C.), you typically must carry auto liability insurance (or an approved alternative) to legally drive on public roads.
• New Hampshire is the major exception, but drivers can still be held financially responsible for damage they cause—and certain situations can require proof of insurance.
• State minimum coverage is often liability-only, which usually doesn’t pay to repair your own vehicle; lenders may require full coverage if you finance or lease.
• Driving uninsured can lead to fines, registration/license suspension, and expensive out-of-pocket liability if you cause an accident.

When Is Auto Insurance Required?

In most states, auto insurance is required any time you drive your car on a public road. In many places, you also need to maintain insurance as long as your vehicle is registered—even if you don’t drive it every day.

Common situations where coverage is required include:

• Driving on public streets and highways
• Registering or renewing registration for a vehicle
• After an accident (especially if you were at fault)
• After serious violations (some states require filings like an SR-22/FR-44)

Important: Driving only on private property is different. If a vehicle is never operated on public roads, state insurance laws may not apply the same way—but the moment you drive on public streets, the usual rules kick in. When in doubt, check your DMV rules (and your lender/lease agreement if you have one).

Is Auto Insurance Required in Every State?

Nearly. New Hampshire is the best-known exception: most drivers there aren’t required to carry a traditional auto insurance policy as a condition of driving, but they can still be held financially responsible for damage they cause—and certain situations can trigger an insurance requirement.

It’s also worth noting that rules can change. For example, Virginia used to allow some drivers to opt out by paying a fee, but that option was eliminated. The Virginia DMV announced that the uninsured motor vehicle fee ended and that insurance is now required for vehicles registered in Virginia effective July 1, 2024 (source).

Even where insurance is “optional” for some drivers, states can still enforce financial responsibility rules—meaning you may need to prove you can pay for injuries and damage you cause. In practice, that’s one reason most drivers choose to stay insured.

What Type of Auto Insurance Is Required by Law?

In most states, the legal baseline is liability insurance. Liability coverage pays for other people’s injuries and property damage when you cause an accident. It generally does not pay to repair your own vehicle.

Liability insurance typically includes two core components:

• Bodily injury liability: Helps pay for medical bills and related costs if you injure someone in a crash you caused.
• Property damage liability: Helps pay to repair or replace someone else’s vehicle or property (like a fence, building, or pole) that you damage.

You’ll often see liability limits shown as three numbers (for example, 100/300/100). These generally represent:

• Maximum bodily injury coverage per person
• Maximum bodily injury coverage per accident
• Maximum property damage coverage per accident

State minimums are often much lower than what many drivers choose. If you’re not sure what higher limits mean, here’s a plain-English guide to 100/300 insurance.

What Else Might Your State Require?

Depending on your state, you may be required to carry more than liability-only coverage. Two common add-ons are:

• Personal injury protection (PIP): Required in many no-fault states and designed to help pay for medical costs (and sometimes lost wages) regardless of who caused the crash.
• Uninsured/underinsured motorist coverage: Required in some states and helps protect you if the other driver has no insurance or not enough.

PIP and medical-related coverages can also help with longer recovery costs. If you’ve ever wondered whether auto insurance can help with rehab expenses after injuries, see how auto insurance handles rehab costs.

What a Minimum Policy Usually Doesn’t Cover

A state-minimum policy is designed to meet legal requirements—not to fully protect you financially. In many states, the minimum required coverage won’t pay for:

• Damage to your vehicle (unless you add collision/comprehensive)
• The full cost of a major accident if claims exceed your limits
• Your own medical bills in at-fault states unless you carry MedPay/PIP (or similar coverage)

That’s why many drivers choose higher liability limits and add physical damage coverage—especially if the vehicle is newer or still financed. If you’re balancing protection versus price, start by understanding what “insurance coverage” really means, then compare options.

Penalties for Driving Without Insurance

Penalties vary by state, but driving without required coverage can get expensive fast. Depending on where you live and the situation, consequences can include:

• Tickets and fines
• License and/or registration suspension
• Vehicle impoundment or plate confiscation
• Being required to file proof of insurance (like an SR-22) for a period of time
• Higher rates later (a lapse can signal higher risk to insurers)

Most importantly: if you cause a crash while uninsured, you can be personally responsible for injuries and damage—potentially far beyond what most households can comfortably pay out of pocket.

How to Stay Legal and Avoid a Coverage Lapse

If you want to avoid fines, reinstatement fees, and rate hikes, focus on staying continuously covered. Practical steps include setting up autopay, renewing before expiration, and not canceling a policy until your replacement coverage is active (or your plates are surrendered, if your state requires that).

If you’re between cars or trying to manage costs, it helps to understand how insurers treat gaps. Here’s what to know about how long you can be without car insurance before it starts creating real problems.

What’s the Cheapest Legal Auto Insurance You Can Get?

In most states, the cheapest legal option is a minimum-liability policy that meets your state’s requirements. However, “cheapest” isn’t always “best” if the limits are too low to protect you after a serious crash. If you’re shopping on a tight budget, start with the cheapest car insurance you can get, then consider modest limit increases that can meaningfully improve protection.

What’s the Minimum Insurance Requirement in My State?

Minimum requirements differ from state to state, and they can change over time. You can quickly confirm your state’s current minimums here:

• Click here to view the current auto insurance requirements in your state.

Also keep in mind that required coverage can impact prices. Some states have unique systems that can make premiums higher than average. Michigan, for example, has long had a reputation for high costs—here’s why car insurance is so expensive in Michigan.

FAQs on Whether Auto Insurance Is Required

Final Word: Is It Required to Have Auto Insurance?

For most drivers, yes—auto insurance is required to legally drive on public roads. In 49 states and Washington, D.C., that usually means carrying at least state-minimum liability coverage. New Hampshire is the notable exception, but financial responsibility rules still apply, and certain situations can require proof of insurance.

Even when you’re only buying the legal minimum, make sure you understand what it does (and doesn’t) cover. The minimum keeps you legal; higher limits and extra coverages are what help protect your finances after a real-world accident.