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.
| State | Bond 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.
