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Insurance FAQ

What are the laws regarding automobile insurance?

The laws vary by state, but most require basic liability coverage. States want to be sure that motorists have some financial backing in the event of a collision or any insurance-related incident. Most states require insurance to operate a vehicle in any circumstance, but there are a few exceptions:

Tennessee and Wisconsin do not require liability but legally expect drivers to prove adequate "financial responsibility" in the event of a collision. (Source: TN, WI DMV websites)

New Hampshire initially requires no insurance but does temporarily after a collision. (Source: NH DMV website)

Virginia is a rare exception, allowing a driver to pay a $500 Uninsured Motor Vehicle fee to legally operate without insurance at his/her own risk. However, the fee expires with the registration and must be renewed. Drivers in Virginia opting for insurance must meet the state's minimum coverage. (Source: VA DMV website; http://www.dmv.virginia.gov/webdoc/citizen/vehicles/insurance.asp)

Drivers in these four states often still carry insurance as protection.