Only New Hampshire allows you to drive without insurance, but you still need to prove you can pay for damage
New Hampshire is the only state that does not require you to carry auto insurance. Instead, the state lets you self-insure — meaning you must prove you have enough money set aside to cover damages if you cause an accident. In practice, this means having a deposit or bond with the state, or demonstrating liquid assets. Most people still buy insurance because the self-insurance route is expensive and complicated.
Every other state requires some form of liability insurance before you can legally drive. The amount varies by state, but all 49 others mandate at least basic coverage. Even states with low requirements — like Tennessee, which requires just $25,000 in bodily injury coverage per person — still require it.
If you drive in New Hampshire without insurance and without proof of self-insurance funds, you face fines, license suspension, and registration penalties. The state treats it the same as driving uninsured in other states.
Key Takeaways
- New Hampshire is the only state without a mandatory insurance requirement, but you must prove you can pay for damages through self-insurance or a bond.
- All other 49 states require liability insurance with minimum coverage amounts that vary by state.
- Self-insuring in New Hampshire requires substantial cash reserves or a deposit with the state, making it impractical for most drivers.
- Driving without insurance in any state, including New Hampshire, results in fines, license suspension, and registration holds.
How New Hampshire's self-insurance option works
To self-insure in New Hampshire, you must file a form with the Department of Safety and maintain proof that you have the financial resources to cover liability claims. The state requires you to show you can cover at least the minimum liability amounts — currently $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage.
You can meet this requirement by depositing cash with the state, posting a bond, or providing proof of assets. Most people use a surety bond, which costs money upfront and must be renewed. The bond typically costs more than a year of insurance premiums, especially for younger or higher-risk drivers.
If you cause an accident and don't have the funds to cover it, the state can suspend your license and registration. You also become personally liable for all damages beyond what you can pay, which can lead to wage garnishment or asset seizure.
Minimum insurance requirements in other states
Every state except New Hampshire sets its own minimum liability coverage amounts. These minimums are usually expressed as three numbers — for example, 25/50/25 means $25,000 per person for bodily injury, $50,000 total per accident for bodily injury, and $25,000 for property damage.
States with the lowest minimums include Tennessee, Mississippi, and Kansas, all at 25/50/25. States with higher requirements include California at 15/30/5 (lower limits but still mandatory) and New York at 25/50/10. A few states, like Virginia and North Carolina, allow you to meet the requirement through a bond or proof of financial responsibility instead of insurance, but you still must prove it.
The minimum coverage in your state covers only the other person's damages if you're at fault. It does not cover your own vehicle damage, medical bills, or uninsured drivers. Most people carry additional coverage beyond the state minimum.
What happens if you drive without insurance in states that require it
Driving without insurance where it's required results in immediate penalties. Most states suspend your driver's license, typically for three to six months on a first offense. Your vehicle registration can also be suspended or revoked, meaning you cannot legally drive even if you have a valid license.
Fines range from $100 to $500 or more, depending on the state and whether it's a repeat offense. Some states also require you to file an SR-22 form, which is a certificate of financial responsibility that proves you have insurance. You must maintain this filing for three years, and it typically costs extra.
If you cause an accident while uninsured, you become personally responsible for all damages. The other driver can sue you directly, and a judgment can follow you for years through wage garnishment or bank levies. This is why insurance is required — to protect both you and other drivers from financial ruin.
Why most drivers in New Hampshire still buy insurance
Even though New Hampshire does not require it, about 90 percent of drivers in the state carry insurance. The reason is simple: self-insuring is more expensive and more risky than buying a policy.
A surety bond to self-insure typically costs $500 to $1,500 per year, depending on your driving record. A basic liability insurance policy often costs less, especially if you shop around or may have access to for discounts. Insurance also covers you if someone else causes an accident and cannot pay, and it includes legal defense if you're sued.
Self-insurance also means you personally absorb the full cost of any accident you cause. If you cause a $50,000 accident and only have $30,000 set aside, you owe the remaining $20,000 out of pocket. Insurance companies handle claims and negotiate settlements, protecting your personal assets.
States that allow alternatives to traditional insurance
A few states beyond New Hampshire allow you to meet the insurance requirement through alternatives, though these are not the same as no requirement. Virginia, North Carolina, and Oklahoma allow drivers to post a cash deposit or bond with the state instead of buying insurance. Like New Hampshire's system, this requires substantial upfront money and does not protect you if someone else causes an accident.
Some states also recognize out-of-state insurance or allow you to prove continuous coverage through other means. However, all of these alternatives still require you to demonstrate financial responsibility — there is no state where you can legally drive with zero coverage or proof of funds.
If you move to one of these states or plan to drive there, check with your state's Department of Motor Vehicles for the exact requirements and the forms you need to file.
What to do if you're moving to or visiting New Hampshire
If you're moving to New Hampshire, you have two options: buy insurance like most drivers do, or file for self-insurance status with the state. To self-insure, contact the New Hampshire Department of Safety and request the self-insurance application. You'll need to show proof of funds or post a bond before you can register your vehicle.
If you're visiting New Hampshire from another state, your out-of-state insurance remains valid. You do not need to change your coverage or file anything with New Hampshire. Your home state's insurance is recognized across state lines.
If you're a New Hampshire resident driving in other states, your insurance (or self-insurance status) must meet the minimum requirements of the state you're in. Most states' minimums are similar, so this is rarely a problem. Check the specific state's requirements if you're driving to a state with unusually high minimums.
Frequently Asked Questions
Can I drive in New Hampshire without insurance if I have a license from another state?
No. If you're a New Hampshire resident, you must either carry insurance or self-insure with the state. If you're visiting from another state, your out-of-state insurance satisfies New Hampshire's requirement. If you're moving to New Hampshire, you have 30 days to either obtain insurance or file for self-insurance status.
What if I cause an accident in New Hampshire without insurance or self-insurance?
You become personally liable for all damages. The other driver can sue you directly, and a court judgment can result in wage garnishment, bank levies, or asset seizure. Your license and registration will be suspended, and you'll face fines and penalties.
Is self-insurance cheaper than buying insurance in New Hampshire?
Usually not. A surety bond for self-insurance typically costs $500 to $1,500 per year, while liability insurance often costs less, especially with discounts. Insurance also covers accidents caused by other drivers, while self-insurance does not.
Do I need full coverage insurance in New Hampshire, or just liability?
New Hampshire only requires liability coverage. Full coverage — which includes collision and comprehensive — is optional. However, if you have a loan or lease on your vehicle, your lender will require full coverage as a condition of the loan.
What states have the lowest insurance requirements?
Tennessee, Mississippi, and Kansas have the lowest minimums at 25/50/25 ($25,000 per person, $50,000 per accident for bodily injury, $25,000 for property damage). Most other states fall in the 25/50/25 to 30/60/25 range. Check your specific state's Department of Motor Vehicles for exact requirements.