The short answer: Yes, it’s illegal to drive without car insurance in almost every state.
States require a minimum amount of car insurance so drivers can pay for injuries or damage they may cause in an accident. It also financially protects drivers involved in a crash so they aren’t left having to pay out of pocket.
How much car insurance do I need to legally drive?
You need an auto policy with your state’s minimum insurance requirements in order to legally drive. Each state has its own car insurance requirements, which typically include a minimum amount of liability insurance. Some states also require uninsured/underinsured motorist coverage, personal injury protection or medical payments coverage.
Learn more: Types of car insurance
Insurers must sell you at least your state’s minimum required insurance, so as long as you buy an auto policy, you’ll meet your state’s legal requirements.
If you live in a state that only requires liability insurance, a minimum coverage policy would pay for the damage you may do to another person or their property, up to your policy limits, but not damage done to you or your vehicle.
Liability limits are usually expressed in a format like 25/50/25, which means:
- $25,000 for bodily injury liability per person per accident.
- $50,000 of bodily injury liability total per accident.
- $25,000 of property damage liability per accident.
For example, if your state requires 25/50/25 coverage and you cause $30,000 in property damage, your insurer would pay $25,000 and you would owe $5,000 out of pocket.
Jerry insightPurchasing only your state’s requirement insurance limits may leave you financially vulnerable, especially if you cause an accident with expensive injuries and property damage. You can increase your liability limits and add full coverage car insurance to lower your chances of having to pay out of pocket in case of an accident.
New Hampshire is the exception because drivers there can forego the state’s 25/50/25 coverage requirement if they can show a different type of proof of financial responsibility.
If you have a loan or lease on your vehicle, the lender will require
What are the consequences of driving without insurance?
The consequences of driving without insurance vary, but can include:
- Fines.
- Suspended license and registration.
- Car impoundment.
- Jail time.
- A lawsuit, if you cause an accident.
- Increased insurance rates.
- Fewer insurers willing to cover you.
When and how your lack of insurance is discovered affects the consequences. It will usually be revealed that you don’t have insurance if you’re pulled over or in an accident.
What happens if you’re pulled over while driving without insurance?
If an officer discovers you don’t have insurance during a traffic stop, the consequences vary by state. Here are the most common outcomes.
- You could pay a fine. The fine for your first offense can range from about $100 to $500, though it can reach above $1,000 in some states. Repeat offenses typically come with steeper fines.
- Your license and registration could be suspended. You can’t legally drive if your license is suspended, and nobody can legally drive your car if its registration is suspended.
- Your car could be impounded. In some states, your car could be impounded and you’ll likely have to pay to get it back.
- You could go to jail. This is typically a maximum consequence, especially if it’s your first offense, but multiple states’ laws include jail time as a possible consequence of driving without insurance.
- You may need an SR-22 form for future coverage. You may be required to file an SR-22 form through your insurer to prove you’re carrying state-required coverage after an insurance lapse. Some insurers don’t cover drivers who require this form.
What happens if you’re in a car accident without insurance?
Not only can you expect to face legal consequences for driving without insurance, like fines and license suspension, but you’ll likely be on the hook for a major bill, depending on your state’s laws and which driver was at fault in the accident.
At-fault states
The majority of states have at-fault insurance laws, meaning the driver who caused the accident is financially responsible for it.
If you caused the accident: You’ll be required to pay out of pocket for any damage and injuries, which can include:
- Vehicle repairs or replacement for the other driver.
- Medical costs, including for your own passengers.
- Property damage, such as fences or guardrails.
If you can’t pay those costs, you could be sued.
If you didn’t cause the accident: Uninsured drivers who are not at fault may have a longer and more complicated claims process.
Jerry insightDrivers can purchase uninsured motorist coverage (UM) to help cover expenses if they’re hit by someone without insurance. This doesn’t mean the uninsured driver is no longer financially responsible for injuries and property damage they caused. An insurer can still sue them for the amount they covered for the insured driver’s expenses.
No-fault states
Fewer states have no-fault insurance laws. Living in one means drivers go to their own insurers first to cover their medical expenses after a crash, no matter who caused it. No-fault states require drivers to carry personal injury protection (PIP), which pays for drivers’ and their passengers’ medical bills, lost wages and other expenses after an accident. Once a driver’s PIP limits are hit, they can pursue the at-fault driver for additional compensation.
If you’re in a no-fault state and cause an accident while uninsured, you may face lower out-of-pocket costs, but once the other driver hits their insurance limits, you may still be held responsible for any remaining property damage and medical costs.
“No pay, no play” laws
Some state laws limit an uninsured driver’s ability to collect damages after an accident they didn’t cause. These “no pay, no play” laws may prevent you from receiving payment for things like pain and suffering and emotional distress, or limit compensation for your injuries and property damage.
How to get car insurance when you don’t have it
After a lapse in coverage, it may be difficult to find an auto insurer willing to cover you. If you find one, you can expect a higher rate than if you’d been consistently insured.
To find affordable coverage after a lapse, get quotes from multiple insurers. Even if one insurer denies you coverage or charges a high, another may offer a more affordable policy.
When you shop for quotes, be sure to check for discounts. Insurers may offer savings for paying your full premium upfront, insuring a good student, having certain safety features on your vehicle and being an active or retired military member.
It’s wise to shop for car insurance every year — ideally every six months, if you’re unhappy with your rate. There’s no penalty for shopping, and it can often save you money.
Annie is a writer and editor at Jerry and has more than a decade of experience writing and editing digital content. Before joining Jerry, she was an assistant assigning editor at NerdWallet, where she covered loans. Previously, she worked at USAA and newspapers in Minnesota, North Dakota, California, and Texas. She holds a bachelor’s degree in journalism from the University of Minnesota.
Ben Moore is a writer and editor at Jerry and an auto insurance expert. He previously worked as a writer, editor and content strategist on NerdWallet’s auto insurance team for five years. His work has been published in The Associated Press, Washington Post, Chicago Sun-Times, MarketWatch, Nasdaq and Yahoo News. He also served as a NerdWallet spokesperson, with appearances on local broadcast television and quotes in Martha Stewart and Real Simple magazine.
Ben has an extensive background in digital marketing, working on affiliate and programmatic advertising campaigns for brands like Cabela’s, H&R Block and Sears. He holds a bachelors degree in marketing from Olivet Nazarene University.
