{"id":5753,"date":"2021-07-20T20:21:50","date_gmt":"2021-07-20T20:21:50","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=5753"},"modified":"2025-04-25T21:58:58","modified_gmt":"2025-04-25T21:58:58","slug":"really-need-car-insurance","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/really-need-car-insurance\/","title":{"rendered":"Do I Really Need Car Insurance?"},"content":{"rendered":"\n

Among all the bills you have to worry about, you might be wondering if you really need car insurance. Did you know that auto insurance coverage is mandatory<\/strong> in all states except New Hampshire?<\/p>\n\n\n\n

Actually, that is not bad news.\u00a0 When you learn about car insurance<\/a>, you will realize that there are benefits to you as a driver. Not only that, it protects you as a pedestrian or even as a passenger in another car.<\/p>\n\n\n\n

Mandatory auto insurance coverage can also be referred to as liability insurance or even third-party insurance.  Each state handles this in different ways.<\/p>\n\n\n\n

Is State Minimum Insurance Enough?<\/h2>\n\n\n\n

The state’s minimum insurance will only cover third-party property and bodily injury when the accident is your fault. It doesn’t cover any damage to your own vehicle or medical expenses for you and your passengers.  Also, liability insurance won’t cover any accidental damage to your car, incidentals, vandalism, weather damage, or any other mishap that drivers might face.<\/p>\n\n\n\n

Below you will find a chart pointing to the different states that do not require you to purchase an insurance policy. But keep in mind you cannot escape liability if something happens while driving your car. It will be your responsibility to cover any damage to third parties.<\/p>\n\n\n\n

For the best information, refer to your state’s department of motor vehicles to find the mandatory requirements. Use the National Association of Insurance Commissioners website<\/a> to locate your state’s official insurance department.<\/p>\n\n\n\n

Car Insurance Requirements by State<\/h2>\n\n\n\n

(Please refer to the car insurance acronym guide<\/a> at the bottom)<\/p>\n\n\n\n

States<\/strong><\/a><\/td>Requirements<\/strong><\/a><\/td><\/tr>
AL, AK, AZ, AR, CA, CO, GA, ID, IN, IA, LA, MS
MT, NV, NM, OH, OK, RI, TN, TX, WA, WY<\/td>		BI and PD<\/td><\/tr>
CT, IL, MO, NB, SD, WI<\/td>BI, PD, and UIM BI<\/td><\/tr>
DC, MD, NC, SC, VT, VA, WV<\/td>BI, PD, UIM BI, and UIM PD<\/td><\/tr>
KS, ME, MA, MN, NJ, NY, ND, OR<\/td>BI, PD, UIM BI, and PIP<\/td><\/tr>
DE, HI, KY, MI, PA, UT<\/td>BI, PD, and PIP<\/td><\/tr>
FL<\/td>PD, and PIP<\/td><\/tr>
NH<\/td>Not Required <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Car Insurance Acronyms<\/h3>\n\n\n\n

BI<\/strong>: bodily injury<\/a>
PD<\/strong>: property damage<\/a>
UIM BI<\/strong>: uninsured\/underinsured motorist bodily injury<\/a>
UIM PD<\/strong>: uninsured\/underinsured motorist property damage<\/a>
PIP<\/strong>: personal injury protection insurance<\/a><\/p>\n\n\n\n

Specific Car Insurance Information by State<\/h2>\n\n\n\n

We put together some detailed information that could help you navigate through the specific requirements by state.<\/p>\n\n\n\n