3 States Where Car Insurance is Not Mandatory, Is It Yours?

Owning a car insurance policy is mostly required in most states in the US. But, you might not have to get car insurance in particular states. Wondering which state is included in this policy? So, in this article, we will discuss states where car insurance is not mandatory. Let’s check out below!

3 States Where Car Insurance is Not Mandatory

Various states in the United States are strict about car insurance for every vehicle or car owner. They also set a certain nominal for specific protection.

But for these states, this is different. The states below exempt vehicle owners in their territories from not having car insurance. So here are the states where car insurance is not mandatory.

1. New Hampshire

The New Hampshire government does not oblige you to own auto insurance. However, you must fulfill the requirements. It applies if you can prove that you meet this state’s minimum financial responsibility requirements. You may suspend New Hampshire driving privileges if you fail to meet these requirements. 

In addition, if you have specific problems on the road, such as uninsured accidental tort, you may be required to purchase insurance.

2. South Carolina

The government in South Carolina allows eligible car owners to register as uninsured drivers after paying an uninsured driver’s fee of $600. Selecting this option will make you liable to pay for any damage or injury you cause to others if you are at fault in an accident.

3. Virginia

This is the best and most beautiful state where car insurance is not mandatory. Residents in Virginia can choose not to purchase liability insurance by paying a $500 uninsured motorist’s fee. 

However, skipping auto insurance means you won’t get any coverage in the event of an accident. If you cause an accident, you will bear the brunt of other people’s losses and property damage.

Reasons We Should Have Car Insurance Even Though It’s Not Mandatory

Even though car insurance is not mandatory, you still need car insurance. You should have car insurance for several reasons, even if it’s not mandatory.

1. Protects Car from the Risk of Accidents

Car theft is one of the most common crimes that can happen to anyone. That’s why you need insurance even though you live in states where car insurance is not mandatory. 

By having car insurance, you can provide extra protection if this disaster occurs. In submitting a lost car claim, you must complete it with CCTV evidence and other evidence is better.

2. Protects in the Accident of Loss due to Theft

Car theft is one of the most common crimes that can happen to anyone. By having car insurance, you can provide extra protection if this disaster occurs. Try to install a dash cam or camera inside your car so that you know whatever happens to your belongings.  

3. Safer and More Comfortable for Car Owners

The next benefit of car insurance is that you, as a car owner, can feel calmer and safer when driving. The insurance company usually covers various costs for damage or unwanted things to your car. So, you don’t have to worry about the high repair costs anymore.

4. Help with Financial Planning

Everyone must have an emergency fund. However, various conditions, such as accidents, breakdowns, and car loss, can eat up all the emergency funds you have prepared. Indeed, you will feel disadvantages, right?

Sudden accidents are sometimes burdensome, especially if you are preparing a budget for different needs. That’s why you need car insurance, even though you live in states where car insurance is not mandatory.

For better protection can be your insurance solution. With car insurance, you can free yourself from extra costs that may have to be incurred at any time. That way, the financial expenses that you have planned will not be disrupted, and your economic conditions will be more prepared.

5. There are Additional Service Features

Insurance is not just a protection and compensation. Some companies offer additional features that are beneficial to you. Some of the service that can be used include a car tow service which is helpful as a precaution against the risk of running out of fuel or punctured tires. 

6. Free from Third-party Liability

Car insurance also means you don’t have to worry about being covered when you have a single accident. However, it’s a different story if you get involved in an accident with another vehicle or person. As the driver, sometimes you have to bear with it. 

Car insurance with a complete package can be your choice because this facility pays for itself and third parties involved in the accident. That way, your burden will decrease.

7. A Good Investment

Car insurance can be the right choice if you plan to save while protecting your assets. The reason is insurance can cover and guarantee investments and function as a means to save. 

In the long term, car insurance can help you keep car prices up to the highest standard. Why? Because various components are cared for and protected from multiple fatal damages. This way, it can affect the selling price if you want to sell the car one day.

How Much Do We Need For Car Insurance? 

The most common minimum limits for auto insurance liability in most states where car insurance is mandatory are the 25:50:25 formula. It breaks down $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for physical damage. 

But, your state’s terms and conditions may be higher or lower. The key to know how much auto insurance you need is knowing your state’s requirements and checking your situation.

You can also visit the government’s official website, especially the Ministry of Transportation, regarding how much insurance is needed. So far, the cheapest insurance amount is $10,000 in Maryland, and the most expensive is $127,000 in Maine. 

To be safer, you should prepare a nominal range of $100,000 for your insurance needs. So, you will get full-coverage insurance for your car and yourself. 

Are You Considering Having Your Car Insurance? 

That is an explanation of states where car insurance is not mandatory. Even though these areas don’t require insurance, having car insurance is also essential so you can protect yourself if an accident should happen. Of course, they can be responsible for accidents involving other people.