According to a recent study by the Insurance Research Council, 12.6% of motorists nationwide drove uninsured in 2019.1 However, two states in the U.S. stand out as exceptions to the rule, allowing drivers to legally hit the road without insurance.
Here are the places where you can legally drive without auto insurance – and why it might not be the best idea.
Virginia’s Uninsured Motor Vehicle Fee
Virginia is one of the two states that offer drivers a legal alternative to traditional auto insurance. Instead of purchasing a policy, motorists can pay a $500 annual Uninsured Motor Vehicle (UMV) Fee directly to the state. (ref)
This fee allows drivers to operate their vehicles without insurance coverage, but it comes with a significant catch.
Paying the UMV Fee does not provide insurance protection. In the event of an accident, drivers who opt for this alternative are still personally liable for any damages or injuries they cause.
A single at-fault accident could result in tens of thousands of dollars in out-of-pocket expenses, far exceeding the $500 annual fee.
Financial Risks for Uninsured Drivers
Uninsured drivers in Virginia who cause accidents face substantial financial burdens. They are responsible for covering all related costs, including:
- Medical expenses for injured parties
- Vehicle repair or replacement costs
- Legal fees and potential lawsuit settlements
These expenses can quickly add up without insurance, leading to overwhelming debt and long-term financial strain.
Legal Consequences
In addition to the financial risks, uninsured drivers in Virginia may face legal consequences for causing accidents. Depending on the severity of the incident, they could be subject to:
- Fines and penalties
- License suspension
- Jail time in extreme cases
Drivers who cause accidents while uninsured may also struggle to obtain affordable auto insurance in the future, as insurers often view them as high-risk.
New Hampshire’s Financial Responsibility Requirements
New Hampshire, the other state that allows drivers to forgo auto insurance legally, takes a slightly different approach. While the state does not mandate auto insurance, it does require drivers to demonstrate financial responsibility in the event of an accident. (ref)
To prove financial responsibility, New Hampshire drivers must either:
- Purchase auto insurance or
- Deposit money or securities with the state treasury
The required amount varies depending on the driver’s history and the severity of any past accidents. Failure to demonstrate financial responsibility can result in license suspension and other penalties.
The Bottom Line
While Virginia and New Hampshire offer legal alternatives to traditional auto insurance, driving without coverage is risky.
The potential financial consequences of an at-fault accident can be devastating for uninsured drivers, far outweighing any short-term savings on insurance premiums.
For most drivers, purchasing auto insurance remains the safest and most responsible choice to protect themselves and others on the road.
So, the next time you’re tempted to drive without auto insurance, remember the risks and consider the long-term implications.
Proper coverage can provide peace of mind and financial security, ensuring you’re prepared for whatever the open road may bring.
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Nancy Maffia
Nancy received a bachelor’s in biology from Elmira College and a master’s degree in horticulture and communications from the University of Kentucky. Worked in plant taxonomy at the University of Florida and the L. H. Bailey Hortorium at Cornell University, and wrote and edited gardening books at Rodale Press in Emmaus, PA. Her interests are plant identification, gardening, hiking, and reading.
