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Can I drive legally without insurance?

NO! Almost every state requires you to have auto liability insurance. All states also have financial responsibility laws. This means that even in a state that does not require liability insurance, you need to have sufficient assets to pay claims if you cause an accident. If you don�t have enough assets, you must purchase at least the state minimum amount of insurance. But insurance exists to protect your assets. Trying to see how little you can get by with can be very shortsighted and dangerous.

If you've financed your car, your lender may require comprehensive and collision insurance as part of the loan agreement.

Below is an example of the state minimum limits for auto liability insurance. The first number refers to liability limits for bodily injury for any one person, the second to limits for all persons injured, and the third refers to property damage liability limits. For example, 20/40/10 means coverage up to $40,000 for all persons injured in an accident, subject to a limit of $20,000 for one individual and $10,000 coverage for property damage.

State	Liability limits (1)	State	Liability limits (1)	State	Liability limits (1)
Alabama	20/40/10	Kentucky	25/50/10	North Dakota	25/50/25
Alaska	50/100/25	Louisiana	10/20/10	Ohio	12.5/25/7.5
Arizona	15/30/10	Maine	50/100/25	Oklahoma	10/20/10
Arkansas	25/50/25	Maryland	20/40/15	Oregon	25/50/10
California (2)	15/30/5	Massachusetts	20/40/5	Pennsylvania	15/30/5
Colorado	25/50/15	Michigan	20/40/10	Rhode Island	25/50/25
Connecticut	20/40/10	Minnesota	30/60/10	South Carolina	15/30/10
Delaware	15/30/5	Mississippi	10/20/5	South Dakota	25/50/25
D.C.	25/50/10	Missouri	25/50/10	Tennessee (7)	25/50/10
Florida (3)	10/20/10	Montana	25/50/10	Texas	20/40/15
Georgia	25/50/25	Nebraska	25/50/25	Utah	25/50/15
Hawaii	20/40/10	Nevada	15/30/10	Vermont	25/50/10
Idaho	25/50/15	New Hampshire (4)	25/50/25	Virginia	25/50/20
Illinois	20/40/15	New Jersey (5)	15/30/5	Washington	25/50/10
Indiana	25/50/10	New Mexico	25/50/10	West Virginia	20/40/10
Iowa	20/40/15	New York (6)	25/50/10	Wisconsin (4)	25/50/10
Kansas	25/50/10	North Carolina	30/60/25	Wyoming	25/50/20
(1) The first two figures refer to bodily injury liability and the third figure to property damage liability. For example, 20/40/10 means coverage up to $40,000 for all persons injured in an accident, subject to a limit of $20,000 for one individual, and $10,000 coverage for property damage. (2) Low-cost policy limits for Los Angeles and San Francisco low-income drivers in the California Automobile Assigned Risk Plan are 10/20/3. This is a pilot program effective from July 1, 2000 until January 1, 2004. (3) Only property damage liability is compulsory. (4) Liability insurance not compulsory; limits are for financial responsibility. (5) Drivers may choose a Standard or Basic Policy. Basic Policy limits are 10/10/5. (6) 50/100 if injury results in death. (7) Although legally defined as financial responsibility, Tennessee's law is similar to a compulsory law because drivers can be fined if stopped by police or after crashes if they cannot show proof of financial responsibility. Source: Alliance of American Insurers; American Insurance Association; National Association of Independent Insurers; Insurance Information Institute.

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Source: Insurance Information Institute

For more in-depth information on auto, health, home and life insurance, visit Insurance Information Institute

These questions and answers are provided for IowaMotors.com users' general information. Although we make every effort to insure accuracy in the information provided, we cannot make any guarantees as to this accuracy. We urge you to consult your lawyer, accountant or tax advisor for specific legal or tax advice.

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