Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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Here's what you need to know...

  • Car insurance is legally required in almost every state
  • In states where car insurance is not required, financial responsibility must be proven instead
  • There are situations where car insurance may not be necessary
  • If you’re placing your car in storage for an extended period of time, you may not need insurance on your car
  • If you plan to cancel your insurance on your car, then your state may require the vehicle’s registration to be canceled.

Auto insurance is legally required in almost every state, meaning that there are required minimums of coverage that all drivers should carry. However, some individuals may choose to drive without insurance, which can make having your own insurance coverage in force even more important.

Unless you qualify for a particular situation where your car does not need ongoing coverage (these scenarios are incredibly rare), you should have insurance on your car.

If you don’t have coverage currently, don’t hesitate to gather several quotes using our FREE comparison tool above!

You Should Have Insurance Because It’s Legally Required

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For anyone that does not live in New Hampshire, you are legally required to have auto insurance providing liability. New Hampshire, on the other hand, allows you to avoid purchasing insurance if you can meet specific financial responsibility requirements.

In most cases, it is illegal to drive without insurance. If you decide to drive without insurance, there is the possibility of legal repercussions.

Many states require proof of insurance when trying to register a vehicle or renew a vehicle’s registration. Additionally, some states perform random checks where you may be required to bring proof of insurance to your local DMV for verification.

If you’re not sure about your state’s insurance requirements, you can contact your state’s Department of Insurance for more information.

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You Should Have Insurance Because Other Drivers May Not

You may be a responsible driver, but that does not mean that every driver on the road is. According to a study completed by the Insurance Research Council, about one in eight motorists were uninsured in 2014.

You are exposed to a large amount of risk each time you are on the road. One of the best ways to mitigate this risk exposure is by maintaining your own active insurance policy.

In situations where you are involved in an accident with an uninsured driver, having insurance coverage of your own may provide you some coverage. Collision coverage or uninsured motorist coverage are often the types of coverage that may apply, which can help you to avoid a large financial burden.

Your Lender May Require Insurance On Your Car

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While state required levels of insurance provide protection for damages you may cause to others, it rarely covers damages to your own property.

Many lenders, due to this, will require that you have insurance on your vehicle that covers the car itself from any damages — including comprehensive coverage, collision coverage, or glass coverage.

These types of coverage protect your vehicle from damages that could occur due to an accident, theft, weather incident, or other incidents.

This coverage is important to your lender because your car is still their investment until you’ve paid off the loan. If you do not carry the required insurance to protect your vehicle, you may still be financially responsible for any remaining loan payments even if the car cannot be repaired or salvaged.

You May Need Insurance If Your Car Will Be Stored Off-Road

There may be times when you store your car for a longer period than usual, sometimes for months or years before you will be using it again. While this may seem like a low-risk situation, there are times when you may need insurance coverage if your car is off the road.

Storage coverage is an auto policy that offers comprehensive coverage to your car in the unfortunate event of damages not related to a collision. This coverage will protect you from an unexpected expense.

Additionally, maintaining your insurance policy during a period when your car is off road helps you avoid a gap in coverage. Gaps in coverage can make it harder to obtain insurance coverage in the future, as well as higher premium payments. While it may not be necessary to have insurance, it may be easier or more cost-effective in the long run.

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Choosing the Right Amount of Coverage

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Having insurance on your car is a legal requirement in almost every state. Due to this, there are minimum amounts of liability coverage that you must carry to protect the property of others.

also, some drivers may not have insurance coverage or may not have high enough limits of coverage. This means that you may be responsible for protecting yourself from financial risk.

If you have questions about the amount of coverage you need, speak to your insurance provider. Each insurance provider offers different limits of coverage at a different cost, meaning you may need to get several quotes to decide on the ideal provider for your needs.

After speaking with your current provider, we recommend using our FREE comparison tool below to ensure your rates and coverage are competitive!