Do You Need Insurance to Register a Car? What You Need to Know
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Do you need insurance to register a car? It's a fair question that raises important points about the order of operations when buying or leasing a new car.
The answer, most of the time, is yes. All but seven states require you to produce proof of insurance before you can register your car with the state authority.
Understanding Insurance Requirements for Car Registration
The seven states that do not require you to get insurance before registering a car are Arizona, Mississippi, New Hampshire, North Dakota, Tennessee, Washington, and Wisconsin. Most others require you to show that you have an auto insurance policy that meets the mandatory minimum coverage required by the state. You may even be required to carry an insurance card in addition to a registration card in the vehicle.
In some states, you may self-insure using a cash deposit or bond, proving that you have the money to cover the minimum liability coverage required. New Hampshire is the only state that doesn't ask for liability insurance at all, although it does still require proof from drivers that they could cover the cost of an accident if they were to cause one.
Review the insurance requirements of your state:
Minimum Liability Insurance Explained
Liability coverage is required by most states. This means that you have enough insurance coverage to pay for the other driver's medical bills and vehicle repairs if you cause an accident. Every state sets its own liability minimums, and some may have rules allowing you to show personal financial responsibility rather than an auto insurance policy.
Types of Financial Responsibility
Although not every state requires car insurance, every state does have some form of financial responsibility law. This means that in order to operate a vehicle in the state, you must show that you're able to pay others if you cause an accident. There are a few ways to satisfy financial responsibility laws:
- Car insurance: The most common way to satisfy financial responsibility is by getting a policy that meets legal minimums.
- Self-insurance: Typically reserved for those who own a fleet (25 or more) of vehicles, some states allow you to self-insure individual vehicles. But you'll need to show substantial resources. In California, for instance, you must make a $35,000 cash deposit with the DMV to begin qualifying for self-insurance.
Documentation for Vehicle Registration
The car registration process should be easy, provided you have proof of financial responsibility. Do you need to have insurance to register a car? Not always, but you will typically need the following:
Driver's license
Bill of sale
Proof of insurance or financial responsibility
Car title or signed lease agreement
Proof of passage of any state-required safety or emissions checks
Vehicle information
Registration fee
Completed registration form
Whether you're going for registration renewal and replacement, getting new license plates, or you're registering a new car, the required documentation is similar.
Insurance Status Changes and DMV Notification
An insurance lapse or change of insurers is something the state motor vehicle authority needs to know about. Different states have different rules on notifying the authorities, but usually, both insurance companies and policyholders have some responsibility.
If an insurance policy is not renewed, an insurer must notify the policyholder. If it is reinstated, they must notify the DMV.
If a driver changes their insurance policy or provider, they must complete a registration and title application and mail or bring the new documents to the DMV or equivalent agency.
Can You Register a Car Without Insurance?
The big question: Do you need insurance to register a car? As we've touched on, the answer really depends on where you live. Whether you're renewing your vehicle registration or getting a previously unregistered vehicle up to compliance, there are different insurance requirements in each state.
States That Allow Registration Without Insurance
You can register a car without car insurance in Arizona, Mississippi, New Hampshire, North Dakota, Tennessee, Washington, and Wisconsin. However, as of July 1, 2024, only New Hampshire allows you to drive without car insurance.
However, New Hampshire doesn't allow you to drive without proof of financial responsibility or a driver's license. In New Hampshire, you must provide proof that you can satisfy $25,000 minimum coverage for property damage and bodily injury to or death of one person, plus $50,000 for bodily injury to or death of two or more people.
Previously, Virginia lacked an insurance requirement, as well, but a new law went into effect on July 1, 2024, mandating that all drivers have at least minimum auto insurance coverage.
Risks of Registering Without Insurance
The consequences of registering without insurance vary between states. While you may be tempted to test the system with the convenience of online registration, it's likely not worth it. Depending on the state, you may face fines, registration suspension, license suspension, or even jail time — not to mention the increased insurance premiums you'll have to pay as a newly designated high-risk driver.
Title, License, and Registration: Understanding the Differences
Every driver should know the difference between a title, license, and registration. All three are crucial to demonstrating proof of ownership, proof of insurance, and helping you stay compliant in your state.
- Title: A car title is a legal document that states who owns the vehicle. It's issued by the state government and includes information about the vehicle, owner, and lender/lessor, if applicable.
- License: Your driver's license is a document issued to you that proves you've met the mandatory requirements in order to drive in your state.
- Registration: A registration card is a legal document that confirms that a vehicle is permitted to be driven on public roads.
All three of these documents are essential to drive in any U.S. state, even if car insurance is not required.
Get Your Insurance Quote Today!
Do you need insurance to register a car? Not always. Regardless, it's always a good idea to have car insurance to protect yourself and other drivers. Not only is minimum auto insurance coverage mandatory in most states, but it can also save you significant out-of-pocket costs if you're in a car accident.
That said, car insurance can be complex, and finding the right insurance for you may feel overwhelming. Comparison tools like EverQuote can help you compare quotes and obtain the necessary insurance for your state, saving you a lot of hassle.