If you live in the United States of America, chances are auto insurance is part of everyday life, at least for car owners. Driving a car is a privilege which comes with some sorts of responsibilities in the form of auto insurance policies. Proof of insurance is basically an indicator that you are willing to take responsibility of your driving and you care about other drivers’ safety and welfare. Most states in the country make auto insurance compulsory; similar to a driver license; you must be an auto insurance policyholder to be considered legal driver. There are, however, several states where auto insurance is not state-mandated for requirements including New Hampshire, Wisconsin, and California.
Since 2010, residents of New Hampshire are no longer required to purchase auto insurance. This regulation is applicable to any driver who has not been involved in a road accident, convicted of DWI (driving while intoxicated), or convicted of any serious traffic violation. However, if you are involved in any road accident, you have to be responsible for covering damages both for bodily or property injuries. If you cannot fulfill this responsibility, the state will probably revoke your driver license. In other words, your responsibility is required only in the event of accident; you don’t have to pay premium fee, but you need to cover all the damages for the injured party when required.
There is no compulsory law requiring drivers to purchase auto insurance in Wisconsin, but the state does require you to prove responsibility is some other ways. You can do this by placing a cash deposit of $60,000 with the WisDOT (Wisconsin Department of Transportation) as liability insurance for vehicles or filing a bond with the department. If in any case, a police officer stops you while you are driving, the officer will check to determine if you have any of those.
California has similar regulations to those of Wisconsin. Drivers can prove their responsibility not by purchasing insurance but simply covering for damages in which case they are at fault in road accidents. The compensation can reach up to $30,000 for injury or death in a single accident. For property damage, the compensation can reach up to $5,000. Since you don’t have to purchase insurance, you have placed a deposit of $35,000 or file a bond of that amount with California Department of Motor Vehicles.
Although insurance is indeed not compulsory in some states, drivers are still required to be responsible and prove it by covering damages of the injured party in the event of accidents. Proof of financial responsibility can be done by placing deposit or filing bond with the state.
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