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.

 

 
 
 
Proof of insurance required (1)
 
 

State
Insurance required (2)
Minimum liability limits (3)
At registration
At time of accident
At all times in vehicle
Insurer verification of insurance (4)
Penalties for non-compliance (first offense)
AL BI & PD Liab 20/40/10 Yes  Yes Yes  None $500 fine, license suspension
AK BI & PD Liab 50/100/25 No No (5) Yes b Registration suspension/revocation (6)
AZ BI & PD Liab 15/30/10 No (7) Yes Yes a,b,d $250 fine
AR BI & PD Liab 25/50/25 Yes No No d $50-$250 fine
CA BI & PD Liab 15/30/5 (8) Yes Yes Yes b $100-$200 fine
CO BI & PD Liab 25/50/15 Yes Yes Yes a,d License suspension, $500 fine
CT BI & PD Liab, UM, UIM 20/40/10 Yes Yes Yes a,d Registration/license suspension/revocation, confiscation of plates, vehicle impoundment, $110-$250 fine
DE BI & PD Liab, PIP 15/30/10 No Yes Yes a,c $1,500-$2,000 fine; six-month license suspension
DC BI & PD Liab, UM 25/50/10 Yes No No a,c $300-$500 fine or maximum 30 days jail
FL PD Liab, PIP 10/20/10 (9) Yes Yes Yes a,d 60-day license revocation, vehicle impoundment for subsequent offense and confiscation of plates in Dade, Broward and Hillsborough counties (6)
GA BI & PD Liab 25/50/25 Yes Yes Yes a 60-day license suspension, registration suspension
HI BI & PD Liab, PIP 20/40/10 No Yes Yes None $1,000 fine
ID BI & PD Liab 25/50/15 No Yes Yes a,c $75 fine
IL BI & PD Liab, UM 20/40/15 Yes Yes Yes a,c $500 fine, 60-day registration suspension (6)
IN BI & PD Liab 25/50/10 Yes Yes No a,b 1-year license and/or registration suspension, $150 reinstatement fee
IA BI & PD Liab 20/40/15 No Yes Yes a $100 fine
KS BI & PD Liab, PIP, UM 25/50/10 Yes No No d $300-$1,000 fine, maximum 6 months jail
KY BI & PD Liab, PIP 25/50/10 Yes Yes Yes d $500-$1,000 fine and/or up to 90 days in jail
LA BI & PD Liab 10/20/10 Yes No (e) Yes a,d $25 fine, up to $500 fine, confiscation of plates (6), vehicle impoundment
ME BI & PD Liab, UM, UIM  50/100/25 (10) No Yes Yes a $100-$500 fine, 30-day license and registration suspension
MD BI & PD Liab, PIP (11), UM 20/40/15 Yes No No a,c up to $1,000 fine and/or 1-year jail
MA BI & PD Liab, PIP, UM 20/40/5 Yes No No a $500 fine (6)
MI BI & PD Liab, PIP 20/40/10 Yes No No a $200 fine (6)
MN BI & PD Liab, PIP, UM, UIM 30/60/10 No Yes Yes c License and/or registration revocation for 6 months (6)
MS BI & PD Liab 25/50/25 No Yes Yes a $500 fine, license and registration suspension
MO BI & PD Liab, UM 25/50/10 Yes Yes Yes a,c License and registration revocation (6)
MT BI & PD Liab 25/50/10 No Yes Yes a $250-$500 fine or not more than 10 days in jail
NE BI & PD Liab 25/50/25 Yes Yes Yes a,d $500 fine (6), license and registration suspension
NV BI & PD Liab 15/30/10 No Yes Yes a,d $100 fine (6)
NH FR only, UM 25/50/25 No No (5) No None None
NJ BI & PD Liab, PIP, UM 15/30/5 (12) No Yes Yes d $300-$1,000 fine, community service, 1-year license suspension
NM BI & PD Liab 25/50/10 Yes No No a,c $100 fine (6)
NY BI & PD Liab, PIP, UM 25/50/10 (13) Yes Yes Yes a,d 1-year license revocation
NC BI & PD Liab 30/60/25 No No No a,d 60-day registration suspension (6)
ND BI & PD Liab, PIP, UM 25/50/25 No No (5) No a $150 fine, registration revocation, license suspension (6)
OH BI & PD Liab 12.5/25/7.5 No Yes Yes a 90-day license suspension, $75 reinstatement fee
OK BI & PD Liab 25/50/25 Yes Yes Yes a Less than $500 fine, less than 6 months jail (6)
OR BI & PD Liab, PIP, UM 25/50/10 No Yes Yes a,c License suspension and/or revocation (6)
PA BI & PD Liab, PIP 15/30/5 No Yes Yes a License and registration suspension, confiscation of plates (6)
RI BI & PD Liab, UM 25/50/25 (9) No No No a,c $100-$500 fine, up to 3 months license/registration suspension
SC BI & PD Liab, UM 15/30/10 Yes Yes Yes a,d $100-$200 fine, less than 30 days jail
SD BI & PD Liab, UM 25/50/25 No Yes Yes a 1-year license suspension (6)
TN FR only 25/50/10 (9) No No Yes (14) a $100 fine
TX BI & PD Liab 20/40/15 Yes Yes * a $175-$350 fine
UT BI & PD Liab, PIP 25/50/15 (9) No Yes Yes a $400 fine
VT BI & PD Liab, UM, UIM 25/50/10 No Yes Yes a Less than $100 fine (6)
VA BI & PD Liab, UM 25/50/20 No No No a,b,c None
WA BI & PD Liab 25/50/10 No No No a $250 fine, community restitution (6)
WV BI & PD Liab, UM 20/40/10 Yes Yes Yes a 30-day license suspension, registration revocation, $200-$5,000 fine
WI FR only, UM 25/50/10 No No No a License and or registration revocation (6)
WY BI & PD Liab 25/50/20 Yes Yes Yes a Up to $750 fine; up to six months in jail
(1) Proof of valid insurance. The form of evidence varies by state and may take the form of an insurance policy, binder, certificate of self-insurance, surety bonds, or certificate of deposit. Many states require insurance identification cards issued by the insurer. Self-certification, where the driver is required to identify the insurer and policy number in writing rather than in person, is not included.
(2) Compulsory Coverages:
BI Liab=Bodily injury liability
PD Liab=Property damage liability
UM=Uninsured motorist
PD=Physical damage
Med=First party (policyholder) medical expenses
UIM=Underinsured motorist
PIP=Personal Injury Protection. Mandatory in no-fault states. Includes medical, rehabilitation, loss of earnings and funeral expenses. In some states PIP includes essential services such as child care.
FR=Financial responsibility only. Insurance not compulsory.
(3) The first two numbers refer to bodily injury liability limits and the third number to property 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.
(4)  a.   Insurer must notify Department of Motor Vehicles or other state agency of cancellation or nonrenewal.
       b.  Insurer must verify financial responsibility or insurance after an accident or arrest.
       c.  Insurer must verify randomly selected insurance policies upon request.
       d.  Insurers must submit entire list of insurance in effect, which may be compared with registrations at a state agency. Also known as a computer data law.
(5)  Insured must provide evidence of insurance at some point after the accident to the Department of Insurance, other state agency, or law enforcement officer. Deadlines vary among the states.
(6) Penalties are provided for in the law but may not be mandatory for first offenses.
(7) Proof of insurance must be presented within 30 days of registration.
(8) Low-cost policy limits for Los Angeles and San Francisco low-income drivers in the California Automobile Assigned Risk Plan are 10/20/3; pilot program effective January 1, 2000 until January 1, 2007.
(9) Instead of policy limits, policyholders can satisfy the requirement with a combined single limit policy. Amounts vary by state.
(10) In addition, policyholders must also carry at least $1,000 for medical payments.
(11) May be waived for the policyholder but is compulsory for passengers.
(12) Basic policy (optional) limits are 10/10/5. Uninsured and underinsured motorist coverge not available under the basic policy but uninsured motorist coverage is required under the standard policy.
(13) In addition, policyholders must have 50/100 for wrongful death coverage.
(14) 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.

*SB 1670, effective September 1, 2005 requires the Texas Department of Insurance to establish a vehicle insurance verification system.

Source: Property Casualty Insurers Association of America; state departments of insurance and motor vehicles.