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Why You Can Trust the MarketWatch Guides Team
Here’s a breakdown of how we reviewed and rated the top auto insurance providers
130
Providers ReviewedOur team looked at over 100 of the top auto insurance providers in the U.S., from national providers like USAA, Travelers and State Farm to regional providers like Erie Insurance.
8,500
Data Points AnalyzedTo properly score each auto insurance provider, we looked at cost data, claims processes, customer review scores, industry standing, available discounts, coverages and add-ons.
800
Research HoursOur team put in the time so you don’t have to, evaluating cost data, reading customer reviews and researching companies to determine the most reliable options for coverage.
8,500
Customers SurveyedWe asked thousands of customers to describe their experience with their auto insurance provider to understand how real customers feel about their insurers.
Learn more about our methodology and editorial guidelines.
Is Car Insurance Required?
Car insurance is required in every state with the exception of Virginia and New Hampshire. In these states, the car insurance requirement can be waived if you are able to provide proof of financial responsibility. This means that you have enough assets to pay for a certain amount of damage should you be sued after a car accident that you cause.
Do I Need Insurance to Drive Someone Else’s Car?
Car insurance is tied to the vehicle, not the individual. This means that if you have permission to drive someone else’s car, that person’s insurance will cover any accident that may occur. If you live in the same household as the person whose car you borrow, you may need to be listed on that person’s insurance policy.
Do I Need Insurance for a Rental Car?
Most rental car companies provide the state minimum insurance with their rental vehicles. You are not required to purchase extra insurance, but it could be a good idea if you don’t already have coverage through your regular auto insurance policy (or another source like your credit card company).
State minimum requirements typically only include coverage for other parties’ damages after an accident you cause, not your own car. This means that you’ll be on the hook for repair or replacement costs for the rental if you don’t have extra insurance. Keep in mind that your personal auto policy still applies in most cases when you are driving a rental car.
State Penalties for Driving without Insurance
The penalty for driving without insurance is different in each state. The table below describes penalties for first-time offenses by state. Some state governments will even imprison people for driving without insurance.
| State | Fine for First Offense | Additional Penalties for First Offense | Jail Time |
| Alabama | $500 | Registration suspension until $200 reinstatement fee is paid | None |
| Alaska | $500 | License suspension for 90 days | None |
| Arizona | $500 | License and registration suspension for 90 days | None |
| Arkansas | $50 | Registration suspension until $20 reinstatement fee is paid | Up to one year |
| California | $100 | None | None |
| Colorado | $500 | License suspension until proof of insurance is provided | None |
| Connecticut | $100 | License and registration suspension for six months | Up to five years |
| Delaware | $1,500 | License suspension for six months | None |
| District of Columbia | $150 | License suspension for 30 days | None |
| Florida | $150 | License and registration suspension up to three years | None |
| Georgia | $85 | License and registration suspension for 60 days | Up to one year |
| Hawaii | $500 | License suspension until proof of insurance is provided | None |
| Idaho | $75 | None | None |
| Illinois | $500 | License suspension up to three months | None |
| Indiana | $250 | License suspension up to 90 days | None |
| Iowa | $250 | None | None |
| Kansas | $300 | License and registration suspension until proof of insurance is provided | Up to six months |
| Kentucky | $500 | Registration suspension up to one year | Up to 90 days |
| Louisiana | $500 | None | None |
| Maine | $100 | License and registration suspension until proof of insurance is provided | None |
| Maryland | $1,000 | None | Up to one year |
| Massachusetts | $500 | License and registration suspension for 60 days | Up to one year |
| Michigan | $200 | License suspension up to 30 days | Up to one year |
| Minnesota | $200 | License and registration suspension up to 30 days | None |
| Mississippi | $500 | License suspension up to one year | None |
| Missouri | $20 | License suspension until proof of insurance is provided | None |
| Montana | $250 | None | None |
| Nebraska | $100 | License suspension until proof of insurance is provided | None |
| Nevada | $250 | License suspension until proof of insurance is provided | None |
| New Hampshire | $125 | License and registration suspension until proof of insurance is provided | None |
| New Jersey | $300 | License suspension up to one year | None |
| New Mexico | $300 | License and registration suspension until proof of insurance is provided | Up to 90 days |
| New York | $150 | License and registration suspension until proof of insurance is provided | Up to 15 days |
| North Carolina | $50 | License suspension until proof of insurance is provided | None |
| North Dakota | $150 | License suspension until proof of insurance is provided | None |
| Ohio | Varies | License suspension until proof of insurance is provided | None |
| Oklahoma | $250 | License suspension until proof of insurance is provided | Up to 30 days |
| Oregon | $260 | License and registration suspension until proof of insurance is provided | None |
| Pennsylvania | $300 | License and registration suspension for three months | None |
| Rhode Island | $100 | License and registration suspension for three months | None |
| South Carolina | $550 | License suspension for 30 days | None |
| South Dakota | $100 | License suspension up to one year | Up to 30 days |
| Tennessee | $25 | License suspension until proof of insurance is provided | None |
| Texas | $175 | None | None |
| Utah | $400 | License suspension until proof of insurance is provided | None |
| Vermont | $250 | License suspension until proof of insurance is provided | None |
| Virginia | $500 | License suspension until proof of insurance is provided | None |
| Washington | $550 | None | None |
| West Virginia | $200 | License suspension up to 30 days | Up to one year |
| Wisconsin | $500 | None | None |
| Wyoming | $250 | License suspension until proof of insurance is provided | Up to six months |
Fines and penalties for subsequent offenses can be higher and include additional jail time in some states. There are also often reinstatement fees to be paid to get your license and registration re-validated.
Minimum Car Insurance Requirements by State
As with penalties for driving without insurance, car insurance requirements vary by state. Some require very little coverage, while others require more comprehensive policies.
The most common types of required insurance coverage are bodily injury liability, property damage liability, personal injury protection (PIP) and uninsured motorist coverage.
Liability car insurance limits are often written as a series of three numbers, which represent the limits for each type of coverage. For example, liability limits for car insurance in Texas may be written as 30/60/25. This means that the state requires drivers to hold at least:
- $30,000 in bodily injury liability coverage per person
- $60,000 in bodily injury liability coverage per accident
- $25,000 in property damage liability coverage per accident
If you want cheap car insurance, you may consider only purchasing your state’s minimum required coverage. However, keep in mind that if an accident you cause results in damage that exceeds these limits, you’ll have to pay the difference out of pocket. Also, liability insurance only covers other parties’ damaged property and medical bills. If you want coverage for your own vehicle, you’ll need to buy collision insurance.
Driving without Insurance: The Bottom Line
Unless you live in a state that does not require it, driving without insurance is not a good idea. If you’re caught, you face a number of serious consequences that can include the revocation of your driving privileges, large fines and jail time.
Our Recommendations for Car Insurance
If you’re in the market for a new insurance policy, you’ll want to secure the best possible rates. Because car insurance costs can vary by individual, there is no single best provider for every driver. That’s why the only way to find the right policy for you is to shop around and compare offers. Use the tool above to compare free car insurance quotes from several top providers in your area.
Erie: Best Basic Insurance Coverage
Erie is one of the best-known insurers in the country, and for good reason. The company offers affordable basic insurance paired with high-quality customer service. Erie offers the six standard types of auto insurance, which include liability, collision, comprehensive, uninsured/underinsured motorist, medical payments and personal injury protection. Additionally, Erie offers the following add-on coverage options:
- Emergency roadside service
- Rental car reimbursem*nt
- Trip interruption
- New car replacement
- Accident forgiveness
- Rideshare insurance
Read more: Erie insurance reviews
USAA: Best for Military Members
USAA is another well-known provider. If you or a family member are apart of the military, this is the provider for you. While it doesn’t have quite the list of coverage options that Erie does, it is still a great and affordable choice for many drivers.
In addition to the standard types of auto insurance, USAA offers:
- Emergency roadside assistance
- Rental car reimbursem*nt
- Loan/lease payoff (also called gap insurance)
- Custom parts and equipment value coverage
- Rideshare insurance
Read more: USAA insurance reviews
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Driving without Insurance: FAQ
In every state — except for Virginia and New Hampshire — drivers are required to carry some form of auto insurance. If you get caught driving without insurance in state that requires it, you can be subject to large fines, the cancellation of your license or car registration and even jail time.
The consequences of driving without insurance vary from state to state. Depending on where you live, you could see six to eight penalty points applied to your license.
Many states consider driving without coverage a misdemeanor. Depending on the classification, you’ll have to pay fines and may even have to spend some time in jail. Repeat offenders may see longer jail sentences and much higher fines.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.
