How it works
49 states and the District of Columbia require drivers to buy liability insurance. New Hampshire is the exception: its laws do not require you to carry auto insurance, but after an at-fault accident you must be able to meet the state's financial responsibility requirements. If you cannot, your driving privileges may be suspended, and a court could order your assets used to pay for the damage.
Financial responsibility laws are also behind proof filings. After certain violations, such as driving uninsured or a DUI, a state can require your insurer to file a certificate showing you carry the required coverage, such as an SR-22 or, in Florida and Virginia, an FR-44. Driving without the required coverage or proof can lead to license and registration penalties.
Each state sets its own minimums and rules, so check your state's page or its insurance department and DMV.
Related terms
Sources
- NAIC, Glossary of Insurance Terms financial responsibility law definition
- New Hampshire Insurance Department, Automobile Insurance Consumer Frequently Asked Questions no insurance mandate, financial responsibility after an at-fault accident
- Insurance Research Council, Uninsured and Underinsured Motorists: 2017–2023 (press release) as of February 20, 2025
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