Driving without auto insurance is against the law in 48 out of 50 in the United States. All states have laws on the books mandating, or at least strongly recommending, that drivers carry vehicle insurance. However, two states, Wisconsin and New Hampshire only require motorists to stipulate they have enough money to take financial responsibility in the event of an accident. According to the experts, driving without car insurance poses a threat to the other motorists on the road, as well as to yourself.
One accident has the potential to financially wipe out an individual or family, causing them to lose everything, up to and including their house. While mandating or recommending auto insurance, not all states require drivers to show proof of insurance during a routine traffic stop. Auto insurance may be required, but only in the event of an accident. The rule of thought behind this is that the government has no right to penalize a citizen for a crime that has not been committed.
Most states demand that motorists carry proof of insurance and proof of vehicle ownership and registration, in the glove compartment of the car. Failure to produce these documents can get you jailed on the spot and your license and registration suspended down the road, along with heavy fines being levied. That is in addition to what you may be faulted for, if you caused the accident. For this reason, most drivers choose to buy liability auto insurance in case of an accident. Liability insurance covers damages to the other driver and his or her vehicle.
Studies have shown that drivers who drive without insurance do so because they cannot afford the auto insurance premiums, not because they are so wealthy that they can absorb any cost. The big question at the end of the day is how much insurance does anyone need? Well, that is always left to the individual motorist, but you never really know how much you need until you get into an accident and by then it is too late.