No! Auto liability insurance is required in almost every state. If you have financed your car, your lender may require comprehensive and collision (coverage for damage to your vehicle) insurance as part of the loan agreement. If you have leased your vehicle you will be required to carry liability coverage as well as comprehensive and collision.

Even if your state is one of the few that does not require auto insurance, all states have financial responsibility laws. These laws require that all drivers demonstrate the ability to cover their liability if they are involved in a motor vehicle accident.

A Certificate of Insurance, Certificate of Self-insurance, Surety Bond or Certificate of Deposit are typically all acceptable forms of proving financial responsibility. If you can not meet the states financial responsibility requirements, you must purchase insurance.

Penalties for driving without insurance differ from state to state, and include license suspension/revocation, fines ranging from $75 to $5000 and up to 12 months in jail.

In some states, your license plates and registration receipt can be seized and your car impounded. Additionally, you can be held legally responsible for damage or injuries you cause.

This article adapted from information provided by the Insurance Information Institute