Auto Insurance Forum

Do you know of a bond that allows you to drive any car without auto insurance? Is this a certain kind of insurance?

Lacie, California

Dear Lacie,

In California, you are required by law to buy liability insurance, which pays for property damage and medical expenses to a third party if you were in an accident. The only states in which you can show "financial responsibility" and not buy liability insurance are New Hampshire, Tennessee, and Wisconsin.

In these states, showing financial responsibility means showing the state Department of Insurance that you have enough resources to pay for the damages in an accident if you caused one. You can show financial responsibility by purchasing a bond from any licensed surety company or insurer. This will take the place of a liability insurance policy.

For more information, read Minimum levels of required auto insurance.

Back to the Forum

Disclaimer: We are journalists, not financial planners or insurance brokers. Nothing we say should be interpreted as a recommendation to buy or sell any insurance product, or to provide other financial or legal advice.