Which states do not require drivers to carry liability insurance?

New Hampshire is the only state that does not require all drivers to carry auto insurance. Only those drivers who have been convicted of serious driving violations, such as driving under the influence, must purchase liability coverage.

Other states vary in how much liability coverage they require drivers to buy, but generally the limits are low. For instance, if you live in Arizona, the minimum liability limits are 15/30/10, or $15,000 for injury liability for one person in an accident, $30,000 for all injuries in one accident and $10,000 for property damage in an accident.

[Let Insure.com help you find affordable car insurance now.]

Other minimum auto insurance requirements

In states with no-fault auto insurance laws, drivers are also required to purchase personal injury protection (PIP) coverage, which covers medical expenses for their injuries and those of their passengers. No-fault laws allow policyholders to recover money for medical treatment caused by car accident injuries from their own insurance companies--no matter who was at fault for the accident. No-fault laws also limit when drivers can sue for pain and suffering. The states with no-fault laws are:

1. Florida
2. Hawaii
3. Kansas
4. Kentucky
5. Massachusetts
6. Michigan
7. Minnesota
8. New Jersey
9. New York
10. North Dakota
11. Pennsylvania
12. Utah

In addition, some states also require drivers to carry uninsured motorist coverage, which covers medical expenses for car accident injuries if you're hit by an uninsured driver.

Penalties for driving without insurance vary widely among states, and include fines, license suspension and even jail time. But insurance industry insiders say states are lax in enforcing the laws.

For more, see minimum levels of car insurance you are required to buy and the penalties for driving uninsured--and why they may be meaningless.