The U.S. state legality of self-insured coverage for automobiles is divided into three categories. Certain states allow legal self-insured auto plans for qualified drivers. Some states only allow automobile self-insurance plans for businesses owning a fleet of vehicles. Other U.S. states do not permit any drivers to have self-insured coverage in any form.

Researching a self insured companies list is one viable way to identify the U.S. states where you are allowed to self-insure your car. A car insurance quotes comparison search is another way to find out which states allow self-insurance plans for automobiles.

States Where You Can Self-Insure Your Car

The following ten U.S. states allow some type of self-insurance plan for smaller amounts of vehicles:

  • Alaska.
  • Connecticut.
  • Georgia.
  • Hawaii.
  • Indiana.
  • Maryland.
  • New Mexico.
  • North Dakota.
  • Pennsylvania.
  • Vermont.

Auto insurance companies in thirty-two U.S. states offer competitive car insurance quotes on self-insurance automobile policies when you fund a state-minimum required amount of cash to a secured deposit account or purchase an appropriately high-dollar surety bond. South Dakota allows self-insurance funds to also be placed in securities. 

The majority of these states require you to also own a high number of vehicles, with some states requiring you to own twenty-five cars or more. Utah requires the highest amount of secured money at $160,000. Minnesota requires the least amount of secured money at $15,000.

Alaska and New Hampshire present interesting exceptions to all the other state’s laws in the country. For example, Alaska allows drivers living in low-trafficked areas or who live where land is not connected to any major highways to not purchase car insurance. 

Self-insurance or car insurance is required for all drivers charged with traffic infractions in the most recent five years, however. While New Hampshire does not require its drivers to purchase car insurance, every driver must carry proof of financial responsibility within the automobile  at all times.