In this way, they’re still covered. Just consider it self-insured status.
California is not the only state in the union which offers this option for drivers without insurance, but it certainly is the largest. New Hampshire, Iowa, Tennessee, Washington, Texas and Ohio also offer a “work-around” for uninsured motorists.
Regardless of whether or not your state allows you to circumvent having motor vehicle insurance, they will still require that are prepared to pay for any eventualities in the result of a vehicle crash. So, make certain you brush up on your state’s law before you decide to forgo insurance.
In layman’s terms, you can legally “bribe” your way out of insurance payments by cutting states a big fat check.
Drivers in California can skirt the law by forking over $35,000 in cash to the DMV or posting a surety bond in the same amount. It’s a little bit cheaper in Ohio, where residents pay $30,000 to the DMV or state treasurer for the privilege.
And some states don’t require drivers to pay for insurance at all.
In New Hampshire and Iowa, auto insurance isn’t compulsory. In the latter, you can buy a car without proof of insurance. But in order to get away with driving uninsured, you’ll have to cut the state a check or post a bond worth $55,000.