Can I self insure my car?

I’ve owned a vehicle and been insured my entire adult life (coming up on the big 5-0 this year) and never once have I gotten a ticket or had to file a claim. At this point, I feel like having to pay for insurance each month is just a waste of money. I know my state requires car insurance but is there a way I can self insure my car?

Yes, you may be able to self insure your car but it varies on a state-by-state basis. Also, that is quite an impressive driving record!
It makes sense that you feel like paying for car insurance through an insurance company is a waste of money, but before looking to self insure, you should make sure you are getting the best deal for your current car insurance. Using a comparison and shopping app like Jerry is a great way to compare car insurance quotes from up to 50+ different insurance companies and they will even help cancel your current policy.
Typically, to self insure your vehicle rather than having traditional car insurance, you must contact the DMV and purchase a surety bond or pay a cash deposit. However, some states may require you to have more than 25 vehicles in your name. Additionally, the bond or cash deposit can be pretty expensive and ranges from $10,000 to $160,000 or more. Nevertheless, self-insurance can be right for you if you:
  • Own a lot of cars
  • Have enough money to cover injuries and damage in an at-fault accident
  • Live in a state where it is permitted.
If you live in one of the following states and own multiple vehicles, but less than 25, you may be eligible to self insure your car:
  • Alaska
  • Maryland
  • Connecticut
  • New Mexico
  • Georgia
  • North Dakota
  • Hawaii
  • Pennsylvania
  • Indiana
  • Vermont
It should also be noted that self-insuring your car(s) only offers you liability coverage so, if you need more coverage options, typical car insurance still may be your best option.
Congratulations again, your driving record is something to be proud of!
Jack Walsh
Answered on Oct 22, 2021

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