Can you pay the DMV instead of carrying car insurance?

I read that some states allow you to pay the DMV instead of buying car insurance. Is this true?

Answer
“There are states that allow you to pay a surety bond to the DMV instead of carrying the required minimum car insurance coverage.
For example, in California, you can pay the DMV $35,000. However, with this surety bond, any damages or injuries that exceed the $35,000 would come out of your own pocket and you would be responsible for all costs stemming from the accident.
Depending on how you finance your surety bond, you may be responsible for paying back any money that the DMV or another company fronts for you.
While this may seem like an easier option than paying for car insurance, you’ll want to consider whether $35,000 is enough coverage. Accidents costs can add up and you may end up paying more out of pocket than with a traditional insurance policy.
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Emily Maracle
Answered on May 17, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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