General Discussion
In reply to the discussion: Want my support for the ACA? Repeal the mandate. [View all]Xithras
(16,191 posts)There isn't a federal law requiring it.
No U.S. states require it for vehicles operated on private roadways.
Two U.S. states still have no laws requiring it at all.
Many U.S. states have laws allowing people to opt out if they chose. Here in California, a lot of people with good credit scores simply get surety bonds or deposit accounts instead of insurance. It does mean that you're responsible for fixing your own car if you get in an accident, but it eliminates the monthly payout to the auto insurer, which many see as "burning money". The bond issuers want money as well, but it's nearly always cheaper than insurance. The truly wealthy don't need either of those, but can simply drop $35k in to a deposit account and file it with the DMV. That demonstrates "financial responsibility" under state law, and removes the requirement that they buy anything at all.
I carried a $35k bond on my cars for years without insurance. It cost me about $1000 a year (which was cheaper than insurance, considering the fact that I had two teenagers in the house and both my wife and I had points), and I only stopped doing it when my finances got hit and my FICO score dropped, which tripled the surety percentage the bondholder wanted.