Legal and regulatory insurance rules
NC, SC, Texas and Louisiana won't issue a licence without proof of insurance or a no-vehicle statement. SC and Louisiana check renewals too.
Every state requires insurance to drive on a temporary tag, but only some check first. Virginia names temporary plates in its uninsured-driving offence.
The FAA requires no insurance for crop dusting; states do, from $25,000 in Kansas to $400,000 in Colorado. Florida and Oklahoma require drift cover, Colorado doesn't.
Minnesota requires $300,000 and Pennsylvania $50,000 once a dog is declared dangerous. Ohio joined the mandate states in March 2026, and the common "14 states" list is wrong.
Only California, Florida, Hawaii and Washington regulate travel sellers — with bonds, trust accounts and a restitution fund. Florida's bond can vanish after five clean years.
Minnesota requires $1,000,000 and that the certificate state on its face that the policy covers escort work — so a correct limit on generic paperwork still fails.
48 states shield stables from ordinary-negligence claims under an Equine Activity Liability Act, but none of them require insurance, and California and Maryland offer no such statute at all.
CBP's $50,000-minimum customs bond belongs to the importer, not the broker — brokers are licensed under exam and character review, with no federal insurance mandate at all.
No law mandates builders risk insurance, but construction lenders almost universally require it as a loan condition — and FHA 203(k) loans carry their own HUD-guideline requirement.
Freight brokers must post a $75,000 FMCSA bond or trust fund — not liability insurance — under 49 CFR 387.307, and confusing the two costs new brokers money.
California requires residential care facilities for the elderly to carry $1M/$3M liability, with no small-home exemption; Washington adult family homes need two $500K/$1M policies.
The federal health insurance penalty is $0, but California, Massachusetts, New Jersey, Rhode Island, and D.C. still fine residents for going uninsured. See each state's 2026 penalty amount, exemptions, and how the mandates actually work.
No state requires GAP insurance, but New York and Virginia regulate how GAP waivers are sold. Learn who actually needs coverage, what happens without it, and how dealership GAP compares to standalone policies.
Flood insurance becomes mandatory when a building in a FEMA Special Flood Hazard Area secures a loan from a federally regulated lender — for at least the loan balance or the NFIP maximum. See NFIP limits, private flood rules, and when lenders must force-place coverage.
No state requires homeowners insurance, but mortgage lenders do: Fannie Mae calls for replacement-cost coverage with a deductible of no more than 5%. See when a servicer can force-place insurance, and where flood coverage adds a federal mandate.
Festivals, fairs, and farmers markets require $1M-$2M general liability naming the event as additional insured before setup — and selling alcohol usually needs separate liquor liability, which permits like Seattle's set at $2M.
FAA Part 107 governs airspace authorization, not liability — commercial drone operators typically need $500K-$1M in aviation-specific liability coverage required by clients and property owners, not the FAA.
The SCRA does not exempt service members from state minimum auto insurance — the registration state's limits still apply during a PCS move, and deployment does not automatically suspend the requirement.
No U.S. state mandates personal umbrella insurance — but landlords, contractors, and commercial tenants face contractual and municipal requirements that effectively require $1M–$5M in umbrella coverage above their standard policies.
Personal injury protection (PIP) is mandatory in 12 no-fault states with minimums ranging from $3,000 in Utah to $50,000 in New York — and Michigan reformed its unlimited PIP system in 2020 with a tiered opt-out structure.
All 50 states require proof of auto insurance at traffic stops — 47+ states accept digital proof on a smartphone. Failure to show proof carries fines of $50–$500, often dismissible when coverage is confirmed.
Non-owner auto insurance is required when an SR-22 or FR-44 filing is mandated and the driver does not own a vehicle — the certificate cannot exist without an underlying policy. Florida's FR-44 requires $100,000/$300,000 liability on a non-owner policy, more than 10 times the state's standard minimum.
Most licensing states require contractor license bonds of $5,000–$25,000 as a condition of licensure. California requires $25,000 (CSLB); Washington requires $12,000 (L&I); federal projects over $150,000 require performance and payment bonds under the Miller Act.
FMCSA requires financial responsibility from $300,000 for for-hire fleets of small vehicles to $5,000,000 for the riskiest hazmat loads — and a for-hire carrier cannot operate without an accepted BMC-91 filing.
A certificate of insurance (COI) proves coverage exists but does not create it — and "additional insured" on a certificate means nothing without an actual policy endorsement. Here's what landlords, GCs, and municipalities require and how to comply.
Georgia has no state law requiring homeowners insurance, but mortgage lenders on FHA, VA, and conventional loans require it. Fannie Mae calls for replacement-cost coverage with a deductible of no more than 5%.
Virginia, Florida, and Massachusetts impose the toughest consequences for uninsured driving — from $5,000 fines to mandatory imprisonment. This ranking compares penalties across all 50 states on fines, suspensions, impoundment, and SR-22 duration.
FR-44 is required in Florida and Virginia after DUI convictions. Learn what coverage is required, how it differs from SR-22, how long you must maintain it, and what it costs.
FMCSA requires $750,000 for for-hire general freight, $1 million for oil and most hazmat, and $5 million for the highest-risk loads and large buses. Learn how the MCS-90 endorsement and the BMC-91 filing work, who is exempt, and the penalties.
SR-22 is a certificate proving you carry required auto insurance. Learn when it's required, how long you need it, costs, and how to file in your state.
Browse insurance requirement guides across other coverage areas
State minimum auto coverage rules
Insurance rules for businesses
Rules for contractors & trades
Professional & general liability rules
Country-specific travel rules
Insurance for motorcycles, boats & more
Side-by-side insurance requirement comparisons
Insurance requirements for delivery & rideshare drivers
SR-22, FR-44, bonding, state filings, federal DOT requirements, and regulatory compliance basics.
All guides are written by the Coverage Criteria editorial team and verified against official government and regulatory sources. We translate complex insurance rules into plain language so you know exactly what coverage is required — without needing a lawyer.
