All states have laws that set the minimum amounts of insurance or other financial security that drivers have to pay for the harm caused by their negligence behind the wheel if an accident occurs. The public generally supports compulsory auto insurance and wants these laws enforced.Liability insurance is compulsory in 48 states and the District of Columbia. Only New Hampshire and Wisconsin do not have compulsory auto insurance liability laws.

Laws in most states have proven ineffective in reducing the number of drivers who are uninsured. There are many reasons for this. Some drivers can’t afford insurance and some drivers with surcharges for accidents or serious traffic violations don’t want to pay the high premiums that result from a poor driving record. With the percentage of uninsured motorists close to 30 percent in some states, it is costly to track down violators of compulsory insurance laws. And unless the odds of getting caught are high and the penalties severe, drivers will continue to flout the law.

A handful of states have passed laws and begun to develop and implement online auto insurance verification systems to identify uninsured motorists. These systems require insurers to maintain up-to-date databases of insured motorists that can be accessed by law enforcement officers instantly when motorists are stopped for traffic infractions.