Alternatives to Car Insurance: Surety Bonds [2024]
Many states allow you to purchase alternatives to car insurance, such as surety bonds, for around $100 annually. While bonded car insurance can be hard to find, it’s an affordable option. Learn about the benefits of surety bonds for car insurance and find the best alternative car insurance company below.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
UPDATED: Oct 21, 2024
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UPDATED: Oct 21, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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Alternatives to car insurance, such as surety bonds, may be available in your area, but are they right for you? Most people opt to meet state minimum car insurance requirements. However, you can get car insurance alternatives in many states, including surety bonds, to pay for repairs without going through car insurance.
Surety bonds, proof of financial responsibility without a traditional car insurance policy, are expensive, but they could be the best choice if you can’t find cheap car insurance elsewhere. With surety bonds, your surety company pays for accident expenses up to the amount, but you’ll have to pay it back over time with interest.
So, can I have a bond instead of car insurance? We’ll help you find car insurance requirements in your state below. Keep reading to learn more about whether your state allows surety bonds instead of a car insurance policy, the benefits of auto insurance alternatives, and alternative car insurance requirements.
Before deciding on surety bonds, compare free bond insurance quotes today from the top companies by entering your ZIP code into our comparison tool above.
- Nationwide, Liberty Mutual, and Travelers offer surety bonds as a valid alternative to car insurance coverage, averaging $100 annually
- Only certain states allow this alternative to car insurance, and cost generally depends on bond amount and your credit
- You’ll have to pay back a surety bond with interest over time after your alternative car insurance company pays for accident costs
Surety Bonds and Alternatives to Car Insurance: What You Need to Know
Ideally, an alternative way to insure yourself is through surety bonds. Doing this lets you avoid purchasing a standard car insurance policy from an ordinary insurance company. Is a surety bond the same as car insurance? It’s not the same, but it’s a valid alternative.
Learn more about the various types of car insurance alternatives, including surety bonds, here:
- Surety bonds: There are many types of surety bonds for car insurance. With a surety bond, you agree to pay for others’ accident costs out of pocket, avoiding the need for liability car insurance. However, your surety company will pay the cost of damages up to your car insurance bond amount, which you’ll have to pay back over time with interest.
- Uninsured motorist fee: In Virginia and South Carolina, you can pay an annual uninsured motorist fee to avoid getting insurance. Instead, you’ll pay out of pocket for accident expenses. We recommend you consider traditional or bonded car insurance, as it’s usually cheaper than the fee.
- Self-insurance: Some states allow self-insurance, where you have enough money to pay for accidents, damages, or liabilities you cause and assume that financial responsibility.
- Liability-only: A liability-only policy offers cheaper rates than full coverage and allows you to meet car insurance requirements.
- Pay-per-mile insurance: A pay-per-mile car insurance policy allows you to pay a monthly base rate and per-mile rate for coverage. This policy is great for drivers looking for low-mileage car insurance.
Keep reading to learn more about the best companies for alternative car insurance and the difference between surety bonds vs. car insurance coverage.
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Exploring Alternatives to Auto Insurance: Surety Bonds in California
When considering an alternative to auto insurance, a surety bond for auto insurance in California stands out as a viable option. California auto insurance with a surety bond allows drivers to meet state financial responsibility requirements without purchasing traditional car insurance.
Opting for a bond for car insurance can be especially beneficial for those seeking the cheapest car to get insured and bonded, as surety bond rates can sometimes be lower than conventional insurance premiums. Companies like Geico, USAA, and Progressive offer various surety bonds for auto insurance, providing a broad spectrum of options for California drivers.
Choosing the Right Surety Bond Provider
Selecting the right provider for your surety bond for car insurance is crucial. Insurance companies that do bonds, such as Allstate and Geico, offer competitive bonding insurance rates. To find the best fit, it’s advisable to compare insurance bonds from different providers.
For example, a Geico surety bond might offer distinct advantages over a USAA surety bond, depending on your specific needs. Additionally, Progressive’s surety bonds might cater to a different set of requirements, making it essential to evaluate each option.
When considering a surety bond vs. insurance, it’s important to understand the differences in coverage and financial responsibility to make an informed decision.
Alternatives to Car Ownership and Insurance
Beyond traditional car insurance and ownership, there are numerous alternatives to explore. Alternatives to owning a car, such as car-sharing services or public transportation, can significantly reduce the need for comprehensive insurance coverage.
Additionally, auto alternatives like bicycles or electric scooters provide eco-friendly transportation options that eliminate the need for a surety bond or conventional insurance. For those seeking an alternative to buying a car, leasing or subscribing to a car service can offer flexibility without the long-term commitment.
Exploring alternatives to auto insurance, such as pay-per-mile insurance or using a surety bond in place of auto insurance, can also provide cost-effective solutions for drivers looking to minimize expenses.
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Exploring Surety Bonds and Other Insurance Alternatives
When exploring the landscape of California auto insurance with surety bonds, it’s essential to understand the benefits and considerations of this unique option. Surety bonds provide a valid alternative to traditional car insurance policies, allowing drivers to meet financial responsibility requirements in a cost-effective manner.
Providers like Geico offer surety bonds, which can be particularly appealing for those seeking a cheap alternative to car insurance. By opting for a surety bond with Geico or Progressive, drivers can secure comprehensive coverage that safeguards against liabilities and ensures legal compliance.
For those considering surety bonds for vehicles, it’s crucial to compare offerings from different providers. Allstate surety bonds, for instance, present another viable option, catering to various financial situations and coverage needs.
Whether you’re looking for bonded auto insurance or a more specialized surety comprehensive insurance plan, companies like USAA and Geico can provide tailored solutions. Additionally, exploring cheap bond insurance from providers such as Hugo can further enhance your ability to secure affordable and effective coverage.
Beyond surety bonds, there are numerous alternatives to traditional car insurance and ownership. Alternatives to AAA, for example, can offer competitive roadside assistance and other benefits. For those exploring alternatives to buying a car, options like car-sharing services or public transportation present practical and eco-friendly solutions.
Additionally, for individuals seeking a first alternative car insurance or a Geico alternative, considering providers like USAA, Progressive, or even looking into alternatives to performance bonds can yield substantial savings and benefits.
By evaluating these varied options, drivers can make informed decisions that best fit their financial and insurance needs.
Top Companies Offering Surety Bonds and Other Car Insurance Alternatives
Some of the top companies that sell surety bonds instead of car insurance are Nationwide, Liberty Mutual, and Travelers car insurance. You could also save up to 40% on car insurance if you opt for pay-per-mile car insurance. Metromile, Esurance, Nationwide, Allstate, Hugo, Mile Auto, and USAA all offer alternative car insurance by the mile.
Read More:
- Allstate Car Insurance Review
- USAA Car Insurance Review
- Esurance by Allstate
- How to Get a Metromile Car Insurance Quote Online
Always compare quotes from the top companies and consider whether these alternatives to car insurance would work for you.
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Difference Between Surety Bonds and Car Insurance
The main difference between surety bonds and car insurance is the amount of risk you’re willing to take.
A car insurance policy pays for damages up to its specified limits. So, your only out-of-pocket cost is the deductible, usually $500 or $1,000.
Meanwhile, surety bonds place financial responsibility for all accident damages on you. Your alternative car insurance company pays the charges upfront and you’ll repay the amount over time with interest.
Another difference is that the amount you’d pay upfront for the bond is usually cheaper than car insurance premiums.
The last major difference is the way bonds and insurance get priced. Alternative car insurance companies set surety bond prices based on your financial situation. There are many factors that affect car insurance rates, including driving record, location, age, gender, and car type.
States That Allow Alternatives to Car Insurance
Not all states allow surety bonds as a car insurance alternative.
Before deciding to purchase a bond instead of insurance, research whether surety bonds are available in your state. Once you've confirmed this fact, consider shopping with various alternative car insurance companies to find the best one for you.
Laura D. Adams Insurance & Finance Analyst
However, if you live in a state allowing them, you can buy a bond instead of insurance for the same amount as the minimum insurance requirements in your state.
Additionally, you can also pay down a payment to the DMV for the same cash equivalent as insurance coverage. However, surety bonds are still most likely a better option because you pay only a percentage of the amount rather than the face value.
This table shows you the states that allow surety bonds and the amounts required:
Surety Bond Car Insurance Requirements by State
| State | Requirement |
|---|---|
| Alabama | $50,000 |
| Alaska | $50,000 |
| Arizona | $40,000 |
| Arkansas | $40,000 |
| California | $35,000 |
| Colorado | $35,000 |
| Connecticut | $40,000 |
| Delaware | $40,000 |
| District of Columbia | $50,000 |
| Florida | $40,000 |
| Georgia | $35,000 |
| Hawaii | $40,000 |
| Idaho | $50,000 |
| Illinois | $45,000 |
| Indiana | $40,000 |
| Iowa | $55,000 |
| Kansas | $50,000 |
| Kentucky | $40,000 |
| Louisiana | $55,000 |
| Maine | $127,000 |
| Maryland | $75,000 |
| Massachusetts | $10,000 |
| Michigan | $50,000 |
| Minnesota | $55,000 |
| Mississippi | $15,000 |
| Missouri | $60,000 |
| Montana | $55,000 |
| Nebraska | $75,000 |
| Nevada | $55,000 |
| New Hampshire | $45,000 |
| New Jersey | $50,000 |
| New Mexico | $60,000 |
| New York | $25,000 |
| North Carolina | $85,000 |
| North Dakota | $50,000 |
| Ohio | $30,000 |
| Oklahoma | $75,000 |
| Oregon | $50,000 |
| Pennsylvania | $45,000 |
| Rhode Island | $75,000 |
| South Carolina | $35,000 |
| South Dakota | $25,000 |
| Tennessee | $60,000 |
| Texas | $55,000 |
| Utah | $160,000 |
| Vermont | $115,000 |
| Virginia | $50,000 |
| Washington | $60,000 |
| West Virginia | $45,000 |
| Wisconsin | $60,000 |
| Wyoming | $25,000 |
If you find the right bond insurance company for you, make arrangements with one of the company’s sales representatives to complete the necessary paperwork and payments to secure the bond. Once secured, the surety company provides proof of payment for the bond, which must be carried in the vehicle at all times.
Surety bonds aren’t allowed everywhere, so research if your state allows them.
Cost of Surety Bond Car Insurance Alternatives
Surety bond auto insurance cost depends on your credit score and the company you choose. According to the National Association of Surety Bond Producers, surety bonds of $7,500 can cost you anywhere from $100 to $1,000, depending on your credit score.
Check out the table below to see how much your bond insurance quote could be:
Surety Bond Car Insurance Cost by Credit Score
| Credit Score | $5,000 Bond | $10,000 Bond | $25,000 Bond | $50,000 Bond | $100,000 Bond |
|---|---|---|---|---|---|
| 700 | $100 | $100 | $188- $375 | $375- $750 | $750- $1,500 |
| 650-699 | $100 | $100-$300 | $250-$750 | $500-$1,500 | $1,000-$3,000 |
| 600-649 | $125-$250 | $250-$500 | $625-$1,250 | $1,250-$2,500 | $2,500-$5,000 |
| 550-599 | $250-$375 | $500-$750 | $1,250-$1,875 | $2,500-$3,750 | $5,000-$7,500 |
| Under 550 | $375-$500 | $750-$1,000 | $1,875-$2,500 | $3,750-$5,000 | $7,500-$10,000 |
Of course, a lower credit score will cost you more money since surety companies consider financial situation. The higher your credit score, the better the surety bond price.
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When It’s Smart to Buy Alternative Car Insurance
There are many instances where getting a bond instead of insurance for you and your vehicle might be best. Consider getting an auto insurance bond rather than traditional coverage if you’re a:
- High-risk driver: Drivers who need high-risk car insurance pay higher rates. So, it might be worthwhile to consider surety bonds for high-risk drivers. If SR-22 car insurance is too expensive, you might even find an alternative car insurance company offering an SR-22 bond.
- Driver with a suspended or revoked license: Some states may require drivers with suspended or revoked licenses to pay reinstatement fees. So, shopping with alternative car insurance companies could help you find cheap coverage.
- Driver with a no-insurance violation: Drivers who allow their coverage to lapse or got caught driving without insurance may need to prove financial responsibility to the state. SR-22 car insurance might be too expensive in this case, so consider a surety bond instead of car insurance.
In sum, a surety bond can sometimes be cheaper than traditional car insurance, and you don’t pay a car insurance deductible. It also protects against liability issues. However, your credit history determines how much you’ll pay for a surety bond.
In addition, if you don’t own a car, you may need a personal umbrella policy.
Who Shouldn’t Buy Surety Bonds for Car Insurance
On the other hand, it might be best to opt for traditional car insurance instead of a bond in certain scenarios. It’s usually best to get standard auto insurance if you:
- Drive safe: The best car insurance companies give savings to drivers with clean driving records. So, you might find lower costs with regular car insurance vs. surety bonds.
- Have cheap insurance: Of course, if you already have affordable auto insurance coverage, you should stick with traditional coverage and instead shop around for cheaper insurance rates.
Every driver’s situation is different, so compare prices for surety bonds vs. car insurance to see which car insurance coverage type is best for you.
Alternatives to Car Insurance for Businesses
In several states, a vehicle insurance bond isn’t available. Instead, individuals must rely on standard auto insurance or pay a cash deposit to the Department of Motor Vehicles. However, business owners can utilize surety bonds, although each state has its own rules and requirements for this type of financial security.
For example, according to Washington state’s Department of Licensing, the business must own at least 26 vehicles and have a $60,000 deposit ready to qualify for a surety bond. Your state’s Department of Motor Vehicles can provide specific and additional details concerning this issue.
Every individual should consider whether alternative car insurance — such as surety bonds — is a better choice than ordinary car insurance.
Purchasing a car insurance policy is certainly the most popular option, as it’s simple and convenient. However, you might consider purchasing a surety bond instead if the insurance quotes you get are too expensive or if you can’t get a regular policy for some other reason.
Businesses with a fleet of vehicles may want to think carefully about their choices, but buying a surety bond is generally more economical in the long run than paying for commercial car insurance.
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Requirements for Alternative Car Insurance Coverage
In addition to the requirements for surety bonds, alternatives auto insurance options have certain requirements depending on your location. For example, most states allowing self-insurance require you to prove you have enough money to cover potential damages and injuries.
Virginia and South Carolina allow you to pay an uninsured motorist fee, usually around $500 annually, to avoid getting insurance. However, you’ll still pay out of pocket for expenses.
You can also get just a liability car insurance policy for cheaper rates than full coverage. Check out the table below to compare liability insurance requirements by state:
Liability Car Insurance Requirements by State
| State | Coverages | Limits |
|---|---|---|
| Alaska | BI & PD Liability | 25/50/25 |
| Alabama | BI & PD Liability | 50/100/25 |
| Arkansas | BI & PD Liability | 15/30/10 |
| Arizona | BI & PD Liability, PIP | 25/50/25 |
| California | BI & PD Liability | 15/30/5 |
| Colorado | BI & PD Liability | 25/50/15 |
| Connecticut | BI & PD Liability, UM, UIM | 25/50/20 |
| District of Columbia | BI & PD Liability, PIP | 25/50/10 |
| Delaware | BI & PD Liability, UM | 25/50/10 |
| Florida | PD Liability, PIP | 10/20/10 |
| Georgia | BI & PD Liability | 25/50/25 |
| Hawaii | BI & PD Liability, PIP | 20/40/10 |
| Iowa | BI & PD Liability | 25/50/15 |
| Idaho | BI & PD Liability, UM, UIM | 25/50/20 |
| Illinois | BI & PD Liability | 25/50/25 |
| Indiana | BI & PD Liability | 20/40/15 |
| Kansas | BI & PD Liability, PIP | 25/50/25 |
| Kentucky | BI & PD Liability, PIP, UM, UIM | 25/50/25 |
| Louisiana | BI & PD Liability | 15/30/25 |
| Massachusetts | BI & PD Liability, UM, UIM, Medpay | 50/100/25 |
| Maryland | BI & PD Liability, PIP, UM, UIM | 30/60/15 |
| Maine | BI & PD Liability, PIP | 20/40/5 |
| Michigan | BI & PD Liability, PIP | 20/40/10 |
| Minnesota | BI & PD Liability, PIP, UM, UIM | 30/60/10 |
| Missouri | BI & PD Liability | 25/50/25 |
| Mississippi | BI & PD Liability, UM | 25/50/25 |
| Montana | BI & PD Liability | 25/50/20 |
| North Carolina | BI & PD Liability, UM, UIM | 25/50/25 |
| North Dakota | BI & PD Liability | 25/50/20 |
| Nebraska | FR only | 25/50/25 |
| New Hampshire | BI & PD Liability, PIP, UM, UIM | 15/30/5 |
| New Jersey | BI & PD Liability | 25/50/10 |
| New Mexico | BI & PD Liability, PIP, UM, UIM | 25/50/10 |
| Nevada | BI & PD Liability, UM, UIM | 30/60/25 |
| New York | BI & PD Liability, PIP, UM, UIM | 25/50/25 |
| Ohio | BI & PD Liability | 25/50/25 |
| Oklahoma | BI & PD Liability | 25/50/25 |
| Oregon | BI & PD Liability, PIP, UM, UIM | 25/50/20 |
| Pennsylvania | BI & PD Liability, PIP | 15/30/5 |
| Rhode Island | BI & PD Liability | 25/50/25 |
| South Carolina | BI & PD Liability, UM, UIM | 25/50/25 |
| South Dakota | BI & PD Liability, UM, UIM | 25/50/25 |
| Tennessee | BI & PD Liability | 25/50/15 |
| Texas | BI & PD Liability, PIP | 30/60/25 |
| Utah | BI & PD Liability, PIP | 25/65/15 |
| Virginia | BI & PD Liability, UM, UIM | 25/50/10 |
| Vermont | BI & PD Liability, UM, UIM | 25/50/20 |
| Washington | BI & PD Liability | 25/50/10 |
| Wisconsin | BI & PD Liability, UM, UIM | 25/50/25 |
| West Virginia | BI & PD Liability, UM, Medpay | 25/50/10 |
| Wyoming | BI & PD Liability | 25/50/20 |
So, what vehicles are exempt from car insurance requirements? You don’t need car insurance if you have a surety bond or paid an uninsured motorist fee to your state.
Shop around for different types of surety bonds and car insurance alternatives to find the best policy for your needs.
Penalties for Driving Without Car Insurance or Surety Bonds
Driving without car insurance is illegal in most states. Check out the table below to compare penalties for driving without car insurance or surety bonds by state:
Driving Without Car Insurance: 1st Offense Penalties by State
State Penalty
Alabama Fine: Up to $500; registration suspension with $200 reinstatement fee
Alaska License suspension for 90 days
Arizona Fine: $500 (or more); license/registration/license plate suspension for three months
Arkansas Fine: $50 to $250; suspended registration/no plates until proof of coverage plus $20 reinstatement fee; court may order impoundment
California Fine: $100-$200 plus penalty assessments. Court may order impoundment
Colorado Fine: $500 minimum fine; 4 points against your license; license suspension until you can show proof to the DMV that you are insured. Courts may add up to 40 hours community service
Connecticut Fine: $100-$1000; suspended registration/license for one month (show proof of insurance) with $175 reinstatement fee
Delaware Fine: $1500 minimum fine; license/privilege suspension for six months
Florida Suspension of license and registration until reinstatement fee is paid and non-cancelable coverage is secured; $150 fee for first reinstatement
Georgia Suspended registration with $25 lapse fee and $60 reinstatement fee. Pay any other registration fees and vehicle ad valorem taxes due
Hawaii Fine: $500 fine or community service granted by judge. Either license suspension for three months or a required nonrefundable insurance policy in force for six months
Idaho Fine: $75; license suspension until financial proof. No reinstatement fee.
Illinois Fine: minimum of $500; License plate suspension until $100 reinstatement fee and insurance proof
Indiana License/registration suspension for 90 days to one year
Iowa Fine: $500 if in accident; Otherwise, fine: $250; community service in lieu of fine. Possible citation/warning if pulled over plus removal of plates and registration possible when pulled over without insurance and reissued upon payment of fine or completed community service, proof of insurance, and $15 fee; possible impoundment when pulled over
Kansas Fine: $300 to $1000 and/or confinement in jail up to six months; license/registration suspension; reinstatement fee: $100
Kentucky Fine: $500 to $1000 fine and/or sentenced up to 90 days in jail; license plates and registration revoked for one year or until proof of insurance is shown
Louisiana Fine: $500 to $1000; If in car accident, fine plus registration revoked and driving privileges suspended for 180 days
Maine Fine: $100 to $500; suspension of license and registration until proof of insurance
Maryland Lose license plates and vehicle registration privileges; pay uninsured motorist penalty fees for each lapse of insurance — $150 for the first 30 days, $7 for each day thereafter; Pay a restoration fee of up to $25 for a vehicle's registration
Massachusetts Fine: $500 to $5000 fine and/or imprisonment for one year or less
Michigan Fine: $200 to $500 fine and/or imprisonment for one year or less; license suspension for 30 days or until proof of insurance; $25 service fee to Secretary of State
Minnesota Fine: $200 to $1000 (or community service) and/or imprisonment for up to 90 days; License and registration revoked for no more than 12 months
Mississippi Fine: $1000; driving privileges suspended for one year or until proof of insurance
Missouri Four points against driving record; driver may be supervised; suspended until proof of insurance with $20 reinstatement fee
Montana Fine: $250 to $500 fine and/or imprisonment for no more than 10 days
Nebraska License and registration suspension; reinstatement fee of $50 for each; proof of insurance to remain on file for three years
Nevada Fine: $250 to $1,000 depending on length of lapse; registration suspension — until payment of reinstatement fee and, depending on circumstances, an SR-22 (proof of financial responsiblity) if lapsed more than 90 days; reinstatement fee: $250
New Hampshire Not a mandatory insurance state. Proof of insurance may be required as the result of a conviction, crash involvement, or administrative action. If you are required to file proof of insurance and vehicles are registered in your name, you will be required to file an Owner’s SR-22 Certificate of Insurance.
New Jersey Fine: $300 to $1000; license suspension for one year; pay surcharges for three years in the amount of $250 per year
New Mexico Fine: up to $300 and/or imprisoned for 90 days; license suspension
New York Fine: up to $1500 if involved in accident plus $750 civil penalty; license and registration suspension – revoked for one year; suspension of license if without
insurance for 90 days; suspension lasts as long as registration suspension; Suspension of registration: equal to time without insurance or pays $8/day up to thirty days for which financial security was not in effect, $10/day from the thirty-first to the sixtieth day $12/day from the sixtieth to the ninetieth day and proof of security is provided. Or for the same time as the vehicle was operated without insurance.
North Carolina Fine: $50; registration suspension until proof of financial responsibility but 30-day suspension if in car accident or knowingly driving without insurance; $50 restoration fee plus license plate fee
North Dakota Fine: up to $1500 and/or 30 days in prison; 14 points against license plus suspension; Proof of insurance must be provided for one year; license with a
notation requiring that person keep proof of liability insurance on file with the department. The fee for this license is $50, and the fee to remove
this notation is $50.
Ohio License/plates/registration suspension until requirements are met and $100 reinstatement fee is paid; maintain special high-risk coverage on file with the BMV for three to five years; If involved in accident without insurance: all above penalties and a security suspension for two plus years and an indefinite judgment suspension (until all damages are satisfied)
Oklahoma Fine: $250; jail time up to 30 days; license suspension with $275 reinstatement fee. Police can seize license plates and assign temporary plates and liability insurance — in effect for 10 days and can also impound the vehicle. The cost of the temporary coverage is added to the administrative fee and any fines paid for plates to be returned. If car impounded, owner must also pay towing and storage fees.
Oregon Fine: $130-$1000 ($260 is the presumptive fine); If involved in accident — at least a one year license suspension; proof of financial responsibility required for three years
Pennsylvania Registration suspended for three months (unless lapse was for less than 31 days and vehicle not operated during that time); $88 restoration fee plus proof of insurance required to get it back; $500 civil penalty fee is optional in lieu of registration suspension plus $88 restoration fee — can only use this option once within a 12-month period
Rhode Island Fine: $100 to $500; license and registration suspension up to three months; reinstatement fee: $30 to $50
South Carolina Fine: $100-$200 or 30-day imprisonment; failure to surrender registration and plates when insurance lapses; license/registration suspended until proof of insurance plus $200 reinstatement fee
South Dakota Fine: $100 and/or 30 days imprisonment; license suspension for 30 days to one year; filing proof of insurance (SR-22) with the state for three years from date of conviction. Failure to file proof will result in suspension of vehicle registration, license plates, and driver license.
Tennessee Pay $25 coverage failure fee within 30 days of notice; if not paid, then an additional $100 coverage failure fee with suspension or revocation of registration plus reinstatement fee of no more than $25
Texas Fine: $175 to $350 fine; plus, pay up to a $250 surcharge every year for three years (may be reduced with certain requirements)
Utah Fine: $400; license suspension until proof of insurance (maintained for three years) and $100 reinstatement fee
Vermont Fine: up to $500; license suspended until proof of insurance
Virginia Fine: may pay $500 Uninsured Motorists Vehicle fee to drive without insurance at your own risk. If this fee is not paid in lieu of insurance, all driving and vehicle registration privileges will be suspended until a $500 statutory fee is paid, proof of insurance is filed for three years, and a reinstatement fee (if applicable) is paid
Washington Fine: Up to $250 or more
West Virginia Fine: $200 to $5000; license suspended for 30 days with reinstatement fees, unless there's proof of insurance and $200 penalty fee
Wisconsin Fine: up to $500
Wyoming Fine: up to $750 fine and up to six months in jail
As you can see, you could face fines, license suspension, or jail time for driving without surety bonds or insurance.
Case Studies: Surety Bonds as an Alternative to Car Insurance
Case Study 1: John’s Affordable Coverage
John, a responsible driver with a clean record, struggled to afford the high premiums of traditional car insurance. After researching alternatives, he discovered surety bonds as a viable auto insurance alternative in his state. By opting for a surety bond, John could secure affordable alternative insurance coverage starting at $100, which provided him with financial protection while meeting his state’s legal requirements.
Case Study 2: Lisa’s Financial Stability
Lisa, a cautious driver with a poor credit score, faced difficulties obtaining affordable car insurance due to the impact of her credit history. However, she learned that surety bonds consider financial stability rather than credit score when determining pricing. By opting for a surety bond, Lisa secured alternative car insurance coverage at a reasonable cost, considering her financial situation.
Case Study 3: James’ Fleet of Vehicles
James owned a business with a fleet of vehicles and needed insurance coverage for his entire operation. While traditional commercial car insurance was an option, James explored using surety bonds instead of car insurance.
After considering the requirements and costs, James determined that surety bonds were a more cost-effective solution for his business, providing adequate protection while saving on insurance expenses.
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More About Surety Bond and Other Car Insurance Alternatives
A surety bond is similar to a car insurance policy. It protects against loss due to theft, fire, vandalism, etc. There are various types of surety bonds: some cover just one vehicle, while others protect fleets of cars. You should always check with your local DMV when considering any surety bond. They can help you determine which types of surety bonds for car insurance best suits your situation.
Make sure you know your options before you buy alternative car insurance. Before deciding whether a surety bond is for you, compare alternative car insurance rates from multiple companies by entering your ZIP code below.
Frequently Asked Questions
Is there an alternative to car insurance?
Yes, there are various car insurance alternatives to choose from. For example, you could get a surety bond that costs a percentage of the bond amount, but you’ll have to pay it back over time with interest if you need to use it. You could also consider pay-per-mile insurance if you don’t drive often.
How do I get a car insurance surety bond?
Contact an alternative car insurance company offering surety bonds, such as Nationwide, Liberty Mutual, and Travelers, to buy one.
How do surety bonds work as an alternative to car insurance?
Surety bonds pay for accident costs up to its maximum limit. However, you’ll have to pay back surety bonds over time with interest.
Why would you purchase an alternative to car insurance?
You might need to consider auto insurance alternatives if you’re having trouble getting standard coverage. For example, surety bonds for high-risk drivers are great if they can’t find a cheap policy elsewhere.
Are surety bonds a good alternative to traditional car insurance?
Surety bonds are a great alternative to car insurance if you can afford to pay out of pocket for accident expenses and can’t find traditional coverage.
When is a surety bond required for car insurance?
You might need to get an SR-22 bond if you’re a high-risk driver who needs to prove financial responsibility to a court.
What are the advantages of surety bond car insurance?
Surety bonds are usually cheaper than traditional car insurance premiums.
What are the disadvantages of surety bond car insurance?
If you have to make a claim on your surety bond, you must pay for all accident expenses out of pocket over time with interest.
What affects the cost of surety bond car insurance?
Generally, companies consider credit rating and the bond amount when determining how much you’ll pay for surety bonds.
Are alternatives to car insurance, such as surety bonds, refundable?
Surety bonds are usually not refundable.
Is a surety bond the same as car insurance?
No, a surety bond is not the same as car insurance, but it is a valid alternative. Surety bonds are a way to insure yourself without purchasing a standard car insurance policy from an ordinary insurance company.
What’s the difference between surety bonds and car insurance?
The main difference is the amount of risk you are willing to take. With car insurance, damages are covered up to the policy limits, and you only pay the deductible. With a surety bond, you are responsible for all damages and must pay the entire amount out of pocket. Surety bonds are priced based on financial stability, while car insurance rates are primarily based on driving record and location.
Where can I use a bond instead of car insurance?
Surety bonds are not available in all states. You would need to research if surety bonds are an option in your state. Some states allow you to purchase a bond for the same amount as the minimum insurance coverage required by law.
How much does a car insurance bond cost?
The cost of a car insurance bond depends on your credit score and the surety bond company you choose. Bonds of $7,500 can range from $100 to $1,000, with lower credit scores resulting in higher costs.
Why would someone need a surety bond for car insurance?
The most common reason for purchasing car insurance is to protect your financial assets. Car insurance compensates the injured party if an accident is your fault. Without insurance, you would be personally responsible for all damages and could risk losing your valuable possessions.
Can you have a bond instead of car insurance?
Yes, in some states, you can opt for a surety bond instead of traditional car insurance to fulfill financial responsibility requirements.
What are some substitutes for buying a new car?
Alternatives to purchasing a new car include leasing, car-sharing services, public transportation, and alternative transportation modes like bicycles or electric scooters.
Is there an alternative to car insurance?
Yes, alternatives to traditional car insurance include surety bonds, self-insurance (where permissible), pay-per-mile insurance, and paying an uninsured motorist fee (in select states).
Does AAA do surety bonds?
AAA primarily offers roadside assistance and traditional auto insurance policies but does not typically offer surety bonds as an alternative.
Does Geico do surety bonds?
Yes, Geico offers surety bonds as an alternative to traditional car insurance policies in some states.
Does Progressive do surety bonds?
Yes, Progressive provides surety bonds as an alternative to traditional car insurance, catering to drivers looking for alternative financial responsibility options.
Does USAA do surety bonds?
Yes, USAA offers surety bonds as an alternative to traditional car insurance, providing options for its members to meet state financial responsibility requirements.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
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