I'm aware that it's possible to make your own car insurance company. That being said, does anyone know of the absolute, cheapest possible car insurance there can be? I'm not concerned at all about quality (I don't "buy into" (literally) the whole car insurance scam at all, I believe that if someone gets in a wreck, that's not up to the government to take care of -- its a personal matter. If it's an issue for the other driver, he can sue him personally instead, I Don't believe the government should be giving us forced "advice" on how to live), I just want to find the absolute minimum requirement that follows the law and allows one to drive a car on the road. Is there any insurance for $1 / month? If not, is it possible to make one's own car insurance company and charge $1 month? What's the absolute minimum (again, I'm not concerned at all with quality, only want to satisfy the bare minimum of the law)>

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    Making a car insurance company requires actually having considerable financial backing to pay out claims. You should check if your territory allows posting of a bond, some places allow you to post a bond of $10,000 to $1,000,000 to prove you can pay for claims in lieu of having insurance.
    – Vality
    Apr 29, 2019 at 20:37
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    It is possible to create your own car insurance company in the same way that it is possible to become an astronaut. It has been done many times but it isn't a quick or easy process. There is basically 0 chance that you could start a new insurance company that would meet the legal requirements for less than it would cost to buy the minimum policy in your state from any existing insurance company. Any existing company will tell you what they would charge for the minimum coverage your state requires-- which company will be cheapest will likely depend on your risk profile. Apr 29, 2019 at 20:39

1 Answer 1


I think you may have a fundamental misunderstanding of how insurance works and the value of it (assuming you are in the US). The Government doesn't pay out insurance claims from private insurers. It is also decidedly not a scam, but rather a way to buy down financial risk.

Every state has guidelines for the minimum level of insurance you must carry to drive a vehicle, and that usually is just enough to cover the other party in an accident if you are at fault (called "liability insurance). Any insurance company would know those limits, and you can ask them for a plan that meets the legal minimums. I suggest just getting quotes on that across multiple companies. Also, if you have a loan on your car, the bank will probably require more than the minimum coverage.

There should be no reason to "Create a car insurance company", but you can buy a bond or self-insure in some situations which basically means showing that you have the resources to cover a bit liability claim. Again this will vary from state to state.

My overall advice would be to research the ins-and-outs of auto insurance, for most non-wealthy people it is extremely important to protect against financial loss.

Addendum: Technically, in most states, you just need to show financial responsibility to protect other drivers in case you cause an accident. You can sometimes do this with a surety bond instead of insurance which may be a bit cheaper, but in the event of an accident you are out a lot more money with this scheme (source).

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    – JohnFx
    May 1, 2019 at 3:44

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