Although the details vary from state to state.
A part that is sometimes missed is the source of the legally required financial coverage ( insurance ).
Technically in most places, paying ( monthly unending fees ) to a 3rd party insurance company ( Progressive or whoever ) is not the only legal option.
If you do the bond or cash deposit option. The con is the up front cost. The Pro is that it's a set finite sum of money. And , you can often cash it out if you latter cancel the policy ( getting most if not all of the initial invested funds back , maybe even some interest it earned over the years ).
Alternative Car Insurance | eHow
One of my professors in college said he took out a loan in order to get the start up funds needed for the required bond. He claimed the cost for the interest payments on the loan was less than what it would eventually cost him to pay an insurance company. He also repeated often how much he liked the idea of still owning the bond and being able to get his money back if he ever stopped driving and canceled the coverage.
On the other hand. It effectively means all payments come from you one way or the other. If it would have been your insurance companies $5k to fix the car ( or it was totaled ) now it's all your $5k. There would be no outside 3rd party to give you any money. So I guess it depends on the risk of accident frequency.
I can't afford a bond / deposit option at this time , or I'd do it.