Drivers must have proof of insurance to register their cars with the Department of Motor Vehicles. Having documented verification of coverage is important because it may be necessary for various reasons while operating the vehicle. If you don’t have the minimum amount of coverage required by the state, you will jeopardize your ability to drive legally. It may also result in civil or criminal penalties.
Every state wants you to prove that you can pay for property damage or medical expenses for injured people if you cause an accident. This concept is often referred to as financial responsibility. Legislators know that a lot of harm can be done to other people while operating a motor vehicle. Laws related to financial responsibility is the legislators’ attempt to ensure that citizens are protected in the event of an accident.
Contact the auto insurer to obtain the necessary documents to verify that you have an active policy. Every driver must have at least the state minimum coverage. As soon as you buy a policy, the insurer can fax or email you a copy of your insurance card. Additional copies of the card will also be mailed to you along with documentation that describes the policy in detail. Carry the card with you at all times and keep a copy in the car.
Some states require insurers to electronically report policy information directly to the Department of Motor Vehicles. If an insurer does not report an active policy, the Department of Motor Vehicles will contact you and request that you provide proof of coverage. When the Department of Motor Vehicles does not receive updated policy information, it may result in a vehicle registration suspension.
There are different times when you need to have proof of coverage. If you are involved in a car accident, you can exchange information with the other party. When a police officer pulls you over for a suspected traffic violation, the police officer will ask to see your insurance card. The Department of Motor Vehicles representative needs to see the policy documentation when the vehicle registration is renewed.
If you don’t have proof of an active policy, you may be fined money. Other consequences include registration and license suspension. The most serious penalties also involve imprisonment. Complying with the financial responsibility requirements within your state will help you avoid legal problems with the Department of Motor Vehicles and the police.
