Proof of Insurance

In most states you are legally required to have car insurance. If you are pulled over by an officer of the law for any reason, you need to provide proof of insurance at that time, or you will face penalties such as fines, license suspension, and even jail time.

Most importantly, if you are in an accident, you will need insurance if you are found at fault. If you do not have insurance, you will most likely have to pay for the damages sustained by the other person’s car, as well as for any medical bills that person might have as a result. If the person you hit is seriously injured, you could end up paying for a lifetime physical therapy. In short, if you don’t have insurance, you will face financial ruin.

In order to drive, you need to have proof of financial responsibility. For every state, there are different laws regarding the amount of liability insurance you need to carry. Most people show proof of financial responsibility via an insurance policy, although some may also post a bond or deposit. There are two ways you can show financial responsibility outside of purchasing auto insurance, and they include:

• Surety Bond: A driver secures this bond through the state.

• Cash Deposit: A driver places a cash deposit of up to $100,000 with the state treasurer or DMV.

If you choose to use a surety bond or a cash deposit, you must carry a certificate proving this with you while you are driving—at all times. This is your “proof” of insurance.

In order to drive, you must carry insurance. You must also have proof of insurance to purchase a new vehicle, or to register a vehicle.
If you are involved in an accident and are unable to provide proof of insurance, you may face steep penalties like fines, suspension of registration and license suspension. Not to mention possible time in jail. Ask yourself, is it worth it? A few minutes online is all it takes to compare quotes from different car insurance companies, and you can find cheap car insurance today.