Be Prepared to Show Proof of Car Insurance
The majority of states require that motorists are financially responsible for expenses which may arise from the result of traffic accidents; while every states law differs, more and more are requiring that vehicle operators have the ability to prove that they have compensation in place following a collision. Although some states mandate that motorists have coverage to pay for personal injury (commonly referred to as No Fault states) and other states will require coverage for injuries caused to others (Bodily Injury Protection), the fact of the matter is that proof of auto insurance will need to be provided under many different circumstances.
Financial responsibility laws are taken very seriously and are intended to make sure that if a person is injured in an accident they will receive some sort of compensation whether it is from their own carrier or the insurer of another party; these laws are also in place to help keep uninsured motorists from utilizing the roadways illegally. The necessity to show proof of insurance is pretty similar across the nation; motorists will likely be required to provide documentation when requested by law enforcement, when renewing or registering an automobile or following a traffic collision.
Certain states have also taken it a step further; in California, beginning in 2006, insurers licensed to issue policies became required by law to electronically notify the Department of Motor Vehicles of private-use vehicle information; if an insurer notifies the department of a cancellation in coverage an automobile’s registration may be suspended.