Proof of Insurance

Proof of insurance is just what it says it is proof of some sort, which indicates you meet your state’s minimum liability insurance requirements.

After you establish an insurance policy, the company will likely send you proof of insurance or you may be able to get a copy online. Some states require you have proof of insurance before you can register a vehicle while others have electronic reporting where by the insurance company contact’s the DMV directly. In any event, you should always keep your proof of insurance in your with you at all times.

While each state has its own set of liability minimum requirements, they all demand you prove you’re financially responsible. If you decide not to buy car insurance, you have a couple of other options you might be able to explore:

  • Cash Deposit – You can place a large cash deposit, typically between $25,000 and $100,000, with your state’s DMV or treasurer.
  • Surety Bond – The other popular option is to secure a surety bond with a state-authorized surety company.

If you elect to go this route, you will need to carry a certificate of your or deposit wherever you go. This will function as your proof of financial responsibility.

If you are caught driving without proof of insurance or proof of financial responsibility, or if you are in an accident and don’t have the necessary or enough coverage, you could face fines, registration and/or license suspension, and even jail time.