Insurance Proof: Must-Have Or Nice-To-Have?

In the United States, drivers are legally required to have automobile liability insurance, and most states also require drivers to carry proof of insurance. This is usually in the form of an insurance ID card, which includes the policy number, effective dates of the policy, vehicle identification number, and some coverage details. It is important to carry proof of insurance at all times when driving, as failure to do so can result in fines or other penalties. While some states allow electronic forms of proof, others, like New Mexico, require a physical card.

When do you need to show proof of insurance?

In the United States, nearly every state requires drivers to have automobile liability insurance to drive a vehicle legally. Most states also require drivers to carry proof that they are covered. This means that you will need to show proof of insurance in the following situations:

• When registering a newly purchased vehicle or renewing your license plate at the DMV. In most states, you will need proof of insurance to register a car. Some states, such as Washington, Wisconsin, Tennessee, North Dakota, Mississippi, and Arizona, require proof of insurance before driving.
• When pulled over by the police. If you are stopped by the police, they can ask to see your proof of insurance, along with your license and registration. In most states, you can show a digital copy of your proof of insurance, except in New Mexico, where officers are not required to accept electronic proof.
• When involved in a car accident. If you are in an accident, you will need to provide proof of insurance to show you have a current insurance policy. It also allows the other party to quickly see how much coverage you have and get contact information.
• When financing a vehicle. If you are financing your vehicle with a car loan, you will need to show proof of insurance to your lender.

It is important to note that failure to show proof of insurance when required can result in fines, tickets, or other penalties, depending on the state.

What does proof of insurance look like?

Proof of insurance can come in several forms, including a physical card, a printout, or a digital document. The most common type of proof of insurance is an auto insurance ID card, which is typically mailed to the policyholder by the insurance company, although some insurers also offer the option of emailing the card to the policyholder to print out or displaying it on a mobile app. The insurance ID card will include relevant information such as the policy number, effective dates, covered vehicle, and policyholder name. The card may also include the insurance company's name and address, the policyholder's name and address, the vehicle description (make, model, and VIN), and the insurance company code.

In addition to the standard proof of insurance, some drivers may need an SR-22 form, also known as a certificate of financial responsibility. This form is typically filed by the insurance company electronically but may sometimes need to be sent through the mail. The SR-22 form is not a separate insurance policy but rather proof that the policyholder meets the state's minimum auto liability requirements.

While most states allow electronic forms of proof of insurance, it is important to note that New Mexico does not require police to accept digital copies during traffic stops. Therefore, it is recommended to keep a physical copy of your proof of insurance in your vehicle, such as in the glove compartment.

What happens if you can't show proof of insurance?

Failing to provide proof of insurance is not the same as driving without insurance. The two are separate offenses, with failure to show proof of auto insurance being less severe. However, if you are pulled over by the police or are involved in an accident, you may need to show proof of insurance. If you are unable to do so, you will be ticketed.

If you are unable to provide proof of insurance, you could face fines or even jail time, depending on the state. You can usually contest a ticket by mailing a copy of your proof of insurance or by attending the court hearing with proof that you were insured on the date the officer pulled you over. While the charges could be dismissed, you may have to pay a fine or court fees.

If you receive a ticket for not providing proof of insurance, make sure you respond to all correspondence. If you fail to do so, some states may revoke or suspend your license and registrations if you can't prove you're insured.

In some states, the law permits dismissal if you provide the court with proof of valid insurance for the citation date. For example, in California, you would owe only a $25 administrative fee. In other states, it's up to the court's discretion to dismiss the charge or find you guilty and fine you for not carrying your insurance card with you.

Typically, failure to provide proof of insurance doesn't go on your driving record or receive DMV points. However, if your state does place it on your record, then your car insurance rates could be affected since insurers typically check a driver's record when their policy is subject to renewal.

How do you get proof of insurance?

Proof of insurance is a document that shows you have an active insurance policy. It is usually in the form of an ID card, provided by your insurer, and includes details such as the name and address of the insurance company, the policy number, effective date, expiration date, and the name of the insured. You can typically obtain proof of insurance from your insurer right after purchasing a policy. Here are some common ways to get your proof of insurance:

By Mail: When you buy a car insurance policy, your insurance company will typically send you a proof of insurance card by mail. This is often the easiest way to get your insurance card, as it requires no additional steps on your part. You can then keep this card in your wallet, or in the glove compartment of your car.

Print it Yourself: If you lose your card or need an additional copy, you can contact your insurance agent or company and ask them to email you a copy of the card. You can then print out the card and store it in your vehicle.

Digital Insurance Card: Many insurance companies, including major providers like Allstate, Geico, State Farm, and Progressive, offer mobile apps that allow you to access your insurance card digitally. This option is convenient as it eliminates the need for a physical card, and you can simply show your proof of insurance on your phone. However, it's important to note that New Mexico is the only state where law enforcement is not required to accept electronic proof of insurance, so it's always good to have a physical copy as a backup.

Through an Online Account: If your insurance company doesn't have a mobile app, you may still be able to access your proof of insurance by logging into your online account on their website. From there, you can usually download and print your insurance card, or save the card image to your phone.

It's important to remember that the requirements and acceptance of digital proof of insurance may vary by state, so it's always a good idea to check with your local Department of Motor Vehicles (DMV) to stay informed about the specific requirements in your state. Additionally, if you have specific forms like SR-22 or FR-44, you may need to contact your insurance company or a customer service representative to obtain them.

What happens if you're in an accident without proof of insurance?

Being in an accident without proof of insurance can be a stressful experience, and it can have serious financial and legal consequences. Here's what you need to do and what to expect if you find yourself in this situation:

What to Do After an Accident Without Insurance

• Stop and stay at the scene: It is crucial to remain at the accident scene and fulfil your legal obligations. Leaving the scene of an accident, especially if someone is injured, can result in criminal hit-and-run charges.
• Call emergency services: If anyone appears to be injured, call for emergency medical assistance immediately.
• Contact law enforcement: Notify local law enforcement and report the accident. They will guide you on the next steps and document the incident.
• Exchange information: Get the names, contact details, and insurance information of everyone involved in the accident, including drivers, passengers, and witnesses.
• Document the accident: Take pictures of the accident scene, the position of the vehicles, and any property damage. Also, make note of any injuries sustained by those involved.
• Avoid admitting fault: Be cautious about what you say at the scene. Do not admit fault or discuss the details of the accident with anyone except the police and your insurance company.

Financial and Legal Consequences of Driving Without Insurance

The consequences of being in an accident without insurance vary depending on whether you are at fault and the state in which the accident occurred. Here are some potential repercussions:

• Repair and replacement costs: If you are at fault, you are typically responsible for the financial burden of repairing or replacing any damaged vehicles or property.
• Medical expenses: If you are at fault and others are injured, you may be liable for their medical expenses.
• Legal fees and lawsuits: If you cannot pay for the damages, the other party may take legal action against you, resulting in additional legal fees and court judgments.
• License suspension or revocation: Driving without insurance often leads to the suspension or revocation of your driver's license, especially if you have previous infractions.
• Required forms (SR-22 or FR-44): Some states mandate the filing of specific forms, such as an SR-22 or FR-44, with your state's Department of Motor Vehicles (DMV) to reinstate your driving privileges after an uninsured accident.
• Vehicle impoundment: Law enforcement officers may choose to tow and impound your vehicle if you are driving without insurance.
• Fines: You will likely face substantial fines for driving without insurance, and these fines can increase if you have multiple uninsured incidents.
• Jail time: While a first offense may not result in incarceration, repeated incidents of driving without insurance increase the likelihood of a jail sentence.
• Higher insurance premiums: Insurance companies often view drivers who have caused accidents or had a lapse in coverage as higher-risk, leading to increased insurance rates.

State-Specific Considerations

It is important to understand the insurance laws in your state, as they can significantly impact your obligations and options after an accident.

• No-fault vs. tort (at-fault) states: Most states follow a tort system, where the at-fault driver can be sued for damages, including medical bills, car repairs, and pain and suffering. In no-fault states, drivers typically seek compensation from their insurance company, but there may be circumstances where a lawsuit is permitted.
• "No Pay, No Play" laws: Some states have implemented "No Pay, No Play" laws, which restrict uninsured drivers from claiming certain damages. In some states, uninsured drivers may not be able to recover any damages, while others may limit claims to specific categories like medical bills, lost income, and vehicle repairs.
• States without mandatory insurance: Only New Hampshire and Virginia do not legally mandate car insurance. However, drivers in these states can still be held accountable for personal injury and property damage caused in an accident.

What to Do if You Don't Have Your Insurance Card

If you are in an accident and realise you don't have your physical insurance card, don't panic. Most insurance companies provide digital insurance cards that can be accessed through their mobile apps or websites. These digital cards are usually accepted as proof of insurance in most states. Additionally, you can exchange contact and vehicle information with the other party and consult your insurance provider to discuss the next steps.

Frequently asked questions