In most states, you'll need to verify your car insurance coverage in order to legally register your car or truck. There are typically two ways to do this: Bring your proof of insurance form or insurance ID card to the DMV when you go to register your car or truck.
(in some states if you don't want to buy insurance, you're still responsible to prove 'financial responsibility')
How to Provide Proof of Financial Responsibility
In most states, there is generally more than one way to fulfill financial responsibility laws.
Car Insurance
Car insurance is by far the most common way to fulfill financial responsibility laws.
Typically, your car insurance policy will have to include liability insurance that meets your state's mandated minimum limits for bodily injury and property damage.
You can provide proof of financial responsibility with proof of insurance, which comes in the form of:
Insurance ID cards.
Insurance binders.
Copy of your current car insurance policy.
Some states also require you to have additional types of insurance coverages, such as uninsured or underinsured motorist protection as well as personal injury protection.
Other Forms of Proof of Financial Responsibility
Several states allow drivers to prove financial responsibility through means other than car insurance. Some examples include:
Posting a surety bond with your state.
Keeping a cash deposit with your state.
Filing a government bond with your state.
Consult your state's DMV to see what other financial responsibility options exist for you.
What Happens If You Don't Have Proof of Financial Responsibility
Penalties for violating financial responsibility laws vary from state to state.
Common penalties include the following:
Suspension of your vehicle registration.
Suspension of your driver's license.
Fines.
You should also consider the fact that financial responsibility violations tend to result in having to pay higher than average car insurance rates.
http://www.dmv.org/insurance/proof-of-financial-responsibility.php
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