How it works
The Texas Department of Insurance sums up the idea: state law requires drivers to show proof that they can pay for accidents they cause, and most people do that by buying liability insurance.
California's DMV shows how proof is used in practice. Drivers must keep evidence of insurance in the vehicle at all times and provide it:
- when a law enforcement officer asks for it,
- when renewing the vehicle's registration,
- when the vehicle is involved in a collision.
California insurers also report coverage to the DMV electronically. If the DMV does not receive proof of insurance for a vehicle, it suspends the registration, and the car cannot be driven or parked on public roads until proof is submitted.
Forms of proof vary by state. Besides an insurance card, California accepts other kinds of financial responsibility, such as a deposit with the DMV, a surety bond or self-insurance. The DMV may also ask for other evidence, including an SR 22 proof of insurance certificate, which some drivers must file after certain violations.
Related terms
Sources
- California DMV, Insurance requirements carrying and showing evidence of insurance, electronic reporting, registration suspension, accepted forms and SR 22 certificates
- Texas Department of Insurance, Auto insurance guide proof of ability to pay for accidents
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