Understanding Proof of Insurance
Before driving, make sure you have your driver’s license, vehicle registration, and proof of insurance in your car. In most states, you need a certain amount of automobile insurance. Your proof of insurance proves that you have valid, current auto insurance that fulfills the state’s minimum standards.
In this post, you’ll learn everything you need to know about proof of insurance document and where it applies. It will help you always remain prepared and avoid legal issues in the long run. Therefore, keep reading to the end so you won’t miss a single detail.
What is Proof of Insurance?
To demonstrate that you obey your state’s rules, you must carry proof of insurance with you when driving. If the cops pull you over, they may want proof of insurance and your driver’s license and registration. It will also come in helpful in the event of an accident.
Proof of insurance might include an insurance ID card or other papers from your insurance company. To meet the evidence of insurance requirements, your ID card or form must consist of specific details.
What Does a Proof of Insurance State?
Your policy will be outlined in the document so that anyone examining it may double-check the content.
Most insurers will provide some basic information on an insurance ID card. This information might include:
- The insurance company’s name and address
- The effective and expiration dates of the policy
- A number assigned by the National Association of Insurance Commissioners (NAIC) and policy number
- The policyholder’s first and last names
- The insured car’s year, make, model, and VIN (vehicle identification number) (VIN)
Your proof of insurance generally demonstrates that you have at least the state-mandated minimum level of coverage. The types of coverage (such as collision and comprehensive insurance) and policy restrictions, on the other hand, are rarely specified.
Why Proof of Insurance?
Uninsured drivers are a severe problem in the United States, with around 13% of drivers believed to be uninsured. If an uninsured motorist hits you, you may be responsible for your medical expenses and car repairs. The likelihood of this happening varies by state.
Uninsured drivers are estimated to be 3.5 percent in Massachusetts and 29.4 percent in California (Mississippi). To reduce the number of uninsured drivers, 49 states require drivers to carry at least a little insurance. This includes bodily injury and property damage liability coverage.
If the policyholder is at fault in an accident, both coverages may come in. The other driver’s medical bills, automobile repair costs, and other expenses may receive coverage.
Some states also require drivers to carry extra insurance, such as medical expenditures or personal injury protection. These can cover injuries to the policyholder and any passengers.
In Ohio, for example, drivers must carry $25,000 in bodily injury coverage per person. They must also have $50,000 in bodily injury coverage per accident and $25,000 in property damage coverage. This is what we call 25/50/25 in an insurance policy.
If a motorist has significant assets to protect in the event of a lawsuit, they can obtain more liability coverage.
New Hampshire is the only state that does not require drivers to get automobile insurance. Nevertheless, they actively encourage them to do so.
How Do You Get Proof of Insurance?
When you buy car insurance, the insurance company will typically provide you proof of coverage right away. You may also be able to obtain a temporary insurance card to use until your permanent copy arrives.
You’ll get a new insurance card when your policy renews, or you make changes to your coverage. When you acquire a new insurance card, shred and throw off the old one. Afterward, keep the new one in your vehicle as evidence of coverage.
Take a photo or make a photocopy of your most current card and keep it apart from your car just in case. Electronic proof of insurance is also available in most states. If law enforcement stops you, you can show them your smartphone’s digital insurance card.
Why is Proof of Insurance Necessary?
More than only the police and the department of motor vehicles may need proof of insurance. When applying for a new policy, they may ask you may be asked to present proof of insurance from a current insurance provider. If you have a coverage gap or “lapse,” your auto insurance prices may increase.
Car insurance companies consider a lapse in coverage to be a greater risk. The longer you can prove that you have insurance continually, the cheaper your premiums will be.
It’s a good idea to have copies of your proof of insurance just in case.
What Happens When You Can’t Show Your Proof of Insurance?
To legally drive on public roads in all 50 states, you must demonstrate financial responsibility. This means you must be able to pay if you cause property damage or injuries in a car accident. To confirm the financial commitment, most people purchase liability vehicle insurance.
If you can’t show proof of insurance, you may face penalties or possibly jail time, depending on the state. A ticket may usually be appealed by filing a copy of your proof of insurance. You can also settle it by appearing in court with the evidence you had insurance when the officer pulled you over.
You may be obliged to pay a fine or court fees even if the charges the court has withdrawn charges. If you receive a ticket for failing to submit proof of insurance, make sure you respond to all notifications. Several states will revoke or suspend your license and registration if you don’t have evidence of insurance.
Furthermore, many locations use a computerized insurance verification system to detect uninsured drivers. In other words, they can verify your information and discover that your vehicle registration and insurance do not match. With this, they may file an administrative complaint with the DMV.
In California, for example, if your insurance documentation does not match, you must call your insurer right away. They are to change and resubmit the information.
Keep in mind that failing to produce proof of insurance is not the same as driving an uninsured vehicle. Driving without insurance is a significantly more serious offense resulting in fines, license suspension, and license reinstatement fees. It may lead to higher auto insurance rates or even jail time.
