With the new 2013 law on using an electronic version of proof of financial responsibility or proof of insurance comes a few more questions. Here is a little “insurance trivia”:

  • Who needs to provide proof of insurance? Drivers of a motor vehicle and every owner of a motor vehicle must maintain financial responsibility of the vehicle at all times. This means that whether you own the car or not you need to be able to show that the car has insurance if you get pulled over.
  • What is the penalty of not having proof of insurance? Failure to have insurance will result in a fine and the possibility of having your license suspended.
  • Are there different forms of financial responsibility? Yes, in fact there are 4. The usual way is to have a liability insurance policy from a insurance company. It is a good idea to do a price check to be sure you are getting the best price for the coverage. The second and less common is a $35,000 surety bond. You can also get a DMV issued self-insurance certificate or a DMV acknowledgement of a $35,000 cash deposit.

If you get in an accident with damages over $750, if someone was injured or if a death resulted from the accident, you must provide DMV with a traffic accident report and proof of insurance within 10 days of the collision. Not complying with these rules will result in your drivers license being suspended.

Even if you are high risk, you can usually get insurance and proof of insurance quickly. It’s best not to take the chance, don’t drive without insurance.