Carrying Car Liability Insurance or the Financial Responsibility Law: A Mandate in 48 States
If ever a driver gets caught without car liability insurance, except in the states of New Hampshire and Virginia, one of the punishments he or she may face is suspension of his or her driving privileges and, in order to have these privileges reinstated, he or she will have to carry an SR-22 filing which is required by a court. An SR-22 is a certification that a driver’s car insurance provider would send his or her state’s Department of Motor Vehicles (DMV) to prove that he or she is already insured; it is required of drivers cited for driving without insurance or those whose license has been revoked or suspended.
In 48 US states, carrying car liability insurance, otherwise known as the financial responsibility law, is a mandate. Financial responsibility, when talking about car insurance, refers to money a driver is obligated to pay a person whose property has been damaged or who has been injured in an accident wherein said driver is at fault.
Proving financial responsibility can be done through carrying car insurance or through any means that is approved by the state, such as: filing a government bond; keeping cash deposit; or, posting a surety bond. The need to prove financial responsibility becomes necessary if a traffic enforcer stops you and asks for your car insurance, when you register your car or renew your driver’s license, or if you get involved in a traffic accident.
Despite being a mandate, however, many drivers, according to the Insurance Research Council, continue to drive without carrying auto liability coverage. This is because many drivers say that insurance coverage is simply expensive. Well, this is a sad truth, especially since many car insurance providers find all means possible to increase premium payments by looking at a driver’s age, driving experience, driving history, and the type of car that he or she drives.
According to Milwaukee, WI car accident lawyers, however, proving financial responsibility is a mandate, thus, violating it can only result to punishments and regret. The best recourse for drivers, therefore, is to get an insurance quote online for the best, yet totally affordable car coverage.