Do You Need Proof of Auto Insurance?

Every state, as well as Washington, D.C., requires that drivers show proof of financial responsibility. The vast majority of states — 48 states, in fact — require liability insurance.

New Hampshire and Virginia are the only states that don’t require liability insurance for all drivers. And while they don’t require insurance, they do require that drivers provide some amount of financial responsibility.

In New Hampshire, drivers who don’t carry liability insurance are required to show they can provide sufficient funds to cover any damages from accidents they’re responsible for¹.

Virginia requires drivers to either carry the minimum insurance requirements or pay a $500 Uninsured Motor Vehicle fee annually². It’s important to note that this fee doesn’t actually provide insurance, nor does it provide liability coverage if you cause an accident. Rather, you’d be responsible for those damages out of pocket.

Proof of insurance is an ID card that insurance companies will send you when you sign up for your policy. A physical ID card is the most common form of proof of insurance, although it can also be digital. This ID card includes information about you and your insured family members, your policy, and the vehicles covered.

Requiring that all drivers carry proof of insurance is a way that law enforcement can ensure everyone is abiding by their state’s insurance requirements. When you’re pulled over or in an accident, law enforcement can quickly glance at your insurance car to make sure you’re covered.

The most common form of proof of insurance is the ID card your insurance company sends you when you sign up for or renew your policy.

But, depending on your insurance company, you may also receive a digital ID card that you can use in your insurer’s mobile app or on your phone’s digital wallet. All states except New Mexico accept digital proof of insurance in place of a physical ID card³.

What exactly appears on your proof of insurance may vary depending on the insurance carrier you use and the type of proof of insurance you’re using (such as a physical ID card versus digital proof of insurance). In general, proof of insurance includes the following insurance information:

• The name or names of the insured party or parties
• Vehicle information, including VIN, make, model, and year
• Your policy number
• Your policy’s effective date and expiration date
• Insurance agent’s information
• Coverage amounts

It’s a good idea to have a phone charger in your car in case your phone dies and you don’t have your physical insurance card.

Getting proof of insurance is an easy process:

1. In most cases, your insurance carrier will send you an insurance ID card automatically when you sign up for your policy. If you haven’t bought insurance yet, get insurance quotes online.
2. If you haven’t received an ID card or you’ve lost it, you can request a new card from your insurance company. You can call customer support to request your ID card, or your insurer may even have a place on its website or app to request a new card.
3. You may also be able to find proof of insurance on your insurance carrier’s website or app. You may be able to print this proof of insurance or download it to your phone.

A lapse in car insurance can be costly. Not only could you face financial penalties if you’re caught driving without proof of insurance, but you could also be on the hook for significant damages if your car or someone else’s car is damaged in an accident.

The good news is that most car insurance policies renew automatically, so you won’t have to worry about lapses. If for some reason your policy doesn’t renew automatically, you should contact your insurer as soon as possible.

If your insurance company doesn’t renew your policy, which could be the case for high-risk drivers, then you should shop around for a new policy before driving your vehicle again. Learn how to switch auto insurance providers.

In the 48 states that require liability insurance, you’ll need an active policy to operate a vehicle legally. But what exactly does that mean when purchasing a car? Can you buy a car without car insurance?

In some cases, a dealership may require proof of insurance before you can drive the car off the lot. And while that’s not always the case, you’ll still need insurance to legally drive the car home.

It’s also worth noting that while dealers may not require proof of insurance, a lender will. If you’ve financed your car, you’ll have to provide proof of insurance to your lender. And depending on where you live, you may also need proof of insurance to register a car.

Just about every state has penalties in place for a driver caught operating a vehicle without proof of insurance, but we should make an important distinction first. There’s a difference between driving without car insurance and driving without proof of car insurance. One is a more serious offense, and it’s reflected in the penalties that each state imposes.

The penalties for driving without insurance vary by state. They include having to pay a fine, having your vehicle impounded, and having your driver’s license suspended. Often, the penalties are milder for first offenses and increase for second and subsequent offenses. The chart below shows the penalties for driving without insurance in each state.

Aside from penalties, without insurance, you can’t receive compensation or register your vehicle at your state’s vehicle registration entity.

The amount of auto insurance you’ll need depends on your state. Some states require just liability coverage, while others also require uninsured/underinsured motorist converge or personal injury protection.

Liability

Liability is the most common type of insurance that states require. This type of coverage is designed to cover the cost of damages you’re responsible for if you’re at fault for an accident. Liability insurance is broken down into two types of coverage: property damage and bodily injury.

The liability coverage varies by state. Most states require $25,000 per person and $50,000 per accident of bodily injury protection and either $20,000 or $25,000 of property damage protection⁵. Keep in mind that if you only purchase liability coverage up to your state’s minimums and the damages exceed that amount, you’ll have to pay them out of pocket. See our auto insurance guide for your state’s minimum coverage requirements.

Uninsured/Underinsured Motorist

Some states also require uninsured and underinsured motorist coverage. The purpose of this insurance is to cover a driver’s expenses if they’re in an accident with someone who doesn’t have insurance.

This type of coverage is important, given that as of 2019, more than 12 percent of drivers don’t have the legally required insurance. And in a handful of states, the uninsured rate exceeds 20 percent⁶.

Personal Injury Protection

Most states require drivers to have both bodily injury and property damage liability insurance. But a handful of states have “no-fault” laws, which means that all drivers file medical claims with their own car insurance companies, regardless of who caused the accident. And except in cases of severe injury, drivers can’t sue the responsible driver for their medical expenses.

No-fault-insurance states still require drivers to carry property damage liability coverage, and many still require bodily injury coverage. But they also require what’s called personal injury protection or medical coverage, which covers a driver’s own medical expenses in an accident.

An SR-22 is a form that some drivers must carry to prove they meet their state’s minimum insurance requirements. Known as a certificate of financial responsibility, this type of form is often required for those with a high driver risk.

You might be ordered to carry an SR-22 if you’ve violated certain driving laws, including driving under the influence, driving without insurance, and reckless driving. Like other types of proof of insurance, you’ll receive your SR-22 from your insurance carrier.

No matter where you live, you’ll have to provide some sort of proof of financial responsibility to legally operate a vehicle. Most states require liability insurance coverage, while only New Hampshire and Virginia offer drivers an alternative.

While car insurance is an added cost in your budget, it can save you thousands, or even tens of thousands, of dollars if you’re involved in an accident. And when you purchase insurance, remember that while states may require only a certain amount, any damages that exceed your coverage limits will be yours to pay out of pocket. You can reduce your risk further by purchasing coverage above and beyond your state’s minimum requirements.