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Auto Insurance Laws: Suspension and Financial Responsibility

Auto Insurance Laws all over the United States have been collaborating with the DMV in a mission to reduce uninsured vehicles on the roads. The DMV has been able to institute minimum insurance liability programs all over the states to ensure that all drivers are insured. The minimum insurance liability requirements are different in every state but are required as proof of financial responsibility in the event of an accident. Nowadays, most insurance companies are able to share real time auto insurance information with the DMV on any one person. With this information, the DMV is able to randomly cross check any vehicle on the road for insurance coverage or driver’s license status of any driver. Law enforcement officers and court personnel have been granted this task by the DMV since it is already entrenched in Auto Insurance Laws in America. These persons have direct access to this shared data by the DMV and insurance companies whenever they are in the field doing their jobs. The Auto Insurance Laws were revised in 2006 to provide for this measure. Some states passed the law later but since ten all have come on board.

Whenever you are pulled over by a police officer you are required to show your proof of financial responsibility to prove that all occupants of the vehicle and any potential property outside are covered in the event of an accident. Proof of financial responsibility is basically your auto insurance cover which can either be minimum liability or any other cover that is above that. Minimum liability is different in every state but is there to cover any physical injury or damage to property in the event of an accident. However, minimum liability cover does not cover the driver of the vehicle if he or she is at fault in the accident.

In the event that your insurance policy is canceled or expires, you have 45 days at most to renew or replace your policy. The length of time you have to do this also varies from state to state. At the expiry of said time without any action from the vehicle owner, the DMV will issue a vehicle suspension notice. On reception of the notice, the vehicle owner has up to 30 days to present the vehicles insurance information alongside a small fine that is also determined by the DMV. If you fail to do this, you will be indicted by the DMV. If you were at fault in an accident, the DMV will require you to personally settle the bill for the damages incurred in the accident. During this time, your car may also be impounded by the DMV pending the settlement of the case.

Whenever the DMV requires that you produce proof of financial responsibility, it is within your best interests to present all documents that pertain to your current auto insurance cover. If for whatever reason your driver’s license was suspended and you had to take up an SR-22 cover, present it to the police officer who has pulled you over for inspection.

There is numerous information on dealing with a suspended car insurance cover that each driver should know. For those who do not or need to know more, enter your Zip code at the top of this page.