"Proof of insurance" is just what it sounds like: It’s a record that shows you meet your state’s requirements for vehicle insurance. Requirements vary from state to state, but nearly all states require that you demonstrate some form of financial responsibility.

Top Financial Responsibility

By law you must prove that you are able to pay for property damage and physical injuries your vehicle causes. This is called financial responsibility, or liability. Each state sets its own liability minimums, so if you aren’t sure how much coverage you need, visit the Auto Insurance Requirements page.

Top Acceptable Forms of Proof of Insurance

Most people cover their liability with an insurance policy, and the most common form of proof of insurance is the card the insurance company sends.

In some states the preferred form of proof of insurance is an electronic database to which insurance companies send your insurance information directly. Even if you live in an electronic reporting state, you should keep your insurance card in your vehicle as a backup.

Alternatives to Insurance

If you do not wish to purchase an insurance policy, many states will allow you to prove financial responsibility in one of two ways:

1. Make a large deposit with the state treasurer. The amount varies by state and can run from $25,000 to $100,000.
2. Secure a bond with a surety company authorized to do business in your state.

If you take one of these options, you will need to keep a certificate of your deposit or bond with you as proof of insurance.

Top When You Must Show Proof of Insurance

You need to present proof of insurance in the following instances:

• When you register your vehicle (in many states).

• If you are in an accident.

• If an officer pulls your over or asks for proof at any other time.