Car accidents can leave a terrible, lasting impact on the financial health of those involved.

That's why the Department of Motor Vehicles (DMV) requires all drivers to carry vehicle liability insurance before they hit the state's roads. In short, the DMV needs assurance that drivers are financially responsible enough to handle the possible costs associated with driving.

Ways to Establish Financial Responsibility

Residents of some states have several ways of proving their financial responsibility, but in Rhode Island you only have one option: carrying bodily insurance and property damage insurance coverage that meets the state's minimum requirements.

Rhode Island Liability Insurance Requirements for Private Passenger Vehicles

To meet the mandatory insurance law, you must have at least the following protection:

• $25,000 of bodily injury coverage for injuries or death occurring to one person in an accident

• $50,000 of bodily injury coverage for injuries or deaths occurring to more than one person in an accident

• $25,000 of property damage coverage per accident

Financial professionals recommend having much more extensive protection than what the DMV requires. Remember, accidents can leave you financially vulnerable, and even open to lawsuits.

Our Types of Coverage section provides more insight on this subject, and gives helpful information on the various kinds of protection available to you.

If cost is an issue, try comparison shopping online or by phone to find the cheapest rates and best coverages available.

Proof of Insurance and Financial Responsibility

Your insurer will notify the DMV if your policy has lapsed or been canceled.

But, it's up to you to maintain proof of insurance, and show it whenever necessary. You can do this by keeping your insurance card in your vehicle at all times.

Penalties for Failure to Maintain Financial Responsibility

What if you have no proof of insurance when a law enforcement officer asks for it?

If it happens after being pulled over for a possible traffic violation, you could be cited, have to pay a $500 fine, and have your license suspended for three months. But, if you can show within 10 days that you had the proper insurance at the time of the traffic violation, your penalties may be waived.

If you need details more specific to your situation, please contact the DMV at (401) 462-4368.