Proof of Insurance: An Essential Document to Keep in Your Car

To legally drive a vehicle in most of the United States, drivers must have automobile liability insurance. Most states also require drivers to carry proof of insurance. Here's what you need to know about proof of insurance to ensure you have the proper documentation when you're behind the wheel.

What Is Proof of Insurance? 

Uninsured motorists are a significant issue in the United States, where nearly 13% of drivers are estimated to be uninsured. If you are hit by an uninsured driver, you may be responsible for your own medical bills and car repair costs. The likelihood that this will occur varies by state. For example, estimates of uninsured drivers range from 3.5% in Massachusetts to 29.4% nationally (Mississippi).

To reduce the number of uninsured drivers, 49 states require drivers to carry a certain amount of bodily injury and property damage liability coverage. If the policyholder is found to be at fault in an accident, it can pay the other driver's medical bills, vehicle repair costs, and other expenses.

Drivers in Ohio, for example, must have at least $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident, and $25,000 in property damage coverage. In an insurance policy, this is written as 25/50/25. Drivers can purchase more liability coverage than the minimum if they wish, which is usually a good idea if they have valuable assets to protect in the event of a lawsuit.

Some states also require drivers to carry additional insurance, such as medical payments coverage or personal injury protection, to cover injuries to the policyholder and any passengers.

New Hampshire is the only state that does not require drivers to purchase auto insurance, though it strongly advises them to do so.

To demonstrate that you are in compliance with your state's laws, you must carry proof of insurance with you at all times while driving. If you are stopped by police, they may request proof of insurance, as well as your license and registration. You'll also need it if you get into an accident.

An insurance ID card or other document from your insurance company can serve as proof of insurance. Your ID card or form must show the policy number, policy effective dates, covered vehicle, and policyholder name to satisfy the proof of insurance requirements.

What Is an SR-22? 

Some drivers will require an SR-22 form, also known as a certificate of financial responsibility, in addition to standard proof of insurance. The form is known as a FR-44 in Virginia and Florida.

For example, if you have been convicted of a DUI or DWI, received several speeding tickets in a short period of time, or have a hardship license, the state or a judge may order you to obtain an SR-22.

The SR-22 is not a stand-alone insurance policy. It's a form that you must file with your state to demonstrate that you meet the state's minimum auto liability requirements.

Your insurance company will usually file the SR-22 form for you electronically, though in some cases it may have to be mailed.

How to Get Proof of Insurance

When you buy car insurance, the insurance company will usually send you proof of coverage right away. You might also be able to get a temporary insurance card to use until your hard copy arrives.

When your policy renews or you make changes to your coverage, you'll be given a new insurance card. When you receive a new insurance card, shred and discard your old one and place the new one in your vehicle to demonstrate that your insurance is current. You should also photograph or make a photocopy of your most recent card and keep it separate from your car just in case.

Proof of insurance is also available in electronic form in the majority of states. If you are stopped by law enforcement, you can show them your smartphone's digital insurance card.

What to Do If You Lose Your Insurance Card

If you misplace your insurance card and require proof of coverage, you have a few options:

• Get the insurance company's app. Many insurance companies have apps that give you digital copies of your insurance cards.
• You can access your account online. If your insurance provider does not have an app, you may be able to download and print a card by logging into your account on the company's website.
• Please contact your agent. Call your insurance company and request an updated copy of your insurance card.

Penalties If You’re Caught Without Proof of Insurance

If you are stopped by police and do not have proof of insurance, the officer has the authority to issue you a ticket. You may face fines and other penalties depending on your state.

For more information, go to your state's department of motor vehicles website and look up the minimum insurance requirements and penalties for not having proof of insurance.