What Is Proof of Auto Insurance Coverage?

Proof of auto insurance is required when you are registering a vehicle, are involved in an accident and pulled over by a police officer. It is provided by your insurer to confirm you have at least state required minimum coverage and include the company’s details, policy number, start and expiration date, policyholder’s name and insured vehicle’s make, model and VIN. It is often provided as an ID Card but digital proof showing all these details is often accepted as well as a letter or declaration page.

Police can run your license plate through electronic verification systems in their computers, tablets, or by calling in and find out if the vehicle has current insurance coverage or not. Still, motorists are required to carry proof of auto insurance with them to show when they are pulled over by police, share with other parties when they are involved in an accident and whenever it is required by authorities like registering a vehicle.

Companies automatically send an auto insurance ID card when they renew or sell a new policy through the post. Also, a schedule of coverage is usually acceptable as a proof. If it isn’t sent by post or motorists ask the documents to be sent by email, they could easily find it and print. Today many people have an online account and login details, which allow them to see all their documents and print or save on their cell phones.

Also, people keep electronic records these days and digital proof of vehicle insurance is accepted in nearly every state. People have their insurance companies’ app on their phone to access their details whenever they want and show the required coverage details. Authorities usually like to see the name of insured, address, vehicle details, policy start and end dates, coverage details, insurer’s name and policy number. An insurance ID card contains this information as well as the declaration page of a policy.

Policyholders tend to leave paper proofs at homes, only to rummage glove compartment frantically and unsuccessfully at the time they are pulled over. Also, they may have the old documents that expired in their cars. In contrast, it is nowadays unimaginable not to carry a cell phone at all times. They can now access their latest insurance details whenever they need but they should learn what is needed and how to get it beforehand.

Minimum liability vehicle insurance coverage is required in almost all states, who enforce this rule by checking whenever they can to reinforce the message. By matching insurance policies with vehicle registrations, states can check electronically to see which state registered automobiles don’t have coverage and start chasing the owner with an explanation or confirmation of coverage.

Still, nearly 14% of motorists don’t have the minimum required automobile insurance. So, states have to carry on the enforcement work on the ground as well. And most states may impound the vehicle when they catch it driven without insurance and release after the owner comes back with a proof of insurance. They would still need to pay the charges for towing, storage and impound fees.

Regularly checking insurance documents allows authorities to catch people who lied about their vehicle not being driven or have been escaping for some time. Also, it is a reminder for motorists that they need to buy insurance before they can drive.

Furthermore, other people involved would want to know your insurance details after an accident. Motorists are required to exchange this information in such cases. If not, other parties can call the police to take these particulars.

Nearly all states ask for proof of insurance before they can register a car at the DMV. They will accept all the forms of automobile insurance proof discussed above as well.

And lenders would want to see proof of insurance before they release funds when they loan money for a car purchase as a way of securing their investment in case something happens to the vehicle. So, it is best to be prepared by getting a few quotes beforehand when considering a vehicle purchase.

Most motorists know they need to buy liability insurance to provide for other people who may suffer in an accident involving their cars. They don’t only purchase the minimum required but also insure their vehicles as well so that they can claim compensation if something happens to it. People who purchase a policy to comply with the laws or provide proof when needed may fail to see how valuable it can be at times of need and therefore fail to arrange sufficient coverage.