Insurance and Financial Responsibility Laws

According to state legislators, drivers without insurance comprise a danger to other drivers and pedestrians. Unless all drivers are insured, responsible drivers end up paying (in rising insurance premiums) the costs incurred by irresponsible uninsured drivers. Compulsory insurance statutes require that drivers prove that they have insurance as a prerequisite for obtaining a vehicle registration. Generally this requirement is fulfilled when drivers purchase collision insurance (that covers the traditional damages resulting from a car crash). The typical financial responsibility law –- profiled in this section -- states that you are responsible for any havoc, whether personal injury or property damage, that you cause as a driver.