How States Determine If You Have Car Insurance

How States Determine If You Have Car Insurance

Every state has some form of financial responsibility law that generally requires drivers to maintain certain minimum levels of insurance. Three states (Mississippi, Delaware, and Virginia) have slightly different options available when it comes to financial responsibility. Many drivers, seeking the lowest costs, will frequently choose their state minimums when it comes to auto insurance, which may not always be the best idea. In many cases, these miniums are so low as to provide little coverage in a real life incident. Minimum coverage also does not provide for uninsured motorist insurance, which can be invaluable.

Minimum coverage or not, how do states know that you are carrying the required levels of automobile insurance?  It may surprise you to learn that not all states are created equal when it comes to this aspect of auto insurance.

In some states, proof of insurance may be as simple as signing an affidavit that you have insurance in place. Others require on-site proof of insurance coverage when applying for a drivers license or registering a vehicle. But following that, how do states know that coverage is maintained?

In some cases, states will perform random checks, mailing our requests for proof of insurance.  If you cannot prove you had insurance on a given date, you can be cited. Department of Motor Vehicles may also be tied to a system that associates coverage with a license plate number. Insurance companies can be required to notify the DMV if coverage is dropped or a driver fails to renew. However, frequently a new underwriter is not required to report coverage when a driver switches companies. In these cases, it can appear that a driver doesn’t have insurance, when in fact they just switched providers. This can create some inconvenient issues that, however, usually can be straightened out rather quickly.

Of course, most states require you to present proof of insurance when requested by a law enforcement officer. If you do not have it available, it will be required before appearing in court or when paying for a citation. While proof of insurance was usually provided through an insurance card, today just about every state and all major automobile insurance companies use an electronic proof of insurance through a smartphone app. This provides immediate up-to-date data and minimizes confusion or miscommunication.

Are you sure you are getting the best car insurance rates possible? How could you know if you don’t ask? Contact our independent insurance agents and allow them to go to work for you. You may just get improved coverage at more appealing rates!

We research the best insurance so you don't have to.

Leave a Comment





Why Coin Collecting Is Still A Terrific and Educational Hobby for Kids

October 30, 2020

Why You Should Have an Annual Business Insurance Review

October 29, 2020

The Two Biggest Factors That Make Life Insurance Rates Increase

October 28, 2020

The Great Recreational Vehicle Revival

October 27, 2020

Want to Add Value to Your Home? Consider Upgrading Your Landscaping

October 26, 2020

Weird Stuff You May Not Know About Grocery Shopping

October 23, 2020

Tapping Into The Genius of Your Staff to Make Your Business Better

October 22, 2020

Life Insurance: Buy What You Can Afford

October 21, 2020

The 10% Rule: Should You Drop Your Comprehensive & Collision Insurance?

October 20, 2020

This Biggest Cause of House Fires May Surprise You

October 19, 2020

The Benefits of Downsizing Your Household

October 16, 2020

Five Cost-Effective Marketing Ideas for a Small Business

October 15, 2020

Why an Independent Agent is Your Best Option for Life Insurance Quotes

October 14, 2020

Six Common Sense Tips to Make Your Home Safer and More Secure

October 12, 2020

Seven Steps You Can Take Today to Gain Control of Your Household Budget

October 9, 2020

Five Facts About Small Business Insurance Most Aren’t Aware Of

October 8, 2020

Getting Married? Now’s a Good Time to Consider Life Insurance

October 7, 2020

Drivers Aside, Our Highways Are Getting Safer

October 6, 2020

The Five Most Common Home Insurance Liability Claims

October 5, 2020

8 Upgrades to Help You Sell Your Home Faster for More $

October 2, 2020

Why You Need Business Insurance Even if You Rent Your Business Space

October 1, 2020

Why Life Insurance Should Be a Fundamental Part of Your Financial Plan

September 30, 2020

The Ten Most Frequent Causes of Automobile Accidents

September 29, 2020

The Good, Bad and Ugly of Renting

September 28, 2020

Whatever Happened to These Rock Stars?

September 25, 2020

Etsy and Ebay and Work From Home Businesses

September 24, 2020

“Do Women Live Longer Than Men?” and Answers to other Other Life Insurance Questions

September 23, 2020

How States Determine If You Have Car Insurance

September 22, 2020

Are You Asking the Right Questions About Homeowners Insurance?

September 21, 2020

Smartphones: How and How Much We Use Them May Surprise You

September 18, 2020

Own a Rental? You May Need Business Insurance

September 17, 2020

What is Decreasing Term Life Insurance?

September 16, 2020

How States Determine If You Have Car Insurance

September 15, 2020

One of the Best Buys in Loss Prevention: Renters Insurance

September 14, 2020

Seven Steps to a Better Night’s Sleep

September 11, 2020

Checking for Financial “Leaks” at Your Business

September 10, 2020

Three Ways Life Insurance May Help Pay For College

September 9, 2020

Is Your Car Insurance Company Aware You are Driving for a Food Delivery or Ride Sharing Service?

September 8, 2020

Dangerous Items You Don’t See Around Homes Much Anymore

September 7, 2020

How Average Are You? Compare With This 12 Point Checklist

September 4, 2020

Think Twice Before Cutting Back on Business Insurance

September 3, 2020

Life Insurance as a Gift

September 2, 2020

What You Should Know About High-Risk Car Insurance

September 1, 2020

Whatever Happened to Backyard Diving Boards?

August 31, 2020

Some Very Common and Unique City Names in the United States

August 28, 2020

Protecting the Electronic and Digital Assets of Your Business

August 27, 2020

What it Takes to Qualify as a Beneficiary

August 26, 2020

Unusual DUI Cases That May Leave You Shaking Your Head

August 25, 2020

Homeowners Insurance When You Live Near Water

August 24, 2020

Gambling in America: Bet You Didn’t Know This

August 21, 2020

Why Your Bank May Require Business Insurance to Secure a Commercial Loan

August 20, 2020

Unique Benefits of Life Insurance You May Not Be Aware Of

August 19, 2020

Some Eye Opening Auto Accident Statistics

August 18, 2020

Why Maintenance is an Integral Part of Your Agreement with Your Homeowners’ Insurance Company

August 17, 2020

Drive-in Movie Theaters: Are They Making a Comeback?

August 14, 2020

Own a Bricks and Mortar Business? Look Out for These Liability Risks

August 13, 2020

What You May Need to Know About Filing a Life Insurance Claim

August 12, 2020

Can You Guess the Earliest, Widely-Used Car Safety Features?

August 11, 2020

When Your Hobby Turns into an Insurable Collection

August 10, 2020

Do You Remember These “One Hit Wonders?”

August 7, 2020

Contact Us

-CONTACT US

OUR LOCATION

Have A Question?

We have an answer. Call us at 1-559-447-1747

2037 W. Bullard Ave., #276 Fresno, CA 93711

1-559-447-1747
CA License #0E05573

© Copyright 2020 McKinley Insurance Services  |   All Rights Reserved
Site by ICA Agency Alliance

2037 W. Bullard Ave., #276 Fresno, CA 93711
1-559-447-1747
CA License #0E05573

© Copyright 2020 McKinley Insurance Services  |   All Rights Reserved
Site by ICA Agency Alliance