Financial Responsibility

Written by  //  June 22, 2011  //  Insurance Glossary: E-M, Insurance Terms  //  Comments Off on Financial Responsibility

If you are in an accident, you may be required by your state laws to show proof of insurance or the ability to pay for damages you cause to others. This proof or evidence needs to be kept in your vehicle at all times. Most typically, it is a card issued by your insurance company that proves you have purchased the necessary insurance. It can also be a bond or cash deposit that you have set aside, to be used in lieu of a policy. It some cases, it can be evidence that the vehicle is leased or owned by the federal or state government.

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