(1) Proof of valid insurance.  The form of evidence varies by state and may take the form of an insurance policy, binder, certificate of self-insurance, surety bonds, or certificate of deposit.  Many states require insurance identification cards issued by the insurer.  Self-certification, where the driver is required to identify the insurer and policy number in writing rather than in person, is not included.

(2) Compulsory Coverages:

BI Liab=Bodily injury liability

PD Liab=Property damage liability

UM=Uninsured motorist

PD=Physical damage

Med=First party (policyholder) medical expenses

UIM=Underinsured motorist

PIP=Personal Injury Protection. Mandatory in no-fault states.  Includes medical, rehabilitation, loss of earnings and funeral expenses.  In some states PIP includes essential services such as child care.

FR=Financial responsibility only.  Insurance not compulsory.

(3) The first two numbers refer to bodily injury liability limits and the third number to property liability.  For example, 20/40/10 means coverage up to $40,000 for all persons injured in an accident, subject to a limit of $20,000 for one individual, and $10,000 coverage for property damage.

(4)  a.   Insurer must notify Department of Motor Vehicles or other state agency of cancellation or nonrenewal.

       b.  Insurer must verify financial responsibility or insurance after an accident or arrest.

       c.  Insurer must verify randomly selected insurance policies upon request.

       d.  Insurers must submit entire list of insurance in effect, which may be compared with registrations at a state agency.  Also known as a computer data law.

(5)  Insured must provide evidence of insurance at some point after the accident to the Department of Insurance, other state agency, or law enforcement officer.  Deadlines vary among the states.

(6) Penalties are provided for in the law but may not be mandatory for first offenses.

(7) Proof of insurance must be presented within 30 days of registration.

(8) Low-cost policy limits for Los Angeles and San Francisco low-income drivers in the California Automobile Assigned Risk Plan are 10/20/3; pilot program effective January 1, 2000 until January 1, 2007.

(9) Instead of policy limits, policyholders can satisfy the requirement with a combined single limit policy. Amounts vary by state.

(10) In addition, policyholders must also carry at least $1,000 for medical payments.

(11) May be waived for the policyholder but is compulsory for passengers.

(12) Basic policy (optional) limits are 10/10/5. Uninsured and underinsured motorist coverge not available under the basic policy but uninsured motorist coverage is required under the standard policy.

(13) In addition, policyholders must have 50/100 for wrongful death coverage.

(14) Although legally defined as financial responsibility, Tennessee's law is similar to a compulsory law because drivers can be fined if stopped by police or after crashes if they cannot show proof of financial responsibility.

*SB 1670, effective September 1, 2005 requires the Texas Department of Insurance to establish a vehicle insurance verification system.

Source:  Property Casualty Insurers Association of America; state departments of insurance and motor vehicles.

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