Drivers on the road who have adequate auto insurance may wonder, what is the purpose of needing a form or way to prove I have car insurance? Besides it being a state law in most areas, there are a few additional reasons we’ll cover here that drivers may not have considered before. These can help give a better understanding to the purpose of having a proof of insurance card. Afterwards, we’ll show drivers how to obtain their proof of insurance if they don’t yet have it.

Why would you need proof?
Because it is a state law to carry auto insurance, drivers need a way of stating they have proper insurance coverage through a legit company. In most states, it is common practice for an officer to request proof of insurance along with the driver’s license and registration when the driver has been pulled over. They can’t just use word of mouth to verify their insurance coverage, especially because the police officer could assume they are lying or even worse, in a major accident the person may not even be conscious enough to explain who their provider is and that they have coverage. If a driver cannot provide this proof during a routine traffic stop or at an accident scene, that driver will face some consequences.

It’s possible that if the driver does indeed have proper coverage but for some reason does not have their card, they could only be written a warning. This, of course, depends on how many times the driver has been caught without insurance. The severity of the penalty increases with each offense. In addition to these, the driver’s license and possibly the vehicle’s registration could be suspended in some states.

Another reason for proof of auto insurance is to reinstate a license or vehicle registration. When the driver has lost their license or vehicle registration to suspension, they will need to show to the court that they do have auto insurance by providing a proof of insurance card. The easiest and quickest way to do this is to purchase a policy with us. By purchasing a policy here, the driver can walk out with the proof they need. This card is valid and can be brought into the court the very next day, if the court allows, and the license and registration can be reinstated. If you are already a client of ours, we can fax a proof on your new car, right to the Secretary of State’s office.

Also, drivers who have purchased a vehicle from a dealership know they are usually asked by the dealership or the loan company if they have auto insurance. Loan companies who finance the purchase of a new car will only agree to loan the money if the driver has full coverage on the vehicle. They want to be sure that the driver has a way to pay for the loan in full, even if the vehicle is involved in a major accident or if it’s stolen. An auto insurance company agrees to pay for damages up to the cash value amount of the vehicle, which pleases the loan company enough to agree to loan the money out to the driver.
To get your “Proof of Insurance” give me a call at (231) 744-9099 or visit my website first at www.muskegonautoinsurance.net