Since insurance is regulated state-by-state, not federally, different states have different insurance requirements. If you are curious what the minimum liability limits are in your state, or any another, refer to the list below:
Now that we established how much insurance you need for your vehicle, we’ll address how you must prove that you purchased a policy. Generally speaking, your “proof of insurance” (a document of financial responsibility) must show the following:
Acceptable documents are insurance ID cards, full-fledged policies, declaration “dec” pages, and binders. Keep in mind though, nothing in the insurance industry is ever simple or easy. What is good in some states may not be good in others, and a handful of states have unique requirements.
o Name on the policy = name on the driver’s license
o Address on the document (if present) = address for registration
o Document must include the insurance company’s NAIC number
o Document must include the insurance company’s NAIC number
o Document must include the insurance company’s full, legal name, Florida’s numeric ID number of the insurance company, and a warning of Section 316.646
o Does not accept an insurance ID card or "dec" page
- Must be a binder
Indiana
o Document must prove that the $25,000/$50,000/$25,000 liability limits are fulfilled
Maryland
o The insurance company must be licensed to do business in Maryland
o Document must include the insurance company’s full name, policy or binder number, and agent’s name (if applicable)
Michigan
o Document must say “No-Fault” and include the insurance company’s name and policy or binder number
Minnesota
o Can be either an insurance ID card or "dec" page
- Document must include the insurance company’s name, policy number, and expiration coverage date
New Jersey
o Can be either an insurance ID card or "dec" page
- “The front of the card must contain the insurance company’s name, the insured’s name and address, the policy number, effective date, expiration date, vehicle description (make, model, and VIN), the heading “State of New Jersey Insurance Identification Card,” the insurance company code, and the name and address of the insurance company or the office or agency issuing the identification card. The reverse of the card shall include the address established by the insurer for the filing of notification of the commencement of medical treatment by treating medical providers.”
New York
o The insurance ID card must be “bar-coded”
o Customer name must satisfy the following:
- “Last, First, Middle”
- No spaces allowed
- Maximum of 20 characters
- Name on the document = name on the driver’s license
o The insurance company must be licensed to do business in North Carolina
o Can be an insurance ID card, full-fledged policy, or binder
- Document must include the insurance company’s name, effective and expiration coverage dates, vehicle year, make, model, and VIN
Oklahoma
o Document must include the insurance company’s name, address, and NAIC number
Pennsylvania
o Can be an insurance ID card, full-fledged policy, "dec" page, or binder
- Document must include the insurance company’s NAIC number
o Person submitting proof cannot be listed as an "Additional Insured" or "Loss Payee"
- “Registration name must match insurance”
South Carolina
o A signed affidavit subject to the state’s perjury statutes
- Document must include the insurance company’s name
Texas
o Can be an insurance ID card, full-fledged policy, "dec" page, or binder
Washington, DC
o Does not accept electronic proof of insurance
- Must be a physical insurance ID card or full-fledged policy
- “A document issued by an insurance company that lists the name of the insurance company, the policy number, the name or names of the insured, and the period of coverage for the insurance.”
West Virginia
o The insurance company must be licensed to do business in West Virginia
o “. . . a certificate of insurance, an insurance policy, a mechanically reproduced copy of an insurance policy, a certificate of self-insurance, an image displayed on a wireless communication device . . .”
- Document must include the insurance company’s NAIC number
Why is this so important? Well, if you’re looking to buy or lease a vehicle, 99% of the time, the dealership will require you to show proof of insurance before you drive off the lot. Also, any failure to show proof that you are legally insured by an insurance company while driving might get you into serious trouble. Your vehicle’s registration may get delayed or denied, your license may get revoked, or you may get a traffic ticket. It is imperative that you not only possess proof of insurance, but that you possess the proper form of proof, too. Luckily, today's technology has caught up with the insurance industry and made the identification process more convenient for consumers. Currently, forty-six states have adopted provisions allowing such identification to be provided electronically, such as on an iPhone.
Please be sure to diligently review the details of this blog post and make sure you have sufficient limits and the proper proof of insurance. We are here to help, so hit us up directly if you have any questions!
