Proof of insurance typically applies to motor insurance, although it can refer to any type of insurance. Home, tech, holiday insurance – you need to be able to prove you’re insured for what you say you are, no matter what it is. Hopefully, you’ll never have to call upon your insurance.
Insurance is the sort of payment you make every month without even thinking about the benefits – especially home and travel insurance. Sadly, when something happens that calls for the need of insurance, you need to be able to prove it.
Below, we will discuss what proof of insurance – focusing on motor insurance – is and why it’s so important.
What Is Proof Of Insurance?
Proof of insurance differs slightly depending on the type of insurance in question – so you can find more details about the specifics under the relevant sections. However, generally, you can get proof of insurance from any insurance document you’re sent once you’ve taken out a policy. It’s not good enough to simply say you have insurance; you have to be able to prove it.
Most motor insurers will send you proof of insurance either via email or documents in the post. Although most providers now issue digital documents with an insurance card that you can keep in your car or on your person. Keeping this card with you is the fastest way to verify you have a valid insurance policy.
How Important Is Proof Of Insurance?
Interestingly, a study in 2019 found that one in eight drivers failed to have motor insurance – yet the implications of not having insurance are massive, something to be discussed further along. It can seem innocent to neglect the need for insurance – especially if you consider yourself a good driver. Yet, the number one cause of accidents on the road is distracted driving.
You may feel like you have 100% focus on the roads, but how can you account for the people around you? How do you know that somebody isn’t going to speed up behind you on their mobile without realizing you’ve stopped. Or, what if you take your eyes off the road for a second and the car in front stops? That’s why proof of insurance is essential. If something were to happen on the road – your insurance is your lifeline. It protects you medically, for repairs, and legally.
And, it’s against the law not to have it – although it isn’t against the law not to have proof of insurance, it just makes situations slightly more complicated.
Picture this. You’re driving along on a lovely day minding your own business, and you see the blues flashing in your rear mirrors. Instant fear. What could they want? Why me? Was I speeding? – Are all things that might come into your mind. One of the main reasons why having your proof of insurance card is crucial is law enforcement requirements.
They want to know that you have a valid – many people will claim to have insurance when they don’t – insurance card and that the insurance you have meets the state’s minimum requirements for liability. Different states have different liability requirements, but most want to know you’re covered for an accident you cause.
Motor accidents are perhaps the time when it pays to have proof of insurance the most. In the US alone, around 5.25 million accidents happen per year, and 38,000 people lose their lives in serious collisions. It’s perhaps impossible to perceive the true danger of driving on the roads because we just don’t think about it every time we get into the car.
Proof of insurance will allow law enforcement officers attending the scene to verify you have insurance, and it helps speed up claims processes.
Bear in mind, failing to provide proof insurance leads to fines – although they’re minor if you can later prove you are insured.
Aside from the doom and gloom of needing insurance because you’ve found yourself in a sticky situation on the roads, there are other instances when you’ll require proof of insurance. Buying a new car is an exciting experience, but before you get it on the roads, you’ll need a valid proof of insurance to register it first.
Or, if you’re renewing your license plate, the DMV will ask for proof of insurance. The same goes if you want to take out a motor finance deal. Most lenders will ask you for proof of insurance. The little proof of insurance card that can seem somewhat insignificant can be used multiple times a year.
As you can see, proof of insurance is essential. To avoid headaches and sometimes even fines, try and keep your proof of insurance in your motor. That way, if anything does happen, you’ll have it on hand to give to the relevant enforcement officers.