Financial Responsibility Law?

Reader’s Question:

What does financial responsibility law mean?

James

Birmingham, AL

A “financial responsibility” law means that you are required by the state to show proof that you have the ability to pay for the accident or damages caused by an accident or if you have been convicted of traffic infraction.

The financial responsibility law will not require a person to acquire insurance or any type of financial responsibility during your registration of your car.

If you get involved in an accident or convicted of traffic violation and you fail to demonstrate the required level of financial responsibility, your drivers license may be suspended or your car registration may be revoked.

The financial responsibility law requirements is not based on faults. In the event of an accident, all drivers involved in the accident must show proof of financial responsibility. If they fail to show proof of financial responsibility, this may result harsh penalties.

Getting car insurance policy is the most common way to adhere to this financial responsibility law.