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.
Can I Report a Driver Who Does Not Have Mandatory Auto Insurance?
Reader’s Question:
How can I report a person if I suspect him of driving here in Florida without the mandatory auto insurance policy?
Ally
Jacksonville, FL
There is an agency in Florida called the Florida Bureau of Financial Responsibility, where you could call and report another person who violates the mandatory auto insurance law. This agency is in charge of making sure that all registered drivers can guarantee financial responsibility for damages they may cause when operating a registered vehicle.
If you feel the need to report someone you suspect of driving without insurance, there are financial responsibility departments that you may call. Even if you’re not sure about the person’s auto insurance status, you may still report it to the agency. Do not feel guilty for causing the other person trouble because you may never know if the person he causes damage to in the future is you. Besides, you may think of it as part of your social responsibility to report anyone who may cause damage to another person and may face the situation unprepared.
Regardless of what state you’re located in, you can report a suspected uninsured person. Each state has its own department that handles this, and you may reach their hotline number to report this supposed violation. Otherwise, if you think that you can handle the situation, you may recommend to the person an auto insurance company or agent and try to convince him to get his vehicle insured before he gets caught.
How Much is The Ticket Cost For Driving Without Car Insurance?
Reader’s Question:
Does anyone here know how much I would pay for a ticket for driving with no insurance here in Corpus Christi, Texas?
Christie
Corpus Christi, TX
Hey, Christie of Corpus Christi, Texas. In Texas, like in most states, it is actually required for drivers to show some kind of proof that they can pay for any damages that they might cause in case they involve themselves in an accident. Most Texas drivers buy auto liability insurance for this purpose because this is actually the cheapest way. But the basic coverage may not be enough to guarantee enough financial protection for you and your car. The basic coverage in Texas is 20/40/15, which means that the law in Texas requires minimum coverage of $20,000 per injured person to a total of $40,000 for every person injured in an accident and $15,000 for the damages of property.
Now, when you buy an auto insurance policy, your insurance carrier will give you a proof-of-insurance card that you may show when asked by a law enforcement officer or if you’re going to register or renew your vehicle, or if you are getting or renewing your driver’s license or if you are having your car inspected.
If you are an uninsured motorist, and you are stopped by a traffic enforcement officer, Texas has corresponding penalties for this according to the state’s financial responsibility laws. For first offense, you may have to pay a fine of $175 to $350. The next convictions will be more of a hassle for you. You might pay from $350 to $1,000, and they could also suspend your driver’s license and impound your automobile.
So, Christie, I really suggest that you have your vehicle insured. It really comes in handy in times of need.
Car Repair Cost More Than My Insurance Company Estimate – Help!
Reader’s Question:
My wife just had her first accident, thank God nobody is hurt. At first I thought it was just a minor accident and the cost of damage for the repair is not that much. But now, I am thinking the other way around, after the repair shop in Chandler, Arizona send us the quote it was such a price and the insurance adjuster provided lesser amount telling us that this is only the collision coverage can cover for. Whew! Any idea, what else can we do?
Rob
Chandler, AZ
Let me start first with your Collision auto insurance coverage. It is a part of your total comprehensive auto insurance package. Now in your policy, if you can review it. It is agreed in there that the insurance company will carry all the damages and repairs but this is limited to the vehicle. There are times that the value of the vehicle is less than the cost of repair to the vehicle. Collision auto insurance covers the cost of damage and repairs but it doesn’t mean guarantee for replacement or replacement value.
The insurance adjuster only received the description of the damage of your car, he then seek for an estimate for repair of the said damage. Only that, it appears the estimates he had is lesser than the cost of repairs the shop provided to you. I think the amount that the insurance adjuster offered was correct.
The collision auto insurance coverage provided options for you. First, you can accept the offered amount go for the repair and shoulder the excess amount. Second, you can negotiate with your insurance adjuster, but if you are still unhappy with the outcome you can go to the third option. Third, file your complaint at the state insurance agency in Arizona. This agency will review your collision auto coverage and evaluate it with your insurance provider. Try to research online too for auto insurance options in your area. Insurance sites like this one will be able to route you to auto insurance rates comparison in your area.
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