You're driving late at night on the Garden State Parkway and get pulled over by the police. And the officer asks to see your driver's license, vehicle registration, and proof of insurance.
You might feel puzzled over a proof of insurance. In a nutshell, a proof of insurance is a type of insurance ID card from your insurer. It's tangible proof that your car insurance is up-to-date and valid. It also shows that you carry coverage that meets the state's minimum requirements.
Why you need proof of insurance
While you know full well that you have auto coverage, proof of insurance is tangible proof that confirms your car insurance meets the state's minimum liability coverage, and is current. It's an easy way for law enforcement to get a quick glance at your car insurance without having to call your insurance company or dig around for documents with a lot of legal jargon.
Here are some other common scenarios for which you'll need your proof of insurance:
- To exchange information with other drivers after a car accident.
- Registering a new car.
- Renewing your license plate.
A proof of insurance generally needs to include the following:
- Name of policyholder.
- Your policy number.
- Effective date of your policy.
- Covered vehicle.
Car insurance coverage is required in most states. In turn, you'll need to carry proof of insurance at all times with you in the car. Otherwise, you might be hit with a fine.
When you'll need an SR-22
Besides a proof of insurance ID card, you might be required to have an SR-22 form. This also goes by a certificate of financial responsibility. For instance, you've been convicted for a DWI or DUI, or you've been slapped with a spate of speeding tickets within a short time frame. The judge may then order you to get an SR-22.
A SR-22 is a form that you may need to file. It proves that you meet the minimum auto liability requirements for your state. While some states (including New Jersey) do not require them, most states do.
How to get your proof of insurance
There are several ways you can get your proof of insurance card from your car insurance company:
- By Mail. Your insurance company will mail your proof of insurance. Usually you'll receive several copies, one to store in the glove compartment of your car, and the other in your wallet or purse.
- Electronically. You might also be sent digital versions of your proof of insurance cards via email. From there, you can download them to your phone or computer and print them.
Forty-nine states and the District of Columbia let you pull up an electronic copy of your proof of insurance rather than a physical copy. The only state where the law prohibits you from doing this is New Mexico.
In New Jersey, you can provide either a paper copy, or you can pull up a digital version from your car insurance company's website, mobile app, tablet or a file or photo from your phone.
While legally you aren't required to have a physical copy, it's a good idea to keep a photo of it on your cell phone and a tangible copy in your car. That way, in case you're in an area with spotty Wi-Fi connectivity or your cell phone's power is low, you'll have a backup.
Most states, including the state of New Jersey, require that you carry minimum car insurance. There are two options to choose from: the "standard" policy, and the "basic" policy.
What happens when you can’t show proof of insurance?
If you can't show proof of insurance, you're subject to paying fines, serving community service, your license being suspended, and insurance surcharges. When it comes to insurance fraud, which is giving false info to your insurance company when filing a claim or applying for insurance, you're looking at severe penalties. This includes incarceration, up to $15,000 in fines, or losing your driver license.
What to do if you lost your proof of insurance
If you misplace or damage your proof of insurance card, it's important to replace it as soon as possible. That way, should a situation arise where you need to show your card, you'll have it handy. Plus, you won't be on the hook for any fines.
You can usually easily request hard copies from your insurance company to send you in the mail. Otherwise, you can typically find your card by logging into your account or the insurer's mobile app—if they have one — and downloading an electronic copy.
Because you can obtain your proof of insurance electronically, there typically isn't a window where you're not waiting for your card to arrive in the mail.
Proof of insurance example
Car insurance companies must give you a paper or electronic version of your proof of insurance for you to show police at a traffic stop. A proof of insurance card for each car under your policy is required.
*Sample from the New York State Department of Motor Vehicles.
The front of the card must include:
- Name of the insurance company.
- Address of insurance company (or agency issuing the card).
- Insurance company code.
- Insured's name and address.
- Policy number.
- Effective date.
- Expiration date.
- Make and model of car.
- VIN of car.
Having a proof of insurance in your car, wallet or phone is a must-have. Otherwise, you could get hit with a hefty fine, not to mention the inconvenience of not having your car insurance information handy when you need it.
This story was written by NJ Personal Finance, a partner of NJ.com. The information presented here is created independently from the NJ.com editorial staff, and purchases made through links in this article may result in NJ.com earning a commission.
