What information is required to comply with state mandatory insurance laws?

To comply with state mandatory insurance laws, it is essential for drivers to maintain minimum liability coverage, often expressed in terms such as 25/50/20. These numbers typically represent the financial limits of the insurance that a policyholder must carry for bodily injury and property damage. Specifically, the first number indicates the maximum payment for bodily injury per person injured in an accident, the second indicates the maximum for total bodily injuries in a single accident, and the third reflects the limit on property damage per accident.

This requirement ensures that individuals have adequate financial backing to compensate others for injuries or damages resulting from accidents they cause, thereby promoting responsible driving and protecting the public. States enact these laws to safeguard against uninsured drivers and reduce the financial burden placed on the victims of car accidents, ensuring there is a minimum standard of coverage that aligns with public policy goals.

While displaying proof of insurance and the language of the policy are important pieces of information regarding the insurance contract, they do not constitute the foundational requirement established by state laws for mandatory insurance. Similarly, a verbal agreement does not meet the standards that ensure protection and verification in the event of a claim or accident.