Could I, don't pay for Car Liability Insurance?

Question

I have heard that instead of liability insurance, I can keep evidence of financial responsibility. Where can I get it?

Answer 1

Legal evidence of financial responsibility (in CA) include:

A motor vehicle liability insurance policy
A cash deposit of $35,000 with DMV
A DMV issued self-insurance certificate
A surety bond for $35,000 from a company licensed to do business in California

For information regarding cash deposits, or self insurance, please contact:

Department of Motor Vehicles
Financial Responsibility MS J237
PO BX 942884
Sacramento, CA 94284-0884
916-657-6520

To locate a company that issues surety bonds, please contact the Department of Insurance at 1-800-927-4357 or visit www.insurance.ca.gov.

Answer 2

Actually that all depends on what state you live in. When they ask for "Proof of financial responsibility" they mean your proof of insurance. In most states there is really no way around it.

But it's a good thing to have liability insurance. Proving your own "financial responsibility" isn't wise. Insurance companies have a whole lot more dollar resources than you will. There are many costs involved in having a car accident that as an individual it would be hard to pay for. Liability doesn't just cover your car, it covers property, medical and other collateral effects. Plus people who would otherwise claim against your insurance can sue you personally, and hold YOU liable for damages that normally an insurance company would cover.

Unless you've got about $250,000 hanging out in a swiss bank account somewhere, I wouldn't recommend that.

..Of course if you do, you can afford to buy insurance like the rest of us.

Answer 3

You really need liability insurance. Evidence of financial responsibility means you can show you have money in an account reserved for the purposes of an accident and that amount of money has to meet or exceed state minimum limits of liability.

Answer 4

Post a bond with the state. Or deposit cash or negotiable securities that have a value equivalent to the minimum liablity requirements. For example, if your state requires 20/40/20 liability coverage, you must deposit $60,000 in cash with the state.

Your insurance rates would have to be VERY high for that to be a good idea financially. But it's your money...

Answer 5

It is illegal to not have car insurance of any kind. Well in Montana it is anyway...I'm not sure about other states. If you were in a wreck it would be your fault even if you never caused the wreck...because you shouldn't have been driving without insurance. I have never heard of only needing to keep some evidence of financial responsibility. Most people just have liability insurance because it is the cheapest kind of insurance.

Answer 6

Your state will require a " Bond " as proof of financial responsibility. Contact your state board of Insurance.

Most states now require insurance.


If anyone finds out you will have every con artist and slip & Fall attorney in the state looking for you driving down the road.

If you have that kind of money then why would you not purchase insurance. It's not logical thinking.

Answer 7

It depends on the state....but you need to be aware......

If you are found to be at fault for an accident that causes someone to be injured, you are responsible for the cost of their healthcare. While most liability policies have a cap, I doubt you'd want to pay for their healthcare out-of-pocket (unless you are lucky enough to not have to worry about that kind of money).

Answer 8

I think this varies from state to state.

California used to take evidence of being able to pay for someone else's damage. Now it is mandatory to carry insurance since accidents cost so much.

Answer 9

You'll need to talk to your State Department of Motor Vehichles, because this is a "State to State" kind of regulation. Some states allow you to keep such "evidence of responsibility" on file, others don't.