Proof of "Financial Liability" to drive?

Question

As far as I know, there is no law saying you have to have insurance. The law instead says that you have to have proof of "Financial Liability" to drive, so if you're a Billionaire, do you still have to have insurance? Obviously if you're a billionaire, you are financially able to cover any liability that an insurance company would have been able to, but what counts as proof? If a billionaire drives around with a bank statement in the glove box and gets pulled over with no insurance, is he safe or does he get a ticket? Most insurance is limited to around $500k anyway, so if you have that in the bank, are you good? If your house is worth that in equity, what then?
Secondary question: why don't they just simplify it and change the law to "thou must have insurance to drive." Why pussyfoot around? This whole "financial liability nonsense makes me think may be it is illegal for the government to actually outright require insurance. Is it?

Answer 1

Most states require insurance and proof of it!

My state does not. However if you ever get picked up for DUI or some other major offense you have to provide an SR22 to the DMV for 5 years, and that tacks an extra $1,000 on your insurance.

In my state, if you get in an accident and don't have insurance, your license and registration is taken until you pay all the bills. Them you file an SR22!

If the state requires insurance and you don't have it, you get a ticket no matter who you are!

And the liability on the insurance is what the insurance has to pay. If you have deep pockets don't expect to settle for chump change!

Answer 2

People who can't pay for damage they cause carry liability insurance. People who are billionaires most likely can secure bonds with the state because they don't need insurance. So in that case, not all people need insurance. Everyone must show proof of whatever the state has accepted as you being able to cover any financial damages you may cause. The equity of a home can change at any moment so that is not a reliable source of money to cover future debt. In California, is is the Law to show that you can cover your damages. You must show proof at the time that you register your vehicle. Now, the the databases are somehow linked and they will know soon after your policy is cancelled. So yes. In Cali, your car can be impounded on the spot if you are shown to be uninsured.

Answer 3

In California, you have to have insurance (ie, proof of insurance that's acceptable to the DMV).

Many companies are self-insured, and they have a certificate in the car with a DMV registration number to indicate that self-insurance.

The problem with individuals "self-insuring" themselves is they can't guarantee that the funds will be available up to the required limit - it's a little different with a corporation. I believe individuals can also carry a statement from a bonding company which indicates (essentially) the same thing - proof of financial coverage...

California Deputy

Answer 4

The system operatives want one to demonstrate proof of financial responsibility, that is, they want one to protect the public. Obtaining insurance is the most popular option but by no means the only one at one's disposal. One can put up a bond to protect the public as well. In my STATE, and probably others, if one can demonstrate financial responsibility sufficiently to the Motor Vehicle Commissioner's satisfaction, one can be issued a Certificate of Financial Responsibility which one would then carry in one's glovebox. They are correct in not specifically requiring one to obtain insurance as that would prevent one from using other options we could/should be using instead.