Proof of Insurance and Financial Responsibility

Proof of Insurance & FinancialProof of your insurance will be available in the Motor Vehicle Division Database (MVD), but if there is no electronic record at all then you should be ready to show some other proof for your insurance

  • Insurance Card :
    Those cards which are under the International Registration Plan (IRP) or self insured are considered as valid proofs for the car insurance. But just the car insurance cards are not considered to be the proof of your car insurance, state requires the carriers to give them and the car owners should always carry with them while driving.
  • Self-Insured Information :
    As a proof of financial responsibility you can use the certificate of self-insurance and self insured information card from safety Fire Commissioner or Office of Insurance when you insure your car yourself.
  • Insurance Binder :
    Your District Of Columbia car insurance will be issued a binder if at all you are buying the car insurance for the first time. The binder will be valid only for 30 days and this is one of the way to show the proof of your insurance.
  • Bill of Sale/Declaration Page :
    If you have purchased a new car, copy of the bill along with insurance declaration page can be provided as proof of insurance just for 30 days.
  • Shop for Car Insurance :
    1. Do not take hasty decisions by just seeing one car insurance company. Keep shopping regularly and take your time to check all the car insurance companies.
    2. To get the best combination of price and quality, contact as many car insurance companies you can and also the insurance agents.
    3. Plan yourself what you want before buying because later you should not end up buying something you do not require.
    4. Take a look at each company’s financial stability, underwriting practices, claim handling practices and policyholder services.
    5. Check about the discounts.

Is Your Auto Insurer on Strong Financial Legs?

Strong Foundation with Right InsuranceIt’s not enough to pick an auto insurer on the strength of their online car insurance quotes. Sure, this is a great way to gauge whether or not you’re going to be able to afford insurance for that fancy SUV you just got for a steal. But when it comes to the point of saying “Yes, I’ll go with this company” you’ve got to look beyond just comparing auto insurance quotes. What you really need to look at is the financial strength of the insurer.

What does the financial strength of the insurance company you’re doing business with have to do with it? Everything. Picture this scenario: two days after someone decides to make your day by t-boning you in an intersection, your car insurance company files for bankruptcy. Talk about your bad timing – in this circumstance you’ll be lucky to get a payout on your claim. But a company doesn’t have to be going under to experience difficulty coming up with the money to pay out.

For this reason, never just base your decision on their online car insurance quotes. Always make sure that the company you’re thinking of doing business with has the financial standing to be able to fork over the funds if and when the time comes. You can do this by using the online services of A.M. Best, an organization that ranks the financial strength of insurance companies. If an insurer receives any of the following 3 ratings, you can consider them a safe bet.

• Superior – A++ or A+ rating.
• Excellent – A or A- rating.
• Good – B++ or B+ rating.

If the insurance company has a rating any lower than this, you might be putting yourself at risk for not getting coverage when you need it the most.