Congratulations on earning the privilege of driving! But remember, like any other privilege, it can be suspended or taken away. Make sure you keep it by following the rules.
Knowing your responsibilities as a licensed driver could save you from a very expensive and embarrassing mistake. Everyone who drives an automobile has the responsibility to not only operate a vehicle safely, but to pay for injuries or damages caused while they are driving.
To remove drivers from the road who are unable to pay for such damages or injuries, all 50 states (and every Canadian province) have enacted financial responsibility laws.
Here’s how they work:
- If you have an accident involving bodily injury or substantial property damage, you must file a report with the proper state agency.
- You then may be required to present proof that you can pay damages up to certain minimum amounts stated in the law of the state or country in which the accident happened.
- You can satisfy the requirement by purchasing bodily injury and property damage liability insurance in the minimum amounts set by the state in which you keep your car.
- If you do not carry such insurance and your car is involved in an accident, you may be required to put up thousands of dollars in cash, or other assets, as proof that you are able to pay for the injuries and and damages.
- If you’re unable to pay, your right to drive may be be taken away until you satisfy any judgment against you and, in most states, provide proof of financial responsibility for the future.
Click to see Parent/Teen Driver Contract!