Car Insurance or Proof of Financial Liability

jaylon · #1 05-13-2005, 12:06 PM

Since the state owns and insures every vehicle that is registered in that particular state, and we are only reinsuring the vehicle to save them the hassle of actually having to pay for their property; wouldn't writing a bond be smarter than having auto insurance? And if I'm correct there is no law riquiring anyone to have "Automobile Insurance" but to the contrary - proof of financial libility.

theghost · #2 05-13-2005, 02:30 PM

You may be on to something here jaylon. As it stands in the statutes in Illinois, one only needs to prove financial responsibilty to the insurance commissioner anyway, I believe a bond would do the trick. Even an affidavit stating you would take responsibilty should suffice. I'll have to do some research here.

logos · #3 05-17-2005, 03:20 AM

I remember in my old state of Connecticut one could either obtain insurance or demonstrate financial responsibility to the DMV Commissioner whereupon one could obtain a Certificate of Financial Responsibility (I think that's what it was called). I think I had their statement or application file and it was less than half a page in length--very little info was on it.

Unfortunately, I can no longer find this info on their "new and improved" website. They only mention SR-22's which isn't the same thing.

I think this is one of those situations that requires one to talk to someone at the DMV.

fulltitle · #4 07-02-2005, 08:01 PM

Thing is that one or more States may actually provide for a means for insuring a fleet of vehicles or perhaps even one by putting down something like $20,000 into a fund or something like that. Now who knows there could be various options as to how to come up with the...funds.

weasel · #5 08-03-2005, 03:29 PM

I talked to my insurance friend, and the only thing her superiors told her about alternatives was to post 35,000dollars as a bond against any collisions/damages. Which is bunk.

#6 08-03-2005, 07:44 PM

look up this case law, state MUST give due process in the insurance matter. important case. (bell vs burson)

BELL

v.

BURSON, DIRECTOR, GEORGIA DEPARTMENT OF PUBLIC SAFETY

weasel · #7 08-04-2005, 11:03 AM

Thanks a load, kgod. that's a great decision

Leiahi · #8 08-14-2005, 03:45 AM

Hey guys, I found this a few months back regarding the law in Hawaii. Note the titling, and how they all fall down... it may be similarly listed in your state.

Hawaii Administrative Rules
Title 16
Department of Commerce and Consumer Affairs
Chapter 23
Motor Vehicle Insurance Law

They do go on to say exactly what is mentioned in this thread. A Bond sounds good. Our's is for $25K.