What is a Proof of Insurance Card and When Do You Need it?

What Is an Auto Insurance Card, and Why Does Having It Matter?

Proof of insurance, as the name implies, proves that you’ve bought an insurance policy for your vehicle.

Just as you’d need a certificate of insurance for a business, you must also have a proof of insurance card for your car. It’s against the law to drive without an active auto insurance policy in Illinois and other states.

There are two types of proof of insurance you can get: a physical card and a digital document. Here are the differences:

• Physical card: Your insurance company will mail you this card within a few days of buying or updating a policy. The card may be paper or plastic. You can usually download and print a temporary card to use until your new card arrives.

• Electronic card: Many insurance companies offer a digital insurance card you can access on your phone, such as a phone or tablet. Forty-nine states, as well as Washington, D.C., permit you to show an electronic proof of insurance. New Mexico is the only exception.

It’s important to always carry your proof of insurance with you when driving. Your current declarations page usually won’t serve as proof of insurance in most states. Neither will insurance payment receipts.

When Must You Show Proof of Coverage?

You will need to show your proof of auto insurance ID card in these situations:

• Vehicle registration: Most states ask you to show proof of insurance when registering a vehicle.

• Car accidents: After a car accident, you’ll have to exchange insurance information with the other driver. Without this information, you won’t be able to file a claim.

• Traffic stops: Police will usually ask for your driver’s license, registration, and proof of insurance during traffic stops with law enforcement. You may receive a ticket if you don’t have this information. Additionally, a police officer could have your car impounded, and you may face license suspension if you fail to show evidence of insurance.

• Renting a car: You’ll usually need to show that you have insurance to rent a vehicle. This is so the rental company knows you’re covered if you have an accident. Some rental car companies will sell you temporary insurance while driving one of their vehicles. This auto insurance liability coverage protects you from having to pay for damages if you have an accident.

Common Myths About Auto Policy Cards

Here are some of the most common myths about proof of insurance:

• Myth: Your proof of insurance always updates automatically after a policy change. Fact: You may need to request a new card after changing your policy.

• Myth: You can use your policy document as proof of insurance. Fact: Your policy document isn’t sufficient for proof of insurance coverage. You’ll need a physical or electronic proof of insurance card.

• Myth: An electronic copy of your insurance card isn’t good enough. Fact: Most states accept digital insurance cards and photos of your insurance card.

How to Add a Digital Insurance Card to Apple Wallet or Google Wallet

Every state besides New Mexico accepts Digital Insurance Id cards during a traffic stop. Saving your ID card to your smartphone's wallet is a smart idea. It will load instantly even without a cell signal.

• iPhone (Apple Wallet) - Install your insurance carrier's app. Sign in, open your ID card, tap Add to Apple Wallet. Preview the card then select Add in the top right hand corner.

• Android (Google Wallet) - Open your carrier's app and navigate to your policy ID card. Tap Add to Google Wallet. Older Apps may say "Save to Google Play", but the function is the same.

What Happens If you Can't Provide Proof of Coverage During a Traffic Stop?

This is a separate traffic violation than driving uninsured. Most states call this "Failure to provide proof of financial responsibility". Having an active auto insurance policy won't get you off the hook. If you can't prove that you have an active policy, some of the penalties you may face are listed below.

• Ticket and fines. The amount of the fine varies wildly depending on your state. For example in California the fine can start at $100-$200 but then shoot up to around $900 once every other fee is added on top. In Texas the first offense is a $175-$350 fine. If you get stopped in Tennessee then it's a flat $300. In New York the fine is $138 with no points. In Georgia, if you prove you had active insurance in court but failed to show it at a traffic stop the fine is only $25.

• Having your car towed. In Tennessee they've been allowed to tow the car right there on the spot since 2016. In California a judge can decide to have the car towed "for good cause" after a conviction under VC § 16029(c)(1). Having the car towed and then having to pay for the storage is very costly before you can get your car back.

• Extra court fees. If you can later sort out the insurance paperwork in court and prove that it was active on the day you got the ticket then the ticket is usually dismissed. You could be responsible for court costs though. For example in California it's $25. Florida is around $10 and the other states can be higher than that.

How To Get Your Digital or Physical Copy

There are three ways to get an insurance ID card:

1. After a policy purchase: When you buy an insurance policy, the carrier will send you a physical card in the mail. Many also allow you to print a copy of the card online.

2. Digital proof of insurance: Many insurance companies provide an electronic insurance card you can access on your phone.

3. Policy changes: If you add a new driver or car to your policy, the insurance provider will typically send you a new auto insurance card.

What Should You Do if You Lose Your Proof of Coverage?

You’ve lost your physical insurance card. Now what? First of all, don’t panic.

Replacing your card is generally quick and easy. To get a new card, simply call your insurance agent. They’ll mail you a new one in a few days. You should also contact your agent if you need to make policy changes.

While you wait for the card to arrive, you can use the digital version of your card or download and print a paper insurance card from the insurer’s website for your glove compartment.