• Make sure you carry proof of insurance."Police Car Lights" is Copyrighted by Flickr user: davidsonscott15 (Scott Davidson) under the Creative Commons Attribution license.
  
  

Liability Insurance

• Liability insurance covers damage you cause to someone else with your vehicle. It might be property damage or personal injury.
  
  

Required

• As of 2009, liability insurance is a requirement in all states except Wisconsin and New Hampshire.
  
  

Wisconsin

• If you live in Wisconsin, the law changes June 1, 2010, when liability insurance becomes mandatory.
  
  

Penalties

• Most states invoke a fine and points to your license for driving without insurance. Almost all states revoke your license until you prove financial responsibility.
  
  

Parked

• Even if you don't drive your vehicle but leave it parked on the street, if another car hits it and you don't have insurance, you're in trouble.
  
  

Full Coverage

• Legally, full coverage may be a requirement of a lender. If you don't have insurance on your vehicle, your lender legally puts comprehensive and collision insurance on the car. You pay the premium. Normally the cost is quite inflated.