Definitions for "Financial Responsibility Laws"
State laws that require owners or operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable. Insurance is the usual method for providing this evidence to the state.
Legislation that requires automobile owners to provide evidence of their ability to pay damages up to certain required levels.
State laws requiring drivers to maintain enough insurance to cover accidental losses to others. Law and limits vary state-by-state.