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Also, the majority of states have passed automobile financial responsibility laws that require every driver to maintain sufficient funds to pay for damages caused to other drivers. Although some states allow drivers to Quotes Chimp funds on deposit with the Department of Motor Vehicles to demonstrate financial responsibility, automobile insurance is a more cost-effective option for most drivers. Each year, more states pass laws that require insurance companies to report policy cancellations electronically to the Department of Insurance or the Department of Motor Vehicles. If the state receives notification that a driver's policy has been canceled, the state will require the driver to provide proof of a replacement automobile insurance policy to avoid driver's license suspension and possible fines and penalties.
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