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Mandatory Insurance (Chapter 13)

TL;DR

Insurance proves financial responsibility; avoid lapses and keep proof handy—post-incident documentation helps claims.

Scope

Foundations of financial responsibility, insurance proof, lapses, and incident handling. Verify Missouri minimum coverage figures.

Learning Objectives

  • Understand purpose of mandatory insurance.
  • Recognize consequences of lapses.
  • Know basic post-incident documentation needs.
  • Implement strategies to maintain continuous coverage.

1. Financial Responsibility

Insurance provides liability protection; required minimums ensure base compensation capability (confirm actual limits in official materials).

Visual: Basic coverage components

Liability coverage protects others' injuries and property; optional coverages add protection.
Minimum liability = baseline protection for others; consider higher limits and optional coverages.

2. Proof of Insurance

Carry physical or digital card; must present during traffic stops, registration, certain crashes.

3. Lapses & Consequences

  • Possible fines.
  • Registration or license impacts.
  • Increased future premiums.

4. Maintaining Coverage

  • Automatic payment setup.
  • Promptly update address or vehicle changes.
  • Periodic policy review for adequate limits.

5. After an Incident

  • Ensure safety, exchange information.
  • Document: time, location, conditions.
  • Contact insurer promptly.

Quick Self-Check

  • Why is liability coverage mandated?
  • What happens if coverage lapses?
  • Why document incident details?

Proceed to quiz.

3 things to remember

  • Minimums set a floor, not a ceiling—limits can be increased for protection.
  • Address/payment updates prevent accidental lapses.
  • After a crash: ensure safety, exchange info, document details, notify insurer.

Quick Flashcards

Quick Review

What is the purpose of mandatory insurance? To demonstrate financial responsibility for potential damages.
Name one consequence of a lapse. Fines, registration or license impacts, or higher future premiums.
One post-incident best practice? Document time, location, and conditions; contact your insurer promptly.