Financial Responsibility Laws

Financial responsibility laws require drivers to demonstrate that they can pay for damages they cause in an auto accident.

Most commonly, this is satisfied by:

• Carrying at least the minimum required auto liability insurance set by the state.

In some jurisdictions, alternatives can include:

• Posting a bond
• Making a cash deposit with the state
• Self-insuring under specific criteria

---

Relationship to Minimum Insurance Requirements

The state minimum auto insurance requirements in the ru3.us datasets are a practical expression of financial responsibility laws: they define the minimum liability limits that satisfy those laws for most drivers.

See:

• Minimum Auto Insurance Requirements by State – Overview
• Minimum Liability Dataset

---

Related Terms

• Bodily Injury Liability
• Property Damage Liability