Tag Archives: Mandatory insurance

MO Vehicle liability insurance coverage explained

Insurance. It’s something we hate to pay for until we need it.

Mandatory Car Insurance

Each state has different requirements for automobile insurance. In Missouri, all motor vehicle operators and owners are required to have liability insurance, which covers the policyholder’s legal liability from injuries to others and damages to their property. The technical term for this is Financial Responsibility. Failure to have Proof of Insurance can result in a ticket and four points on your license. 

Minimum Insurance Coverage

Missouri has a minimum coverage requirement when it comes to liability insurance. Liability insurance covers you when injuries or property damage to others are a result of your actions and negligence. The minimum level of coverage required is $25,000 per person for bodily injury; $50,000 per crash for bodily injury; and $10,000 per crash for property damage. You also are required to have uninsured motorist coverage of $25,000 for bodily injury per person and $50,000 for bodily injury per crash. This last coverage is used in cases where another driver hits you but does not have insurance of their own or a driver hits you and drives away from the scene.

What Counts as Proof of Coverage?

To get people to buy coverage, the state mandates that vehicle owners show proof of insurance when it comes to registering their vehicle or renewing license plates.

When you go into the Missouri Department of Motor Vehicles, you have options to show your insurance coverage: a copy or original of your liability insurance policy; a paid insurance receipt showing the policy information; an ID card issued by the department when a surety bond, real estate bond, or security is filed with the department; a certificate of self-insurance from the Department; or a hand held electronic device showing your policy.

Other Insurance Options

Surprisingly, insurance coverage from an insurance company is not the only way to meet the states coverage requirements. There is self-insurance, which if you have 25 vehicles and you can show you will pay for damage caused by your vehicles. Or you can make a deposit of $60,000 cash with the State Treasurer, which will issue you a certificate of self-insurance.

Finally, another option is the use of Surety bond, Real Estate bond, Certificate of Deposit, or some other Negotiable Security. If you can show $60,000 (or $120,000 if a real estate bond) to the Department of Revenue, the department will issue you a certificate of self-insurance as proof of insurance.

In a nutshell, these are the basic ways to obtain the required amount of liability insurance in order to drive motor vehicles in Missouri. Commercial trucking drivers must meet different requirements of insurance coverage.