Safety Responsibility Law

What Does Safety Responsibility Law Mean?

The Safety Responsibility Law aims to protect individuals who suffer damages or injuries in accidents caused by uninsured motorists. Enacted in 1945, the program provides an incentive for motorists to carry liability insurance or demonstrate the financial ability to cover crash damages independently. This encourages the purchase of liability insurance.

Additionally, the law revokes the driver’s registration and license of uninsured drivers or car owners who cause an accident and fail to pay for the damages and injuries they cause to individuals or property. As a result, even if the owner is not driving the uninsured vehicle, they may still be held liable and have their license suspended.

The Safety Responsibility Law is also known as the Financial Responsibility Law.

Insuranceopedia Explains Safety Responsibility Law

Operating a motor vehicle on public roadways is inherently hazardous, with a high potential for causing injury or property damage to both oneself and others. As a result, most jurisdictions have enacted some form of safety responsibility laws to ensure that all vehicle operators and owners can meet their obligations to others if they are found responsible for bodily injury or property damage.

These laws work by requiring or incentivizing drivers or vehicle owners to either carry adequate liability insurance or prove they have the financial means (through money or assets) to compensate third parties for losses.

Surprisingly, not all U.S. states mandate compulsory automobile insurance. For instance, New Hampshire and Virginia do not require drivers to have insurance. However, the safety responsibility law applies to all motor vehicle owners and those involved in reported accidents across all 50 states. The process begins when a crash is reported to the Crash Records Unit (CRU) of the State Patrol. If all motorists involved in the accident are insured, no action is taken.

If the CRU determines that one motorist is uninsured, the other parties involved are notified and can invoke the sanctions of the law for any injuries or damages incurred. Once the damages are substantiated, the Uninsured Motorist Unit sends a notice of suspension to the at-fault owner of the uninsured vehicle. The owner will not face suspension unless they deposit an amount to cover the damages or request a hearing if they are unable to pay.