If you’re involved in a car accident, get pulled over, or need to register a vehicle, you’ll have to prove that you have valid auto insurance coverage.

When you set up your car insurance policy, your insurer likely mailed you an insurance ID card to keep in your glove compartment. Many insurance companies also provide electronic proof of insurance via their mobile app.

Having proof of car insurance is a relatively easy requirement to comply with — but it’s extremely important. Here’s what you need to know about getting proof of coverage — plus the consequences you could face if you don’t provide your insurance information when it’s required.

What is a car insurance card?

A car insurance card is a document that contains key details about your auto insurance policy. When you set up or renew an auto insurance policy, your insurer may provide this document as a physical card, a digital card, or, in many cases, both. You can also often obtain it yourself as a printout from your insurer’s website.

The primary purpose of a car insurance card is to provide proof of coverage in situations where you need to show that you carry at least the minimum amount of liability car insurance required by state law. You might need to show your insurance card during:

• Traffic stops

• Accidents

• Vehicle registrations

• Car inspections

• Car rentals

Information on a car insurance card

It’s common for a car insurance card to include:

• The insurance company name, address, phone number, company registration number, and more

• Your policy number

• Policy dates (effective date and expiration date)

• Vehicle details: make and model of your vehicle and the VIN number

• Policyholders information, aka named insured drivers

What counts as proof of insurance?

As mentioned, many car insurance companies provide you with physical and digital insurance cards when you set up, renew, or switch your auto insurance policy. However, your state of residence determines whether you can use an electronic copy of your auto insurance card during a traffic stop or if you’re required to produce a physical copy.

According to Allstate, the only state that currently doesn’t accept digital proof of insurance is New Mexico. All 49 other states and the District of Columbia will allow drivers to show physical or digital proof of insurance. It’s also worth noting that Massachusetts drivers have proof of insurance included on their vehicle’s registration documentation.

Progressive also points out that if you live in a state that accepts digital proof of insurance, you should be able to use that to register a vehicle at the DMV or BMV. However, you might want to bring physical proof of insurance as well to be safe.

A lender, lienholder, or leasing company may also request proof of insurance to confirm that you carry full coverage on a vehicle you’re financing or leasing. A car insurance card usually doesn’t show details about the types of auto insurance you carry or your insurance limits. Instead, you may need to share your car insurance policy’s declaration’s page with a lender (or anyone else) that requires these details.

Importance of an car insurance card

Having proof of insurance matters because almost every state requires drivers to maintain coverage to legally drive. If you’re caught driving without proof of insurance, either because you’re in an accident or you’re pulled over, law enforcement officers will typically assume you have no insurance.

The consequences of driving without insurance can be severe and may include suspension of your driver’s license, registration and/or license plates; fines and reinstatement fees; and even jail time in some states. You would also be personally liable for any property damage or injuries that occur if you’re at fault in an accident.

Driving without proof of insurance when you actually do have coverage in place is also problematic. The specific ramifications vary from state to state, and you can check with your state department of motor vehicles to learn more about your home state. In the meantime, here are a few examples.

• California: California requires all drivers to carry proof of insurance and show it to any law enforcement officer who requests it. However, if you receive a ticket for no proof of insurance when you indeed had insurance coverage at the time, you might be able to get that citation dismissed. You can show a copy of your insurance card, insurance policy, or letter from your insurance company matching the date of your ticket.

• Colorado: You may be able to receive a dismissal of a No Proof of Insurance ticket in Colorado if you can provide proof of insurance after the fact in the form of a letter from your insurance company. Otherwise, you could face a minimum fine of $500 for your first offense and a minimum fine of $1,000 for your second offense. You may also have your license suspended for four to eight months, and you could have to serve up to 40 hours of community service.

• Texas: If you receive a ticket in Texas for Failure to Maintain Financial Responsibility (aka driving without insurance), you can request the court to dismiss the citation if you can provide proof of insurance within 20 days. If you can’t show proof of insurance, you could face fines of $175 to $350. Second offenses carry fines of $350 to over $1,000 plus the potential suspension of driving privileges and vehicle registration for up to two years.

Additional considerations

Keep in mind that if you have multiple vehicles, it’s a good idea to keep a printed insurance card in the glove box of each car. Although you may have a digital copy of your insurance card on your mobile device, other drivers who borrow your vehicle also need proof of insurance. Also, if you ever drive through a state that requires a physical insurance card or have a problem accessing your digital insurance card, it’s good to have a backup.

If you rent a car, be sure to keep your rental agreement in the vehicle at all times. You could need this information to provide proof of insurance — either your personal car insurance policy details or supplemental rental car insurance you purchased — if a law enforcement officer requests it.

Educating yourself on insurance requirements

It’s important to understand your state’s minimum car insurance coverage requirements. Most states require you to have a minimum amount of liability car insurance to operate a motor vehicle. However, it’s also important to note that the minimum coverage limits might not be enough to provide adequate financial protection if you’re in a serious accident.

To that end, you may want to consider comprehensive car insurance and collision car insurance as well (together with your liability insurance known as full coverage). If you’re financing or leasing your current vehicle, your lender or leasing company may require these additional coverages.

No matter what type of insurance you carry, it’s important to keep proof of insurance in your vehicle.