In every state, drivers are required to demonstrate the ability to pay up to a certain amount to cover their liability if they are involved in a motor vehicle accident. These laws are sometimes called "financial responsibility" laws, because while not all states specifically require that drivers carry liability insurance from an insurance company, all states do require some form of proof of financial responsibility.

In states that do not specifically require motor vehicle drivers to show proof of liability insurance in order to comply with "financial responsibility" laws, other acceptable forms of proving responsibility include:

• Self-insurance certification
• Certificates of deposit
• Surety bonds.

Laws in most states differentiate between driving a vehicle that is not insured (or without adequate financial responsibility), and driving a vehicle without proof that the vehicle is insured (i.e. when a driver of a properly insured vehicle fails to carry proof of a valid insurance policy).

Across all states and D.C., penalties for a first-time offense for driving without insurance range from the imposition of a $100 fine, to a one-year driver's license suspension.