A number of states do not require that actual proof of insurance is readily available, but it can save a bit of confusion to carry it at all times while operating an automobile. In most cases motorists who are involved in traffic accidents will need to exchange policy information in order to have their insurers contact one another and help sort out and handle claims; not carrying this documentation can result in a delay in compensation.

One other wise reason it is a good idea to always carry documents showing coverage is that each state has laws differing from that of which a particular person may reside; therefore they may be required to provide such documentation if requested by a law enforcement officer while operating an automobile in another state.

It is also wise to stay on top of the latest coverage requirements as well; beginning today, June 1, 2010, according to the Wisconsin Office of the Commissioner of Insurance all motorists will be required to carry proof or they can face penalties. Motorists unable to produce evidence of coverage can face a fine of $10 which may not sound like much, but not being able to prove the vehicle is insured can result in a fine of up to $500 and providing false documentation can lead to a $5,000 fine.

It can be a lot cheaper to maintain coverage in many instances and carrying evidence can help avoid the inconvenience of having to make a trip to the appropriate department to prove that the vehicle was covered at the time a citation was received. In addition, driving uninsured is never worth the risk and if found to be at fault for causing an accident while doing so, the legal and financial consequences may be devastating.