A state law requiring that all automobile drivers show proof that they can pay damages up to a minimum amount if involved in an auto accident. Varies from state to state but can be met by carrying a minimum amount of auto liability insurance. (See Compulsory auto insurance )

"Financial Responsibility Law" In Context

"Pickering also was cited for violation of the financial responsibility law and failure to exercise due care. The report said Pickering had been drinking and that Hankal was not wearing a seat belt. Pickering’s court date had not been set as of ..."