What is the purpose of a "Certificate of Insurance"?

What is the purpose of a "Certificate of Insurance"?

• A. To register a vehicle with the government.
• B. To provide proof of an accident.
• C. To prove that a vehicle has the required insurance coverage.
• D. To allow a vehicle owner to sell their vehicle.

Answer: (C)

A "Certificate of Insurance" serves as official documentation that confirms a vehicle has the necessary insurance coverage mandated by law. This document is typically issued by the insurance provider and contains essential details such as the policy number, coverage limits, and the duration of coverage. Having a Certificate of Insurance is crucial, as it assures law enforcement and other parties that a vehicle is insured, thus complying with provincial regulations. In the event of a traffic stop or when registering a vehicle, the certificate serves as valid proof of insurance, preventing potential fines or penalties for driving without adequate coverage. While other options may refer to relevant aspects of vehicle ownership or related circumstances, they do not capture the primary function of the Certificate of Insurance, which is specifically to demonstrate that insurance coverage is in place for the vehicle.

A "Certificate of Insurance" serves as official documentation that confirms a vehicle has the necessary insurance coverage mandated by law. This document is typically issued by the insurance provider and contains essential details such as the policy number, coverage limits, and the duration of coverage.

Having a Certificate of Insurance is crucial, as it assures law enforcement and other parties that a vehicle is insured, thus complying with provincial regulations. In the event of a traffic stop or when registering a vehicle, the certificate serves as valid proof of insurance, preventing potential fines or penalties for driving without adequate coverage.

While other options may refer to relevant aspects of vehicle ownership or related circumstances, they do not capture the primary function of the Certificate of Insurance, which is specifically to demonstrate that insurance coverage is in place for the vehicle.