Plates would expire at the end of the insurance coverage period, and licensees would need to return their plates to their insurance office to receive a refund on their premiums. Vehicles driving without insurance would thus be easy to spot because they would not have license plates, or the plates would be past the marked expiration date. This led Massachusetts and Connecticut to create the first financial responsibility and compulsory insurance laws. Connecticut's 1925 financial responsibility law required any vehicle owner involved in a collision with damages over $100 to prove "financial responsibility to satisfy any claim for damages, by reason of personal injury, to, or death of, any person, of at least $10,000. " This early financial responsibility requirement only required vehicle owners to prove financial responsibility after their first collision. Massachusetts also introduced a law to address the problem of collisions, but theirs was a compulsory insurance, not financial responsibility law. It required automotive liability insurance as a prerequisite to vehicle registration. Opponents of compulsory insurance believe that it is not the best way to allocate risk among drivers. Arizona, Mississippi, New Hampshire, and Virginia do not require motor vehicle insurance. In Arizona, drivers can opt to deposit $40,000 to the State Treasurer in the form of a security deposit, cash, or bond. In Mississippi, drivers can opt to utilize a cash, security deposit, or bond in the amount of the state minimums. " Those are issues that each family has to settle according to its own rules and dynamics; but if you want a higher level of control in those first years or months your teen is behind the wheel, this is the program to provide it.

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Again, a large number of drivers choose instead to keep money on hand for use in the event of a parts malfunction or breakdown of the car or truck they depend on for daily transportation.