If a vehicle is to be titled out of state and the purchaser lacks liability insurance, what is required?

In the scenario where a vehicle is to be titled out of state and the purchaser does not have liability insurance, the collection of 1/12 of the uninsured motorist fee is required. This fee is typically charged to ensure that there is some form of financial responsibility in the event of an accident involving an uninsured driver. It helps protect both the driver and others on the road from the potential financial repercussions of not having sufficient insurance coverage.

This policy underscores the importance of maintaining a level of protection for all drivers, as it creates a safety net in situations where unforeseen accidents occur. Collecting this fee allows the state to help mitigate the risk posed by uninsured motorists, thereby enforcing accountability and financial responsibility on new vehicle owners.

The other options do not directly address the requirement linked to uninsured motorists. For instance, registration fees may be necessary for vehicle registration but do not specifically relate to the absence of liability insurance in this context. Similarly, proof of income does not impact the titling process related to insurance status, and permanent tags are typically issued upon receipt of proper documentation and fees, which do not specifically involve uninsured motorist fees.