How can a vehicle owner in Michigan demonstrate financial responsibility?

In Michigan, demonstrating financial responsibility primarily involves providing proof of insurance. This is a legal requirement for all vehicle owners and is intended to ensure that drivers can cover the costs associated with accidents, injuries, and damages that may occur while operating a vehicle. By maintaining a valid insurance policy, vehicle owners show that they have the financial means to pay for any potential liabilities resulting from their driving activities.

While paying vehicle taxes, having a driver’s license, and registering the vehicle are important aspects of vehicle ownership and operation, they do not directly demonstrate financial responsibility in the context of insurance coverage. Financial responsibility specifically pertains to the ability to handle financial obligations resulting from accidents, which is why proof of insurance is the correct answer in this scenario.