What does the minimum financial responsibility law require?

The minimum financial responsibility law establishes a legal requirement for vehicle owners to maintain a certain level of liability insurance. This law is designed to ensure that vehicle owners can cover the costs associated with damages or injuries that they may cause in an accident. By specifying the minimum amount of liability insurance that must be carried, the law protects both the driver and other individuals who may be affected by their driving. This helps to ensure that there are adequate financial resources available to cover claims resulting from traffic accidents, thereby promoting accountability and financial protection on the road.

The other options do not accurately reflect the purpose of the minimum financial responsibility law. For instance, it does not pertain to providing free insurance for rental vehicles or requiring renters to possess credit cards. Additionally, the law does not limit the number of vehicles one can rent, as its focus is on ensuring that vehicle owners maintain a baseline insurance coverage for financial responsibility in the event of accidents.