Why is "proof of insurance" necessary for vehicle registration?

Proof of insurance is essential for vehicle registration primarily because it is required by law to ensure that all vehicles on the road are covered by a minimum level of insurance. This legislation is in place to protect all road users by ensuring that in the event of an accident, drivers have the financial means to cover damages or injuries they may cause. This legal requirement helps reduce the burden on public funds and promotes responsibility among vehicle owners. Showing proof of insurance before registering a vehicle confirms that the owner is complying with these legal obligations, which is crucial for maintaining safety standards and protecting the rights of all road users.