What is the meaning of 'financial responsibility' in motor vehicle law?

The term 'financial responsibility' in motor vehicle law primarily refers to the legal obligation of drivers to demonstrate their ability to pay for damages or injuries that may result from automobile accidents. This requirement ensures that drivers can cover costs associated with property damage, medical expenses, or liability claims if they are involved in an accident. Essentially, it serves as a form of protection for all parties involved, promoting accountability and financial security on the road.

This concept is typically satisfied through insurance coverage, such as liability insurance, which provides a safety net for drivers. In many jurisdictions, failing to meet this financial responsibility requirement can lead to penalties, such as fines, license suspension, or other legal repercussions.

The other choices do not accurately reflect the meaning of financial responsibility. For instance, the first choice implies that only commercial drivers are required to have a specific type of policy, while financial responsibility applies to all drivers. The third choice discusses a system for tracking violations, which is unrelated to the financial obligations of drivers. Lastly, placing a limit on the number of cars a driver can own doesn't address the need for financial assurance in the event of an accident.