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Insurance & Documents

Every driver in The Bahamas must carry proof of both identity and insurance. These rules ensure that all vehicles on the road are properly licensed, insured, and accountable in the event of an accident.


Documents You Must Carry

When driving, you are legally required to have:

  • A valid driver’s licence
  • A current, active insurance certificate

These documents must be produced immediately when requested by a police officer [1] .


Validity of Insurance Policies

To licence a vehicle, the insurance certificate you present must be valid for at least six months from the date of application [2] .

In practice:

  • Insurance certificates are issued for one year.
  • A certificate that will expire in less than six months cannot be used to licence a vehicle.
  • This rule ensures that only active, long-term insurance policies support licensed vehicles on the road.

A policy must be renewed annually in your birth month [3] .

Early cancellation is tightly restricted. A policy may only be cancelled within its term if the vehicle is:

  • Scrapped
  • Sold, or
  • Transferred to another vehicle you own

If a policy is cancelled, the insured person must:

  1. Surrender the insurance certificate immediately to the insurer, and
  2. Notify the Road Traffic Controller within 5 days, providing proof of the reason [4] .

Failing to comply may lead to a fine of up to $2,500 or 3 months’ imprisonment. Insurers who fail to report cancellations must pay fines of not less than $5,000.


Failure to Produce Documents

If you cannot produce a valid licence or insurance certificate when asked:

  • Police may impound your vehicle until valid documents are shown [5]
  • A $300 release fee applies, in addition to presenting the proper documents
  • Vehicles left impounded for more than one year may be sold by the Commissioner of Police

Why It Matters

Carrying your licence and insurance is not optional — it is a legal requirement. These documents prove you are properly licensed and insured in case of an accident. Failing to produce them can leave you without a vehicle, paying high fines, and at risk of further penalties.


Frequently Asked Questions

What documents must I carry when driving in The Bahamas?
You must always carry a valid driver’s licence and a current, active insurance certificate. These must be produced immediately when requested by a police officer.
How long must my insurance policy last?
To licence a vehicle, your insurance certificate must be valid for at least six months from the date of application. Certificates are issued for one year and must be renewed annually in your birth month. A certificate that will expire in less than six months cannot be used to licence a vehicle.
What happens if I don’t have my insurance certificate in the car?
Police may impound your vehicle on the spot if you cannot produce a valid insurance certificate. You must provide the proper documents and pay a $300 release fee before the vehicle can be returned.
Can my insurance be cancelled early?
A policy cannot be cancelled early except in limited cases: if the vehicle is scrapped, sold, or transferred to another vehicle you own. If cancelled, you must surrender the certificate and notify the Road Traffic Controller within five days.
What are the penalties for failing to surrender a cancelled insurance certificate?
If you fail to surrender a cancelled insurance certificate, you may be fined up to $2,500 or imprisoned for three months. Insurers who fail to notify the Controller of cancellations must pay fines of not less than $5,000.

Footnotes

  1. Road Traffic Act (Ch. 220), s. 8 — All users of motor vehicles must be insured against third-party risks.
  2. Road Traffic Act (Ch. 220), s. 10(5) — Defines a 'policy of insurance' as being issued for not less than six months; covering notes may last up to 90 days.
  3. Road Traffic (Amendment) Act, 2024, s. 2 — Clarifies that policies cannot be cancelled by the insured within 6 months except in limited cases (scrapped, sold, or transferred), and must be renewed annually in the insured's birth month.
  4. Road Traffic (Amendment) Act, 2024, s. 3 — Requires surrender of certificate within 5 days of cancellation and mandates insurers to notify the Controller.
  5. Road Traffic (Amendment) Act, 2024, s. 5 (new s. 60A) — Police may impound vehicles if no valid insurance certificate or licence is produced; $300 release fee applies.
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