California Auto Insurance Laws

As per California auto insurance laws, all drivers in this state must carry a vehicle insurance policy with at least the state specified minimum coverage for injuries and property damage. The California insurance code also explains the provisions regarding proof of insurance and vehicle registration.

Minimum Liability Insurance Coverage

There are basically two types of coverage that you must purchase with your policy – bodily injury coverage and property damage coverage. The minimum legal requirement for property damage coverage is $5000. This coverage pays for the damage caused to the properties of other parties. The minimum legal limit for bodily injury coverage includes $30000 per accident (for injuries caused to all parties) and at least $15000 per individual.

Proof Of Insurance

As per California auto insurance laws, you must carry proper proof of insurance all the time, especially while you are driving a vehicle. You can be asked to show the certificate that you insured any time. For example, in case of a traffic law violation, a traffic official may stop you and ask you to show the proof. Besides that, you are also asked to show the proof of auto insurance at the time of vehicle registration. The laws however also provide you an option to get your vehicle self-insured. If you opt for this option, you must carry a letter authorized by the California department of motor vehicles (DMV).

Financial Responsibility

California auto insurance laws also require drivers to provide financial responsibility in cases of auto accidents. The main objective behind this financial responsibility law is to remove uninsured vehicles from the roads of this state. You can meet the legal requirements in this regard by obtaining a surety bond or a certificate of self insurance from DMV for $35000. Alternatively, you can also make a cash deposit of $35000 with the DMV. But, the most common method is to obtain an insurance policy with the state specified minimum liability and property damage coverage.

Non compliance of California auto insurance laws will attract penalties that often include suspension of vehicle registration as well as of your driving license.