California Auto Insurance Law

In the seemingly complex world of auto insurance, California law has changed the way that the local Department of Motor Vehicles verifies cover on all privately-owned cars. The changes, made in 2006, ensure that all cars driven on Californian roads and highways carry liability auto insurance so that financial liabilities to third-party drivers can be met. The laws also give the state the right to remove uninsured vehicles from the side of the road.

California auto insurance law makes it an obligation for all drivers to carry proof of financial responsibility, and this must be provided upon request by a law enforcement officer, whenever a vehicle registration is renewed or if the vehicle is involved in a road traffic accident. Although there are several different ways to prove financial responsibility, purchasing an auto insurance policy is the most common way of meeting obligations.

California auto insurance law requires all road users to carry the following levels of liability coverage under the California Insurance Code ยง11580.1b:

  • $15,000 worth of bodily injury liability per person
  • $30,000 worth of bodily injury liability per accident
  • $5,000 worth of property damage liability

Auto insurance law in California also allows road users to meet their financial liabilities using the following means:

  • A sum of cash deposited with the California Department of Motor Vehicles to the value of $35,000
  • A self-insurance certificate issued by the California Department of Motor Vehicles
  • A $35,000 surety bond

By understanding your obligations to California auto insurance law, drivers can eliminate the risk of driving and vehicle registration suspensions.