Although auto insurance continues to rise in price, increasingly expensive premiums are no excuse for failing to purchase a valid policy. It’s important to note that if you have no auto insurance in California, you’ll not only be doing yourself a disservice but you’ll also be increasing the price of coverage of every other road user throughout the state.
If you have no auto insurance in California, the losses accrued by the carriers eventually gets passed back to paying customers and this result in a vicious circle as premiums continue to rise. As auto insurance gets more expensive, the more people try to avoid paying for it. The more people that avoid paying for auto insurance, the more expensive it becomes again.
To encourage people to purchase auto insurance, punishments for carrying no auto insurance in California have increased significantly in recent times. Drivers who refuse to purchase coverage can be easily located through a central database operated by the local Department of Motor Vehicles. The database logs all vehicle registrations and it’s relatively easy to track down road users who have no auto insurance in California.
If you are caught without a valid policy, the Department of Motor Vehicles can recall your vehicle registration, revoke your driving privileges and even remove your vehicle from a stationary position at the roadside and impound it if you have no auto insurance in California. If coverage hasn’t been purchased within a specified timeframe, the department reserves the right to crush the vehicle.