California laws require financial responsibility (popularly called insurance) for all vehicles used in the state. The insurance serves as a guarantee that vehicle owners are capable of paying for damages or injuries if they get involved in auto-related accidents. Additionally, this requirement also safeguards their interest in that it lessens the financial burden associated with car collisions. 

You must have proof of financial responsibility with you or in your vehicle all the time. This is because you need to present it when you get involved in a vehicle accident and when a law enforcement officer requests to see it. This also needs to be presented when you renew the registration of your vehicle. 

Failure to present proof of insurance can mean getting a ticket or getting fined. Meanwhile, if you have no insurance at all and you are caught driving, you may be cited, your license may be suspended, or your vehicle may get impounded. Moreover, you may be personally liable to pay for damages and/or injuries if you get embroiled in an accident. 

What Types of Auto Insurance Are Required in California?

At the very least, you should have motor vehicle or automobile liability insurance. This type of insurance already includes bodily injury liability coverage and property damage liability coverage for third parties. The minimum coverage accepted for an automobile liability insurance is $5,000 for vehicle damages, $15,000 for injury or death involving a single person and $30,000 for injuries or deaths involving multiple persons. 

Keep in mind, automobile liability insurance only applies to third parties. You cannot use it to cover for your injuries or damages to your vehicle. You would have to get a different type of insurance for that such as a personal injury protection insurance.

Informing the DMV About Your Insurance

California laws mandate insurance companies to electronically send copies of the insurance information of private-use vehicles to the DMV. Meanwhile, you are required to provide proof of financial responsibility like an ID card from the insurance company each time you renew your vehicle’s registration. 

Moreover, it also your responsibility to notify the DMV before you cancel your insurance. Your registration may get suspended if you fail to do this.

To learn more about California vehicle insurance requirements, you can visit the CA DMV website.

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