
California Car Insurance
Requirements
The
purpose of the law is to ensure that vehicles driven on
California roads have liability insurance that provides
financial responsibility for any damage or injury caused by a
traffic accident, regardless of fault, and to remove uninsured
vehicles from the highways.
California
requires that drivers and vehicle owners carry the following
minimum monetary limits:
* $15,000 for injury or
death of 1 person per accident
* $30,000 for
injury or death of 2 or more persons per accident
* $5,000 for
any property damage per accident
Evidence
of financial responsibility must be carried at all times in the
vehicle. Most Californians maintain financial responsibility
through insurance companies, which provide the policy holder
with an identification card to be used as evidence of coverage.
The card must state the insurance company's name and address,
the period of coverage, and policy number.
Liability
insurance compensates a person other than the policy holder for
personal injury or property damage (comprehensive or collision
insurance does not meet vehicle financial responsibility
requirements).
Persons
operating a vehicle in this state who are unlicensed or have an
invalid California or out-of-state driver license are subject
to the same financial responsibility laws as valid California
licensed drivers.
Financial
responsibility must be obtained and maintained on any vehicle
operated or parked on California roadways and must be provided
as specified below:
* When requested by law
enforcement
* When renewing
vehicle registration (if requested)
* When the
vehicle is involved in a traffic accident
* Within 30
days of receiving a registration card for a newly acquired
vehicle
* Within 45
days of the cancellation of a policy for a currently registered
vehicle
You must
carry evidence of financial responsibility (proof of insurance)
in your vehicle at all times.
Types of financial
responsibility
* A motor vehicle liability
insurance policy
* A cash
deposit of $35,000 with DMV
* A DMV issued
self-insurance certificate
* A surety bond
for $35,000 from a company licensed to do business in
California
If you
fail to maintain financial responsibility
* Your driving privilege
may be suspended. If you are involved in an accident and cannot
provide evidence of financial responsibility, you may lose your
driving privilege for up to one
year.
* Registration
of your vehicle will be subject to suspension (effectiveOctober
1, 2006). DMV will begin the process to suspend the
registration of your vehicle if liability insurance is
cancelled and a replacement policy is not submitted within 45
days, or your insurance company has not electronically provided
evidence of insurance within 30 days of a registration card
being issued on a newly acquired vehicle, or if you provide
false evidence of insurance.
* You may be
cited. Failure to provide evidence of financial responsibility
when requested by a peace officer may result in a citation with
fines that could reach $1,000 or more. (DMV cannot clear or
sign citations relating to financial responsibility. Only a
court can clear or sign these citations).
* Your vehicle
may be impounded. Failure to provide evidence of financial
responsibility may result in your vehicle being impounded, in
addition to any fines.
* You may be
personally liable for damages. If you contribute to the cause
of an accident and cannot provide evidence of financial
responsibility, you may be forced to compensate the other party
for any injuries and damages.
Note: State Car Insurance regulations
can change. Please check with your state's Motor Vehicle
Department for the most current
regulations.
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