California drivers need to have a basic understanding of the auto insurance requirements. Insurance companies are required by law to report to the CA Department of Motor Vehicles confirmation that a driver has the proper coverage. Financial ability to pay minimum damages in the event of an accident must be part of the basic insurance coverage.
Minimum liability insurance coverage.
California auto insurance coverage must include specific levels of liability coverage in the event a driver is involved in an accident. The requirements include a minimum of $5,000 coverage for property damage, $15,000 for injury or death to one person and $30,000 for injury or death to more than one person.
When a California driver is stopped by law enforcement, they must be able to provide specific documents upon request. These include a driver’s license as well as proof of insurance. Failure to provide these documents may result in a vehicle being impounded regardless of the type of infraction the driver may have been stopped for.
Failure to have insurance
Failure to carry auto insurance in California is a very serious issue. Drivers must provide evidence of insurance within 45 days of a policy being canceled and within 30 days of transferring ownership of a vehicle. In the event that the driver does not provide the required proof of insurance, vehicle registrations may be suspended.
Auto insurance in California is required for every driver. The Department of Motor Vehicles provides information regarding low cost insurance, penalties for not having sufficient insurance and information on self-insurance. While many drivers often carry theft and collision insurance, this is not sufficient to meet the minimum requirements in California.
California drivers must be prepared to present their drivers license as well as proof of insurance when requested. Drivers should carry their insurance documents with them at all time in the event they are stopped by law enforcement officers. This may be especially important if insurance lapsed and was subsequently renewed.