Do I Need Auto Insurance in California?
If you’re driving in California, maintaining financial responsibility for your vehicle is a legal requirement. Whether you live in Los Angeles or elsewhere in the state, this means you must have auto insurance or another form of financial responsibility.
But what exactly does this entail? Let’s break it down.
What Is Financial Responsibility in California?
Financial responsibility means that you are legally required to cover costs related to any accidents or damages involving your vehicle. While most people choose traditional car insurance to meet this requirement, California also offers alternatives like a cash deposit or a surety bond.
Minimum Auto Insurance Requirements
If you opt for standard car insurance, California law requires the following minimum coverage:
- $15,000 for injuries or death of one person
- $30,000 for injuries or deaths of multiple people
- $5,000 for property damage
These minimums apply only to liability insurance. Comprehensive and collision coverage, which protect your own vehicle, are optional but recommended.
Alternative Options to Meet Financial Responsibility
If you prefer not to get standard auto insurance, you have other ways to meet California’s financial responsibility requirements:
- A $35,000 cash deposit with the DMV
- A surety bond for $35,000 from a licensed company
- A self-insurance certificate issued by the DMV (typically used by owners of fleets)
For those facing economic hardship, the California Low Cost Automobile Insurance Program (CLCA) offers discounted liability insurance for eligible residents.
Proof of Insurance: What You Need to Know
Once you have auto insurance, you need to carry proof in your vehicle at all times. You may need to show proof of insurance:
- If you’re pulled over by the police
- When renewing your vehicle registration
- After a traffic accident
Insurance companies typically notify the DMV electronically if your policy lapses, and the DMV will send you a notice if you don’t have updated coverage.
What If I’m Not Using My Vehicle?
If you’re not planning to drive your car for a while and won’t be parking it on a public street, you can file an Affidavit of Non-Use with the DMV. This allows you to cancel your insurance without risking fines or registration suspension. If your situation changes and you want to start driving again, simply insure the vehicle and update the DMV.
Consequences of Insurance Lapses and Registration Suspension
The DMV will suspend your vehicle registration if your insurance lapses. You’ll receive a 45-day notice to provide updated insurance information. For new or transferred vehicles, proof of insurance must be submitted within 30 days of registration.
If your registration is suspended, you’ll need to:
- Get a new insurance policy
- Submit proof of insurance and pay any suspension fines to the DMV (online, by mail, or over the phone)
Driving with a suspended registration can result in a court summons and having your vehicle impounded. Also, if you’re involved in a traffic collision without insurance, you will be personally liable for any damages.
What to Do If Your Insurance Lapses
If your insurance lapses, act quickly to avoid fines and registration suspension:
- Obtain new insurance coverage.
- Submit proof to the DMV and pay any required fees.
If the DMV suspends your registration, you’ll need to complete these steps before your vehicle can be legally driven again.
Need Help After a Car Accident?
If you’ve been injured in a car accident and have questions about your insurance coverage or rights, speaking to a personal injury attorney can help you navigate the legal process and ensure you’re protected. Contact El Dabe Ritter Trial Lawyers for a free case evaluation.