Auto Insurance: A California Requirement

In California, auto insurance is mandatory for all drivers. The state's minimum car insurance requirements include $15,000 in liability coverage for a single other driver's injury, $30,000 in coverage per accident, and $5,000 in coverage for property damage. While car insurance is the easiest way to meet the financial responsibility requirement, there are alternative forms of coverage. If you're caught driving without insurance in California, you will likely have to pay fines and surrender your driver's license.

Minimum auto insurance requirements in California

In California, drivers are required to have auto insurance or some form of financial responsibility before driving. The state's minimum car insurance requirements include liability coverage for a single other driver's injury, coverage per accident, and coverage for property damage.

The minimum liability insurance requirements in California are as follows:

• $15,000 for injury/death to one person.
• $30,000 for injury/death to more than one person.
• $5,000 for damage to property.

Liability insurance compensates a person other than the policyholder for personal injury or property damage. It is important to note that comprehensive or collision insurance does not meet vehicle financial responsibility requirements.

While car insurance is the easiest way to meet the financial responsibility requirement, there are alternative forms of coverage to choose from. However, if you are caught driving without insurance in California, you will likely face fines and have your driver's license suspended.

California also recommends uninsured/underinsured motorist bodily injury coverage (UM/UIM BI) with the following minimum limits:

UM/UIM BI: $15,000 per person, $30,000 per accident.

This coverage can be rejected, but it is important to consider as it covers medical expenses for you and your passengers if you are hit by a driver with insufficient or no insurance.

Alternative ways to show financial responsibility

In California, all drivers are required to have auto insurance or some form of financial responsibility. While car insurance is the easiest way to meet the financial responsibility requirement, there are alternative ways to show financial responsibility. Here are some alternative ways to prove financial responsibility in California:

Cash Deposit

You can make a cash deposit of $35,000 in a savings account with any bank and then contact the DMV Financial Responsibility Unit to fill out and submit the application form. Ensure that you always have $35,000 in that account, as the DMV will be able to draw from it and use those funds if you are at fault in a car accident.

Certificate of Self-Insurance from the DMV

If you own more than 25 vehicles in your name, you can obtain a self-insurance certificate from the California DMV. This certificate states that you can cover medical bills, car repairs, and property damage expenses as a minimum-liability policy would. The DMV may require evidence that you can meet these financial demands before issuing the certificate.

You can purchase a surety bond for $35,000, which guarantees that you will cover medical bills, car repairs, and other property damage expenses if you are at fault in a car accident. If you are unable to pay for these expenses, the surety company will step in and seek payment from you later. Contact the California Department of Insurance for a list of licensed surety companies offering this type of bond.

California's Low-Cost Automobile Insurance Program

If you cannot afford standard auto insurance, you may be eligible for California's Low-Cost Automobile Insurance Program (CLCA). This program offers affordable car insurance for safe drivers whose household income falls within the federal poverty guidelines. The CLCA program has lower minimum coverage limits, allowing you to purchase insurance with reduced limits while still satisfying the state's auto insurance laws.

California's Low-Cost Auto Insurance Program

In California, drivers are required to have auto insurance or some form of financial responsibility before operating a vehicle. While car insurance is the easiest way to meet the financial responsibility requirement, there are alternative forms of coverage. If you're caught driving without insurance in California, you will likely have to pay fines and surrender your driver's license.

If you cannot afford liability insurance, you may be eligible for California's Low-Cost Auto Insurance Program (CLCA). This program was established by the Legislature in 1999 and exists pursuant to California Insurance Code Section 11629.7. It is designed to provide income-eligible persons with liability insurance protection at affordable rates, helping them meet California's financial responsibility laws.

To be eligible for the CLCA program, your annual income must be 250% or less of the federal poverty level. Additionally, your car must be worth $25,000 or less, and you must have a valid California driver's license and be at least 16 years old. The program offers seven payment plans, and there is no broker's fee.

• Bodily injury liability insurance: $10,000 per person and $20,000 per accident.
• Property damage liability insurance: Up to $3,000 per accident.
• Uninsured motorist bodily injury: Up to $10,000 per person and $20,000 per accident (optional coverage).
• Medical payments: Up to $1,000 per person (optional).

What to do if you're in an accident without insurance

In California, it is illegal to drive without insurance. All drivers are required to have auto insurance or some form of financial responsibility before hitting the road. The state's minimum car insurance requirements include $15,000 in liability coverage for a single other driver's injury, $30,000 in coverage per accident, and $5,000 in coverage for property damage. If you are caught driving without insurance in California, you will likely face fines and have your driver's license suspended.

If you are in a car accident without insurance in California, it is important to remain calm and take the following steps:

• First, check if everyone involved is safe and call 911 if necessary.
• Exchange information with the other parties involved, including names, contact details, and vehicle information. It is also advisable to take pictures of the accident scene for documentation.
• Report the accident to the police. This step is essential for legal reasons and can potentially protect you from being liable for the collision if you were not at fault.
• Gather witness contact information as they can provide important statements on how the crash occurred.
• Consult a lawyer promptly for guidance on the best course of action and help with navigating any potential legal consequences. Without insurance, you may be personally liable for damages and medical expenses.

It is important to note that leaving the scene of an accident is against the law in California. If you are involved in an accident, regardless of whether you have insurance or not, you must remain at the scene.

If the other driver is at fault and doesn't have insurance, you may still have options for compensation:

• If you carry uninsured motorist coverage as part of your insurance policy, you can file a claim with your insurance company.
• You may consider filing a personal injury lawsuit against the at-fault driver, especially if you only have liability insurance as required by state law.

In California, if you are found guilty of driving without insurance, you will face penalties, including fines, the potential suspension of your vehicle's registration or license, and the requirement to file an SR-22 certificate, which confirms you are carrying the minimum amount of insurance in the state.

The penalties for driving without insurance

In California, driving without insurance is considered an infraction and is punishable by law. The penalties for driving without insurance in California can vary depending on the situation and whether it is a first-time or repeat offense. Here are the details of the penalties:

First Offense:

For a first-time offender, the penalties include a fine ranging from $100 to $200, plus penalty assessment fees. The penalty assessment fees are variable and can double or triple the fine amount, bringing the total to around $400 or $450. Additionally, the court may impound the vehicle.

Second and Subsequent Offenses:

For a second offense, the fines increase to a range of $200 to $500, and penalty assessments can bring the total to between $520 and $1,300. The penalties continue to escalate for subsequent offenses.

License Suspension and Fines:

If a driver is caught driving without insurance and is involved in an accident, the state may suspend their driver's license for one year, in addition to charging a fine. For a first offense, the fine can be up to $200, while for subsequent offenses, it can increase to $500. With additional penalties and fees, the total cost can be much higher.

Vehicle Impoundment:

The vehicle may be impounded, and the driver will be responsible for any towing and storage fees. This penalty can apply to both first and subsequent offenses.

SR-22 Requirement:

If involved in an accident without insurance, drivers may be required to obtain an SR-22 form, which is a certificate of financial responsibility. This requirement typically lasts for three years and indicates to the DMV and insurers that the driver is high-risk.

Personal Liability:

Without insurance, drivers may be personally liable for any damages and medical expenses resulting from the accident. This means they could be responsible for covering these costs out of pocket.

Limitations on Recovering Non-Economic Damages:

In California, if an uninsured driver gets into an accident, they may face limitations on recovering non-economic damages like pain and suffering, even if they are not at fault. However, there are exceptions to this rule, such as if the at-fault driver is under the influence of drugs or alcohol.

Increased Insurance Costs:

Beyond the immediate penalties, getting caught driving without insurance in California can lead to a significant increase in auto insurance premiums once the driver obtains coverage. Insurance companies will consider the driver a higher-risk, resulting in higher rates.

Frequently asked questions