California's Mandatory Auto Insurance Law: When Did It Start?

California's mandatory auto insurance law, also known as the Robins-McAlister Financial Responsibility Act, was passed in 1984. The law requires motorists stopped for traffic violations to prove they have liability coverage or risk losing their licenses. This law was upheld by the California Supreme Court in 1987, which rejected claims that the law was unconstitutional because it required low-income motorists to carry insurance without guaranteeing affordable rates.

The minimum auto insurance requirements in California include $15,000 per person and $30,000 per accident in bodily injury liability insurance, as well as $5,000 in property damage liability coverage. Driving without insurance in California is illegal and can result in fines, suspension of license and registration, and other penalties.

California's mandatory auto insurance law upheld by the state's Supreme Court

In 1987, California's mandatory auto insurance law was upheld by the state's Supreme Court. The law, which had been passed in 1984, required motorists stopped for traffic violations to prove they had liability coverage or face losing their licenses. The Supreme Court's decision was unanimous, rejecting the claim that the law was unconstitutional because it required low-income motorists to carry insurance without guaranteeing affordability.

The ruling stated that drivers who could not afford private insurance could obtain coverage through the state-backed "assigned risk" program, which offered more affordable rates. This program was mandatory for all private insurers to participate in. The court acknowledged the financial burden on low-income drivers but asserted that the issue should be addressed by the legislature rather than the court system.

The California Highway Patrol and other state officials planned to enforce the law once the court's decision became final after 30 days. This decision was a significant milestone in California's effort to reduce the number of uninsured motorists, estimated to be around 15% of all drivers in the state at the time. The new law imposed fines and license revocations on those who failed to obtain the mandatory insurance coverage.

California's mandatory auto insurance law set minimum liability coverage requirements, including bodily injury and property damage protection. Drivers needed a minimum of $15,000 per person and $30,000 per accident for bodily injury coverage and $5,000 per accident for property damage coverage. These state-mandated limits were considered lower compared to most other states, and drivers were encouraged to consider additional coverage for more comprehensive protection.

Overall, the upholding of California's mandatory auto insurance law by the state's Supreme Court was a crucial step in ensuring financial responsibility and protection for all motorists and reinforcing the importance of maintaining insurance coverage to promote safer roads.

California's auto insurance requirements

California requires drivers to carry at least the following auto insurance coverages:

• Bodily injury liability coverage: $15,000 per person / $30,000 per accident minimum
• Property damage liability coverage: $5,000 minimum
• Uninsured motorist bodily injury coverage: $15,000 per person / $30,000 per accident minimum
• Uninsured motorist property damage coverage: $3,500 minimum

These are the minimum coverages California requires you to have, but everyone's insurance needs are unique. California also has a Deductible Waiver, which means that if you carry collision coverage on your car, your insurance company will pay the collision deductible if an uninsured driver causes an accident.

California also has specific laws regarding insurance for new residents and teen drivers. If you're moving to the state, the California Driver Handbook is a good resource. It's published by the Department of Motor Vehicles and can provide you with guidance on registering your car, obtaining a California driver's license, and important state rules of the road.

For teen drivers, California requires them to complete driver training and get a provisional permit before becoming fully licensed. They must be at least 15 and a half years old to obtain a provisional permit. After that, they need to be 16 years old and have had the provisional permit for at least six months before applying for a license.

In terms of financial responsibility, insurance is required for all vehicles operated or parked on California roads. This is also known as financial responsibility. You must carry evidence of insurance in your vehicle at all times and provide it when requested by law enforcement, when renewing your vehicle registration, or if your vehicle is involved in a traffic collision.

The types of acceptable insurance in California include:

• Motor vehicle liability insurance policy
• Cash deposit of $35,000 with the DMV
• DMV-issued self-insurance certificate
• Surety bond for $35,000 from a company licensed to do business in California

California's penalties for driving without insurance

In California, motorists are required to carry proof of liability insurance or an acceptable alternative. Driving without insurance in California can result in various penalties, depending on the situation. For example, if you are pulled over for a traffic violation or are involved in a car accident, the penalties will differ.

First Offense

For a first-time offender, the penalty includes a fine ranging from $100 to $200, plus penalty assessment fees, which can bring the total cost to around $400. The court may also impound your vehicle.

Second Offense

For a second offense, the fines increase to between $200 and $500, with penalty assessments rising to between $520 and $1,300. This means you could end up paying between $1,020 and $1,800, which is close to the average annual cost of car insurance in California.

Driving Without Insurance in an Accident

If you are involved in a car accident and cannot show proof of insurance, the state will suspend your license for one year, in addition to charging a fine. Your car may also be impounded until you pay any towing and storage fees. After the one-year suspension, you can apply to have your driving privileges reinstated, but you must maintain an SR-22 and proof of financial responsibility for three years.

Repeat Offenses

For a second and subsequent offense after a collision, the fine ranges from $200 to $500, with penalty assessments of $520 to $1,300. The police may also impound your vehicle. The license suspension for a second offense is up to four years, with the possibility of reinstating your driving privileges during the last three years if you provide an SR-22 and maintain it.

It is important to note that even if you have insurance but forget to carry your insurance card, you could still receive a ticket with a substantial fine. However, you can appeal to the court to reduce the fine by providing proof of insurance coverage on the date you were pulled over. The court may then decide to withdraw the ticket and charge only a $20 administrative service fee.

California's Low-Cost Auto Insurance Program

The CLCA program is administered by the California Automobile Assigned Risk Plan (CAARP) and offered through the Automobile Insurance Plan Service Office (AIPSO). While the program helps make insurance more accessible, too many income-eligible drivers remain uninsured due to the high cost of standard insurance premiums. To address this issue, a new law, SB 1273, was passed in 2014, providing exceptions to certain requirements and increasing vehicle values covered under the program.

Under the CLCA program, eligible individuals can obtain liability insurance protection at affordable rates. This ensures that they are protected financially in the event of an accident and helps them comply with the state's mandatory auto insurance law. The program is especially beneficial for low-income motorists, who may otherwise struggle to afford insurance at standard rates.

To qualify for the CLCA program, individuals can visit www.mylowcostauto.com or call 1-866-602-8861 to speak with a certified agent in their local area. This service helps determine eligibility and provides information on the program's requirements and benefits. By taking advantage of this program, income-eligible individuals can obtain the necessary auto insurance coverage while managing their financial responsibilities.

California's proof of insurance requirements

In California, proof of financial responsibility (commonly insurance) is required for all vehicles that are operated or parked on roads. This has been the case since the mandatory auto insurance law was upheld in 1987.

There are only a few specific times when you are required to show proof of insurance:

• When requested by law enforcement
• When renewing vehicle registration
• When the vehicle is involved in a traffic collision

If you fail to provide proof of financial responsibility, especially after a car accident, you may have your driver's license suspended. If the Department of Motor Vehicles (DMV) finds that you do not have insurance, it may suspend your vehicle registration. Your vehicle registration may also be suspended if it is found that the registration was obtained by providing false evidence of insurance.

In addition to having your vehicle registration suspended, you may:

• Have your vehicle impounded
• Be personally liable for damages, if you are involved in a collision
• $15,000 for injury/death to one person
• $30,000 for injury/death to more than one person
• $5,000 for damage to property

Please note that comprehensive or collision insurance does not meet vehicle financial responsibility requirements. Liability insurance is necessary to compensate those other than the policyholder for property damage and/or personal injury that occurs from an accident.

If you cannot afford liability insurance, you may be eligible for the California Low-Cost Automobile Insurance Program.

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