California Auto Insurance Laws

California law requires that drivers have a certificate of motor insurance, if you are driving your own car or someone else. People who own a vehicle, but do not drive are not currently required to have car insurance in California.

California Compulsory Financial Responsibility Law requires all drivers and car owners to be financially responsible for their actions. The statutory minimum limits of liability insurance in California are that the person responsible for an accident that causes death or injury of a person is liable for $ 15,000, $ 30,000 or if there are multiple injuries in an accident. The manager is responsible for $ 5,000 for property damage for any one accident.

There are four techniques to achieve their financial liability, including coverage of a motor vehicle liability insurance policy or a car, a cash deposit of $ 35,000 with the Department of Motor Vehicles (DMV), a certificate of self - insurance issued by DMV to owners of fleets of more than 25 vehicles, or a surety for $ 35,000 obtained from an insurance company authorized to do business in California.

When a vehicle is in an accident for which the driver is established as legally liable, the liability of injury concerns of their responsibility to others for damage to them, while the damage on their liability for damage to someone else's property .

California owners and all drivers must have at least the statutory limits of minimum liability insurance or an approved alternate method to compensate for injuries or damages that may result. The penalties are extremely harsh for non-compliance of this segment of the vehicle code. Full Coverage (other than collision), uninsured motorist, medical payments and collision insurance are not required by law, but can be a good investment.