California Car Insurance Requirements (2024)

Welcome to our comprehensive guide on California car insurance regulations and required coverage. If you’re a California driver, it’s crucial to understand the specific insurance requirements in your state.

In this article, we will delve into the key topics surrounding California car insurance, including the minimum liability limits mandated by law, additional coverage options to consider, and important factors that affect insurance rates in the state.

By staying informed, you can make well-informed decisions to protect yourself and your vehicle on the roads of California. Ready to find the best insurance coverage at competitive rates? Enter your zip code below and compare quotes from top insurance providers. Take the first step towards securing the right car insurance for your needs and drive with confidence.

Required Coverage

All personal vehicles in California require the following liability coverage requirements:

• Bodily Injury
• Property Damage

The California Automobile Assigned Risk (CAARP) plan was created to help individuals unable to receive insurance coverage through the normal channels obtain coverage. The CAARP does this by
matching these people with an insurance company that is able to provide insurance coverage for their vehicle.

Recommended Coverage Options

Additional insurance coverage can include:

• Uninsured / Underinsured Motorist Coverage
• Comprehensive and Collision Coverage

Uninsured / underinsured coverage covers the costs of damages to you, your passengers or your vehicle in the event that the person found to be responsible is not insured or does not have enough coverage to pay for the resulting damages. This coverage also will pay for damages caused by a hit and run driver.

Collision and comprehensive coverage help fill other gaps in insurance coverage. Collision will help pay for repairs and damages to your car when it is involved in any type of accident.
Comprehensive coverage pays for damages or costs resulting from events other than a collision or accident such as having your car stolen, being damaged by fire or other types of incidents. Cars are stolen every day in California. Some of the most stolen vehicles in California are more likely to benefit from comprehensive coverage but it is still recommended to add this coverage to your policy.

Proof of Insurance and Financial Responsibility

Establishing proof of insurance and financial responsibility

• Get a standard liability car insurance policy
• Get a DMV issued self-insurance certificate
• Make a cash deposit of $35,000 with the California DMV
• Post a surety bond for $35,000 from a company licensed to do business in California.

Required Documentation

In California, when you purchase a car insurance policy, your insurance agency will automatically notify the DMV electronically. In some cases, you may be required to take additional steps.

Additional documentation showing proof of insurance and financial responsibility can include:

• A document or ID card from your insurance company
• If you are self insured or made a cash deposit, an authorization letter from the DMV
• A California Proof of Insurance Certificate (SR-22)
• Documents showing that the vehicle is publicly owned or leased (as defined in Government Code 811.2)
• Form REG-5085 showing that the vehicle is being registered for the first time and is covered by a commercial policy
• Statement of Facts (REG-256). This provides proof that there is evidence on file with the DMV or Public Utilities Commission pursuant to California Vehicle Code 34630.

You must maintain proof of insurance and financial responsibility and present it:

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

Failure to Maintain Financial Responsibility Penalties

• Vehicle Registration Suspension (CVC 4000.38) when
  • You cancel a policy and do not obtain a replacement within 45 days
  • You do not submit insurance information to the DMV within 30 days of initial registration or ownership
  • You provide false evidence of insurance to obtain registration
• Traffic Ticket
  • Not providing proof of insurance to law enforcement can result in a ticket of $1,000 or more
• Impounded Vehicle
• Financial Liability in an Accident
  • If you are contribute to or cause a car accident without maintaining insurance or financial responsibility, you may be held personally liable for damages resulting from the accident

California Insurance Agents

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