California State Car Insurance Regulation Laws

• Drivers need insurance to legally drive on California's freeways.bridge traffic image by Aaron Kohr from Fotolia.com
  
  Car insurance is an important form of insurance for any driver. Besides protecting the value of your vehicle, it also protects you from personal harm and limits your liability in case of an accident. Each state sets its own laws concerning minimum insurance requirements. In California, where congested freeways are a way of life, auto insurance regulations are enforced by the Department of Motor Vehicles.
  
  

Mandatory Coverage

• In the state of California, all registered vehicles must be insured. A vehicle's owner is in violation any time an uninsured vehicle is parked or operated on public roads, even if the operator is someone other than the registered owner. Drivers are required to carry proof of insurance, usually in the form of an insurance card, at all times while driving. California drivers are also required to present this proof whenever they are asked to do so by a police officer.
  
  

Vehicle Registration

• Whenever a California driver files for a new vehicle registration, they are asked to show proof of financial responsibility. While this is most often a card issued by a private insurance company, drivers do have several alternatives. These include a $35,000 cash deposit or surety bond on file with the DMV, or a self-insurance certificate for drivers who choose to set aside cash reserves rather than purchase a monthly or annual private insurance plan.
  
  

Minimum Coverage

• California law mandates that all drivers carry three forms of liability insurance, each of which has a minimum value. The first is bodily injury liability in the amount of $15,000 for an injury to one person. The second form is $30,000 of coverage for bodily injury to more than one person. Finally, drivers must also have at least $5,000 of insurance for property damage.
  
  

Additional Coverage

• California state regulations allow drivers to purchase several other forms of car insurance that do not go toward meeting the mandatory minimums. These include comprehensive insurance, collision insurance and uninsured motorist insurance, for cases where the driver is involved in an accident caused by an illegally uninsured driver. Drivers may also choose to purchase additional coverage beyond the minimums for bodily injury and property damage.