How California Car Insurance Rules Can Get You Busted

California is no different in its requirement that all drivers on the road carry at least liability insurance, the state does differ in the fact that it electronically tracks and enforces this law. By requiring all insurance companies that write in their state to report new auto policies and cancellations; the state can easily enforce this law and also punishes those that fail to comply.

Moving from one state to another can mean a new set of motor vehicle and insurance laws for you to learn, but all states have the same primary insurance law, you cannot drive legally without at least having a liability insurance policy on your vehicle. These laws are put in place to protect everyone out on the road from damage caused by another driver.

The state of California though, has gone one step further and they electronically keep track of the insurance policies on all of the registered vehicles in their state. Not only do you need to have the minimum amount of insurance on your car, but that your car is correctly registered as a vehicle "in-use" or if you own a vehicle without insurance, it needs to be registered as "non-operational". Failure to comply with these strict insurance laws can get you into a lot of trouble.

California Minimum Requirements Are?

California makes sure that all drivers have liability insurance and not only that but that you have a specific amount of this insurance. California's basic liability insurance is 30k in coverage for injuries in the other car and 15k per person. 5K in insurance will cover damages to the other persons car.

If you still need to drive, but cannot afford your insurance premium and are not able to use public transportation, California does offer a low cost insurance program. To see if you qualify for this program or to find out more information visit the California Low Cost Automobile Insurance Program's website at www.aipso.com/lc .

How Does California Track Me?

All insurance companies that write policies in the state of California are required to report to the Department of Motor Vehicles electronically every time you purchase or cancel your auto insurance. This is a state law that insurance companies must comply with and this is how the state keeps track to make sure that all of its drivers are carrying the minimum insurance required.

When renewing your vehicle registration, the state keeps track of valid insurance on your vehicle.

What Happens If I Don't Want To Comply?

When you cancel a California car insurance policy you have 45 days to report that you have replaced coverage either with the same insurance company or a new one. If you decide that you do not want to pay for insurance on your vehicle any longer, but still continue to drive, the state will suspend your vehicle registration. If you cancel car insurance, buy a new car and don't insure it in 30 days or if you falsify insurance documents you will be suspended.

If you get pulled over with a suspended registration, you will not only be given a ticket, your vehicle could be impounded also. If you don't have basic liability insurance and cause a crash, all costs of damage to your vehicle and the other persons vehicle is coming straight out of your pocket. As you can see the fees to pay your ticket, get your vehicle out of impound and even for the cost of an accident far outweighs the amount of money that you would be saving by not paying your insurance premium. If you have had your vehicle registration suspended you also get to pay a reinstatement fee to have the suspension lifted after you provide proof of valid insurance.

For more information on these and other California car insurance requirements, contact your local agent or visit the website for the Department of Motor Vehicles at www.dmv.ca.gov .


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Todd Clay was an agent for the largest insurance company in the United States. He now researches and blogs about car insurance with the consumer in mind. Check out the latest customer reviews, low cost car insurance, or grab a few california car insurance quotes online: www.CarInsuranceGuidebook.com