The state of California insurance code requires are least basic coverage for all drivers operating a motor vehicle. Failure to do so could result in fines that are bigger than the insurance premiums would have been. If you don't want to go to court and have to hassle with officers, judges and big fines then it is a good idea to learn California ins laws.
For liability insurance, there are three types of coverage that must all be in your policy. They bodily injury for one person, bodily injury for more than one person and property damage. If a policy does not have each of these things, then it is not valid for use in the state.
The minimum amount of coverage is $5,000 in the case of property damage, $15,000 in the case of bodily injury to one person and $30,000 for bodily injury to two people. Of course, you are free to purchase a policy that has much more coverage than this, but the premium you pay for that insurance will be higher.
When going to register your vehicle at the Department of Motor Vehicles (DMV) you will be asked to provide proof of insurance, which is usually a card issued by your insurer. If you don't have it, you may be denied the chance to register the vehicle until you can provide proof.
When registering, there is a way to get around the liability coverage law. One is to make a $35,000 cash deposit that will take the place of the required policy. Another is to provide proof of self-insurance, if applicable This means you set aside funds each month instead of paying a monthly premium to an insurer. The final way is a surety bond that is registered directly with the DMV.
If you are unsure about insurers and want more information, the California Department of Insurance is a consumer protection and enforcement bureau that can provide help with California ins laws. Their official website is free to use and can be a great resource when navigating the laws.
