Auto insurance policies in California are regulated by the California Department of Motor Vehicles. And they are serious about it.
As they themselves say in their website, the aim of the law that regulates auto insurance is to give private drivers “liability insurance that provides financial responsibility for any damage or injury caused by a traffic collision regardless of fault, and to remove uninsured vehicles from the highways.” The law is appropriately named “California’s Vehicle Financial Responsibility and Suspension Laws.”
So, not only you have to have insurance for your car in California, you have to present proof of it when you renew your vehicle’s registration AND present it to a police officer if he stops you for any reason. And of course, if you ever get into an accident.
An interesting note is that as long as your car is out on the street, you have to be able to present proof of insurance, EVEN if the car is not moving. For example, if your car is parked, and someone else hits it, YOU have to show proof of insurance as well.
There are several methods that the law provides for you to prove your financial liability, but the easiest one by far is to get auto insurance. Other methods are very difficult to get, for example, a deposit of 35,000 dollars or having a car fleet of 25 or more vehicles, so that they serve as insurance for each other.
So, what are the insurance minimums that you need? Let’s look at the law again (note that this applies for private passenger vehicles)
* $15,000 for injury/death to one person.
* $30,000 for injury/death to more than one person.
* $5,000 for damage to property.
In California auto insurance lingo, this insurance coverage is called “15/30” or “basic.” It’s the minimum insurance you have to have in order to be able to drive in California. If you come into California from another country or from Mexico, you have to make sure that your policy covers this or you’ll get in trouble if you are ever stopped or get in an accident.
Lastly, while these are the minimums, you should consider getting more coverage than the law requires. Sure, it will cost you more, but you’ll be able to drive around without the worry that hospital bills will go beyond $30,000. This kind of larger coverage is called “standard” and you can find a good quote for it on this site.