As per the Auto Insurance Laws, every individual is required to carry a proof of financial responsibility while driving in the State of California. Financial responsibility represents the minimum insurance coverage an individual needs to obtain in order to drive legally in California. Hence, it is right to say that it is a mandatory requirement.

Insurance is intended to protect you from any damages or liabilities that may arise as a result of an accident. An individual is free to choose from the minimum liability insurance or comprehensive insurance which may cover losses in case a vehicle is stolen and so on.

What Is The Minimum Amount Of Insurance Coverage For State of California?

Any Individual Is Required To Obtain Insurance Coverage To The Extent  Of:

a)    $ 15,000 for meeting any bodily injury or death liability charges in respect of any one person.
b)    $ 30,000 for meeting any bodily injury or death liability charges in respect of any two persons.
c)    $ 5,000 in respect of any property damage caused as a result of an action of the person driving the vehicle.

Insurance Policy covers these liabilities in respect of each accident during the period of policy. These amounts represent the minimum coverage that is required to be obtained as per the laws. This kind of minimum coverage will cover liabilities towards others only. It will have no provision to compensate the policy holder for any physical damage to his/her vehicle. An individual can obtain additional coverage in case he/she wishes to do so, since any amount of liability beyond the limits specified above will have to be borne by the individual himself/herself.

How Can Financial Responsibility Requirements Be Met?

Any individual can meet the financial responsibility requirements by adopting any of the four mediums listed below:

a)    By obtaining an automobile insurance policy.
b)    By depositing a cash equivalent to $ 35,000 with California Department of Motor Vehicles (DMV).
c)    By obtaining a self insurance certificate from DMV.
d)    By obtaining a surety bond from an insurance company that is licensed to operate and conduct business in California.

What Are The Possible Consequences Of Driving Without Insurance In California?

Driving without obtaining insurance is considered as a serious offense in California. In case, an individual is found driving without any insurance coverage or proof of insurance meeting the minimum liability requirements, severe penalties can be levied. Some of the possible consequences are listed below:

a)    A penalty of  $ 500
b)    An individual’s driving license may get suspended
c)    Vehicle may also get impounded.

Considering the kind of implications associated, it is must for an individual to obtain and ensure timely renewal of vehicle insurance. Further, even if insurance has been obtained, an individual should always carry the certificate (or any other) proof while driving.It is important to note that if an individual has obtained insurance coverage, but does not carry it while driving the vehicle, any penalty levied can be reversed by the court after submission of relevant proof or document. Here the individual will be liable to bear the associated administrative charges.

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