Insurance Requirements for Vehicle Registration

Purpose of the law

The purpose of the law is to ensure that vehicles driven on California roads have liability insurance that provides financial responsibility for any damage or injury caused by a traffic accident, regardless of fault, and to remove uninsured vehicles from the highways.

Mandatory vehicle registration financial responsibility requirements

Financial responsibility must be obtained and maintained on any vehicle operated or parked on California roadways and must be provided as specified below:

• When requested by law enforcement
• When renewing vehicle registration (if requested)
• When the vehicle is involved in a traffic accident
• Within 30 days of receiving a registration card for a newly acquired vehicle
• Within 45 days of the cancellation of a policy for a currently registered vehicle

You must carry evidence of financial responsibility (proof of insurance) in your vehicle at all times.

Types of financial responsibility

• A motor vehicle liability insurance policy
• A cash deposit of $35,000 with DMV
• A DMV issued self-insurance certificate
• A surety bond for $35,000 from a company licensed to do business in California

For information regarding cash deposits, or self insurance, please contact:

• Department of Motor Vehicles
  Financial Responsibility MS J237
  PO BX 942884
  Sacramento, CA 94284-0884
  916-657-6520

To locate a company that issues surety bonds, please contact the Department of Insurance at 1-800-927-4357 or visit www.insurance.ca.gov.

Minimum liability insurance requirements for private passenger vehicles (California Insurance Code §11580.1b)

• $15,000 for injury/death to one person.
• $30,000 for injury/death to more than one person.
• $5,000 for damage to property.

Liability insurance compensates a person other than the policy holder for personal injury or property damage (comprehensive or collision insurance does not meet vehicle financial responsibility requirements). Check your policy or talk to your agent or broker to make sure you have sufficient liability insurance coverage for each vehicle you own.

California Low-Cost Automobile Insurance Program information is available on the Department of Insurance website.

Acceptable evidence of financial responsibility

Your insurance company is required to electronically report insurance information for all private-use vehicle liability policies. In some cases, however, you may also be requested to submit this information to DMV by providing:

• A document or identification card from your insurance company indicating that the vehicle is insured. (Documents mailed to the department will not be returned.)
• A DMV authorization letter, if you are a cash depositor or are self insured.
• California Proof of Insurance Certificate (SR-22) for broad coverage or owner's policy. (Operator's policy does not satisfy financial responsibility requirements.)
• Evidence that the vehicle is owned or leased by a public entity defined in Government Code §811.2.
• Motor carriers as defined in CVC §34601 may complete a Statement of Facts (REG 256) indicating that the carrier has evidence of insurance on file with the Public Utilities Commission or DMV pursuant to CVC §34630.

The following types of vehicles are not required to provide evidence of liability insurance to DMV:

• Trailers
• Off-Highway vehicles
• Vehicles registered to a government entity (city, county, state, federal)
• Special Equipment vehicles
• Vehicles registered under a Planned Non-Operation status

If you fail to maintain financial responsibility

• Your driving privilege may be suspended. If you are involved in an accident and cannot provide evidence of financial responsibility, you may lose your driving privilege for up to one year.
• Registration of your vehicle will be subject to suspension (effectiveOctober 1, 2006). DMV will begin the process to suspend the registration of your vehicle if liability insurance is cancelled and a replacement policy is not submitted within 45 days, or your insurance company has not electronically provided evidence of insurance within 30 days of a registration card being issued on a newly acquired vehicle, or if you provide false evidence of insurance.
• You may be cited. Failure to provide evidence of financial responsibility when requested by a peace officer may result in a citation with fines that could reach $1,000 or more. (DMV cannot clear or sign citations relating to financial responsibility. Only a court can clear or sign these citations).
• Your vehicle may be impounded. Failure to provide evidence of financial responsibility may result in your vehicle being impounded, in addition to any fines.
• You may be personally liable for damages. If you contribute to the cause of an accident and cannot provide evidence of financial responsibility, you may be forced to compensate the other party for any injuries and damages.

If your vehicle registration is suspended, contact the Vehicle Registration Financial Responsibility Program at 1-866-664-4545. NOTE: Vehicle financial responsibility services cannot be completed at your local DMV field office.