What is the California Car Insurance Financial Responsibility Law?
Unlike the “No Fault” states, CA requires motorists to carry policies which secure compensation for the injuries to other parties and/or damages to the property of others. It does not require residents to have coverage for their injuries or protection covering their vehicle. The main goal behind the financial responsibility law is to ensure that operators have a means to pay for any damages that they may cause others while driving their automobile and to keep uninsured motorists off of the roadways. The California auto insurance laws state that all motorists must carry the minimum liability limits at all times. These limits are as follows; $15,000 for bodily injury to one person, $30,000 for bodily injury to two or more people and $5,000 for property damage. Once the proper policy is purchased, the provider is required to notify the state’s Department of Motor Vehicles (DMV). In addition, insurers are required to notify the DMV in the event that a person has had a cancellation and upon
