California law requires that drivers have proof of auto insurance if they are driving their own vehicle or someone else’s. People who own a vehicle but don’t drive it are still obligated to have auto insurance in California.

California’s Compulsory Financial Responsibility Law requires all drivers and owners of an auto to be financially responsible for their actions. The legal minimum limits of liability insurance in California are that the individual responsible for an accident that results in the death or injury of one person is liable for $15,000 or $30,000 if there are several injuries in one accident. The responsible party is liable for $5,000 of property damage for any one accident.

There are four techniques to understand financial responsibility, counting coverage by a motor vehicle or automobile liability insurance policy, a cash deposit of $35,000 with the Department of Motor Vehicles, a certificate of self-insurance issued by Department of Motor Vehicles to owners of fleets of more than twenty five vehicles, or a security bond for $35,000 obtained from an insurance company licensed to do business in California.

When a car is in an accident for which the driver is established as a lawfully liable, bodily injury liability covers their liability to others for injuries to them, while property damage liability covers their liability for damage to someone else’s property.

All California drivers and owners require having at least the legal limits of minimum liability insurance or an official substitute method to compensate for injury or property damage they may bring about. Penalties are very harsh for nonconformity with this segment of the automobile code.