Is It Illegal to Drive Without Insurance in California? (Insurance Laws Explained)
Technically, the answer is no.
California law requires all drivers and owners of motor vehicles to produce proof of their ability to pay for any damage they cause. Insurance is one way to demonstrate financial responsibility and is usually the most affordable way to meet the state’s minimum requirements.
Despite the risk of penalties for breaking the law and personal liability for causing damage, uninsured drivers make up a significant number of motorists behind the wheel on California roadways.
This blog explains California’s auto insurance requirements, penalties for non-compliance, protecting yourself from uninsured motorists, and more.
California Driver Financial Responsibility Requirements
The California Vehicle Code requires all drivers and vehicle owners to establish proof of financial responsibility.
For most private passenger vehicles this will mean purchasing auto liability insurance from the standard insurance market.
Proof of financial responsibility must be carried in the vehicle at all times and must be produced when requested by law enforcement, when renewing the vehicle registration, and when involved in a motor vehicle accident.
Drivers who choose to purchase insurance to meet the state’s financial responsibility requirements are also required to purchase a minimum amount of coverage.
Drivers should be aware that the minimum liability limits will increase at the first of the year, thanks to Senate Bill 1107, which was passed in 2022.
Current minimum required liability limits are:
- $15,000 per person bodily injury
- $30,000 per accident bodily injury
- $5,000 per accident property damage
Effective January 1, 2025, the minimum liability limits are doubled or even tripled. The new limits will be:
- $30,000 per person bodily injury
- $60,000 per accident bodily injury
- $15,000 per accident property damage
In 2035, the minimum liability limits will increase again. The per-person bodily injury limit will become $50,000, and the per-accident bodily injury limit will increase to $100,000.
Property damage will be raised to $25,000.
The financial responsibility requirements can also be satisfied by making a $35,000 cash deposit with the Department of Motor Vehicles (DMV) or by purchasing a surety bond for the same amount. On January 1, 2025, the cash deposit and surety bond amounts will increase to $75,000.
There Are Strict Penalties for Driving Without Auto Insurance in California
Drivers who are stopped and cannot provide proof of financial responsibility are cited and will pay fines and penalties.
Repeat offenders pay higher fines and penalties and risk having their vehicles impounded. Drivers who can produce proof of being insured at the time of the stop can get their case dismissed with a small fee.
Drivers who were uninsured at the time of the stop but are insured at the time of their hearing will pay reduced fines and penalties.
The penalties are more severe for uninsured drivers involved in accidents. Failure to produce proof of financial responsibility after an accident results in a suspension of driving privileges. The minimum suspension is one year but can be as long as four years if proof of financial responsibility is not maintained with the DMV after the first year.
Those who need to drive for work or to get kids to school can apply and pay a fee to be granted limited driving privileges during the first year as long as they maintain auto insurance.
How to Protect Yourself From Uninsured Motorists
According to statistics from 2022 presented by the Insurance Information Institute, 17% of the drivers on California’s roads do not have insurance.
The good news is that California is not even in the top 10 states with the highest percentage of uninsured drivers.
The DMV reports that there are almost 34.5 million licensed drivers in the state. That means close to 6 million drivers are likely unable to compensate the persons they injure in accidents.
Fortunately, uninsured or underinsured motorist coverage is optional insurance California drivers can purchase to cover their damage from accidents caused by uninsured drivers.
Standard auto insurance quotes must include uninsured motorist coverage, and drivers who don’t want to purchase it must opt out in writing. The limits of uninsured motorist coverage are usually the same as the liability limits – except uninsured motorist property damage coverage is limited to $3,500.
California Offers an Alternative for Motorists Who Can’t Afford Insurance
Auto liability insurance can be expensive.
In fact, surveys have shown that being unable to afford insurance is one major reason people choose to drive without it. Fortunately, California has a special program that provides auto insurance at a reduced cost for qualifying drivers.
Established in 1999, California’s Low Cost Auto Insurance Program (CLCA) requires drivers to meet income eligibility limits, have a clean driving record, and own a vehicle valued at $25,000 or less. Qualifying drivers are not required to purchase the higher standard liability limits. The basic policy provides liability limits of:
- $10,000 per person bodily injury
- $20,000 per accident bodily injury
- $3,000 per accident property damage
CLCA liability limits will remain unchanged when the standard liability limits increase.
The increases in policy premiums that accompany the increased insurance limits may force more drivers out of the standard insurance market and toward California’s lower cost and lower limits alternative.
What Happens When an Uninsured Driver Causes an Accident
If an uninsured driver is at fault for an accident, persons who were damaged have a few options for obtaining recovery. Uninsured motorist coverage (if purchased) will pay for injuries and property damage caused by uninsured motorists and hit-and-run drivers.
However, making a claim for uninsured motorist benefits is like making a claim for benefits against another insurance company. Plaintiffs must prove fault and damages against the other driver.
If uninsured motorist coverage is not available or inadequate, plaintiffs can bring a lawsuit directly against the uninsured motorist if the person can be located. The problem with this option is that many times, a person driving without insurance will not possess the resources to pay a judgment.
If the person injured by an uninsured motorist is also uninsured, there is still a right to recover damages, but the right of recovery is limited by California law. A person who was not insured when injured in a motor vehicle accident is not allowed to recover compensation for non-economic losses such as pain, suffering, and physical impairment.
This limitation does not apply when the at-fault uninsured driver was charged with and convicted of DUI.
A Law Firm You Can Turn to For Help After Being Injured By an Uninsured Driver
Requiring drivers to maintain auto liability insurance assures that there are resources available to pay for the damage caused by accidents. When people get into accidents with uninsured motorists, they have fewer options for recovery and may not be able to be fully compensated for their losses.
The northern California personal injury attorneys at Curtis Legal Group understand the frustrations of recovering compensation after an accident with an uninsured motorist. With over 100 years of combined legal experience, Curtis Legal Group prioritizes the financial well-being of clients and fights to obtain every available dollar of compensation.
Schedule a free consultation with Curtis Legal Group in their Sacramento, Fresno, Modesto, or Stockton offices.