Car Insurance in California

Insurance is a mandatory requirement of all vehicles that are either operated on California roads and highways. There are numerous insurance companies and agents who can provide coverage policies and quotes which may differ throughout the state and counties, therefore contact your local Mission Viejo auto insurance agent to obtain the most recent state information on coverage for the privilege of driving in our beautiful state.

Because of the mandate of the vehicle having to be insured, you must carry with you whenever you’re driving, proof of insurance which will definitely be asked of you to produce during any one of the below specified situations:

  • When you are requested or ordered to do so by a law enforcement officer;
  • When you want to renew the vehicle’s registration, and;
  • When your vehicle has been involved in a traffic collision.

The California Vehicle Code requires all the insurance companies within the state to report private-use car insurance information via electronic means to the Department of Motor Vehicles (DMV).  These companies are however exempted from reporting the information of vehicles that are covered by business and commercial insurance policies. The electronic reporting of this insurance information took effect in 2006. It allows the DMV to easily monitor the insurance coverage of the vehicles after which they will take appropriate measures when an insurance offence is committed. Law enforcement institutions together with court personnel can also electronically access the insurance reports found in the DMV records.

If you fail to display insurance coverage on your vehicle, as a first time offender, you may end up being fined a minimum of $100 and a maximum of $200 together with some additional assessment penalties. Any subsequent infractions within a period of three years from the first offence may lead to a fine of between $200 and $500 in addition to the other assessment penalties.

The minimum liability financial responsibility for the state of California is at least $15,000 for body injury or the death of an individual person due to a single accident. On the other hand, the minimum liability financial responsibility for bodily injury or death of people due to a single accident is $30,000. As a result of a single accident, the minimum liability for damage of property is at least $5,000.

Car insurance helps you to financially cover some given types of losses and obligations as a result of owning a vehicle. For instance, with elaborate insurance coverage, you will be able to have your car fixed or replaced as a result of an accident or theft.

The main insurance policy coverage in California are:

  • Bodily injury liability coverage that pays for the driver’s and passengers’ injury or death in case of an accident. Legal costs are paid for by the insurance company.
  • Property damage liability coverage pays for someone else’s property damage as a result of your car being involved in an accident. Legal costs are also paid for by the insurance company.

In California, there is a low cost insurance provision for those who are not able to afford the normal insurance coverage. You will only be required to pay less than $338 annual fee. This is very cheap compared to the thousands of dollars that you would have otherwise paid. This coverage is available for those income eligible residents who have had past good driving records.

There are several documents that can be produced as a means to prove that one may be eligible for low cost insurance coverage. These are a Medi-Cal card, payroll stub, a 1099 form, a copy of state or federal income tax return for the previous year, a verification letter from an employer and a pension letter/social security letter. Others are Electronic Benefit Transfer, a Utility Company Lifetime Verification, Low Income Home Energy Assistance, SSI, Cal works, CalFresh, Bank statements proving your Social Security Payment Deposits, State of California Employment Development Department letter or a Notification from California Work Opportunity and Responsibility to Kids.

Visit for the local insurance agent who could assist you in determining which auto policy coverage would best fit your needs,

Keep your eyes on the road, obey the laws and drive safely at all times. Happy Driving!