Why do I need car insurance in order to drive?

In every state in America, the law requires that you have automobile insurance if you own and operate a vehicle on public roadways. California is no exception. California Vehicle Code § 16020 et seq. requires that any owner/operator of a vehicle have the bare minimum of insurance – usually called “liability” coverage – and keep proof of the same in the vehicle at all times. Liability insurance must provide at least the following basic coverage: (1) at least $15,000 in coverage for personal injury to another person; (2) at least $30,000 in total coverage for an accident involving two or more injured parties; and (3) at least $5,000 in coverage for property damage (California Insurance Code § 11580.1; California Vehicle Code § 16056(a)). These minimum requirements are based on the public policy that – in general – all drivers benefit from being insured. This protects the at-fault driver from declaring bankruptcy or otherwise losing their entire savings due to an accident. It also protects safe drivers who are injured by a negligent driver without assets, insuring there will be some insurance coverage to compensate for their injuries.

If you have any questions about how this information applies to your situation, you should consult with a car accident attorney immediately.