California’s Financial Responsibility Law requires drivers to prove they can cover the costs of damages or injuries resulting from a car accident. This law is designed to ensure that individuals who are involved in accidents can compensate victims for medical bills, vehicle repairs, and other losses. To meet this requirement, drivers must carry a minimum amount of auto insurance, specifically liability coverage, which includes bodily injury and property damage protection. The state’s minimum auto insurance requirements are 15/30/5, which means $15,000 for bodily injury per person, $30,000 for bodily injury per accident, and $5,000 for property damage. Alternatively, drivers can meet financial responsibility by showing proof of self-insurance or depositing a large sum of money with the state.
The law is enforced by the Department of Motor Vehicles (DMV), which may suspend or revoke the registration of a vehicle if the driver fails to provide proof of financial responsibility after an accident or upon request. California law also requires drivers to carry proof of insurance when driving, and failure to do so can result in fines, license suspensions, or even vehicle impoundment. This law aims to reduce the financial burden on victims of car accidents by ensuring that drivers are financially responsible and have the means to compensate others in the event of an accident.
