Proof Requirements - Proof Of Financial Responsibility - Vehicle - CA

Section § 16430

This law defines what 'proof of financial responsibility' means for California vehicle owners. Basically, it's the insurance or coverage required by law if you own or operate a car. Right now, you need coverage that will pay at least $30,000 for injuries to one person, $60,000 for injuries to multiple people, and $15,000 for property damage in any single accident. If someone's property damage is under $1,000, it doesn’t count. In 2035, these amounts will increase substantially: an extra $20,000 per person for injuries or deaths, an extra $40,000 for injuries or deaths total, and an extra $10,000 for property damage. The Insurance Commissioner will work with insurance companies to adjust their rates to meet these upcoming changes. The rules will start being enforced from January 1, 2025.

(a) “Proof of financial responsibility,” when required by this code, means proof of financial responsibility resulting from the ownership or operation of a motor vehicle and arising by reason of personal injury to, or death of, any one person, of at least thirty thousand dollars ($30,000), and, subject to the limit of thirty thousand dollars ($30,000) for each person injured or killed, of at least sixty thousand dollars ($60,000) for the injury to, or the death of, two or more persons in any one accident, and for damages to property in excess of one thousand dollars ($1,000), of at least fifteen thousand dollars ($15,000) resulting from any one accident. Proof of financial responsibility may be given in any manner authorized in this chapter.

(b)

(1) On January 1, 2035, the minimum liability coverage shall be increased by twenty thousand dollars ($20,000) for bodily injury or death for each person, by forty thousand dollars ($40,000) for bodily injury or death for all persons, and by ten thousand dollars ($10,000) for property damage.

(2) The Insurance Commissioner shall, by July 1, 2033, distribute a bulletin soliciting rate applications from insurers to effectuate the January 1, 2035, increase and shall process and approve them consistent with the manner outlined in Section 12960 of the Insurance Code.

proof of financial responsibility minimum liability coverage bodily injury liability ...

Section § 16431

This section explains how people can prove they have car insurance (called 'proof of financial responsibility') in California. If your driver's license was taken away or restricted for certain reasons, you have to prove you have insurance for all your registered vehicles before getting your license back, unless the vehicles are in storage. If you're from another state, you can use an insurance policy from your home state if it meets California's requirements. But if you move to California, you need to update your proof of insurance to match California's rules before you're allowed to have a license here.

The law makes it clear that insurance policies must meet minimum coverage requirements and this part came into effect in September 2005.

(a) Proof of financial responsibility may be given by the written certificate or certificates of any insurance carrier duly authorized to do business within the state, that it has issued to or for the benefit of the person named therein a motor vehicle liability policy as defined in Section 16450, an automobile liability policy as defined in Section 16054, or any other liability policy issued for vehicles with less than four wheels that meets the requirements of Section 16056, which, at the date of the certificate or certificates, is in full force and effect. Except as provided in subdivision (b), the certificate or certificates issued under any liability policy set forth in this section shall be accepted by the department and satisfy the requirements of proof of financial responsibility of this chapter. Nothing in this chapter requires that an insurance carrier certify that there is coverage broader than that provided by the actual policy issued by the carrier.

(b) The department shall require that a person whose driver’s license has been revoked, suspended, or restricted under Section 13350, 13351, 13352, 13353, 13353.2, 13353.3, 13353.7, or 16370, provide, as proof of financial responsibility, a certificate or certificates that covers all motor vehicles registered to the person before reinstatement of his or her driver’s license.

(c) Subdivision (b) does not apply to vehicles in storage if the current license plates and registration cards are surrendered to the department in Sacramento.

(d)

(1) A resident of another state may provide proof of financial responsibility when required to do so under this code from a company authorized to do business in that person’s state of residence, if that proof is satisfactory to the department, covers the operation of a vehicle in this state, and meets the minimum coverage limit requirements specified in Section 16056.

(2) If the person specified in paragraph (1) becomes a resident of this state during the period that the person is required to maintain proof of financial responsibility with the department, the department may not issue or return a driver’s license to that person until the person files a written certificate or certificates, as authorized under subdivision (a), that meets the minimum coverage limit requirements specified in Section 16056 and covers the period during which the person is required to maintain proof of financial responsibility.

(e) This section shall become operative on September 20, 2005.

proof of financial responsibility motor vehicle liability policy driver's license reinstatement ...

Section § 16433

If a car insurance policy is canceled, a certificate must confirm this and tell the department in writing within 10 days after the cancellation is final.

The law doesn't make the insurance cover any time past the cancellation date.

A certificate or certificates shall certify, if the liability policy therein cited has been canceled, that the department shall be notified in writing within 10 days after the cancellation of insurance becomes final.

Nothing in this section extends coverage beyond the date stated in the notice of cancellation.

certificate of insurance liability policy cancellation cancellation notification ...

Section § 16434

This law states that you can prove you are financially responsible, which is often required for driving, by having a bond. This bond must cover certain amounts and allow the state to help someone get money from you if your vehicle causes over $1,000 in damage to property or injures someone. This specific rule started being effective on January 1, 2017.

(a) Proof of financial responsibility may be given by a bond. The bond shall be conditioned for the payment of the amount specified in Section 16430, and shall provide for the entry of judgment on motion of the state in favor of any holder of any final judgment on account of damages to property over one thousand dollars ($1,000) in amount, or injury to any person caused by the operation of the person’s motor vehicle.

(b) This section shall become operative on January 1, 2017.

financial responsibility bond vehicle operation liability property damage over $1 ...

Section § 16435

This law section states that starting January 1, 2025, a person can show they are financially responsible for operating a motor vehicle by depositing $75,000. However, they can't do this if they have any unpaid judgments for damages caused by driving. On January 1, 2035, the deposit amount will increase to $125,000. This means the deposit acts like insurance to cover potential vehicle-related damages.

(a) Proof of financial responsibility may be given by the deposit of seventy-five thousand dollars ($75,000) as provided in Section 16054.2. The department shall not accept a deposit where any judgment theretofore obtained against that person as a result of damages arising from the operation of any motor vehicle shall not have been paid in full.

(b) The deposit requirement in subdivision (a) shall be increased by fifty thousand dollars ($50,000) on January 1, 2035.

proof of financial responsibility motor vehicle deposit damage judgment ...

Section § 16436

This law allows a person to prove they have financial responsibility for accidents by having their employer, who is a self-insurer, file a written certificate. This certificate must be issued by the department and names the employee covered. It obligates the self-insurer to cover damages caused by the employee while driving a company vehicle during work. The employee's driver's license will be restricted to only driving these work vehicles. The self-insurer can cancel this certificate with 10 days' written notice to the department.

Proof of financial responsibility may be given by the written certificate of a self-insurer holding a certificate of self-insurance for bodily injury and property damage issued by the department.

The certification shall name the employee in whose behalf it is filed and shall bind the self-insurer in a like manner and to the same amounts as provided for in Section 16430 for damages arising from the operation of a motor vehicle by the employee within the scope of his or her employment by the self-insurer. In that case, the department shall restrict any driver’s license issued to the employee to the operation of motor vehicles owned by the self-insurer within the scope of his or her employment by the self-insurer.

The certificate shall be canceled upon 10 days’ prior written notice to the department by the self-insurer.

self-insurer certificate financial responsibility bodily injury coverage ...