• California residents must carry liability insurance on their vehicles.Red cars image by Catabu from Fotolia.com
  
  Every state has its own laws regarding required types of automobile insurance and minimum amounts of coverage. In California, drivers need only maintain liability insurance to operate their vehicle. State law requires all insurance carriers to electronically report policy information to the Department of Motor Vehicles. Law enforcement and court personnel can access this database to ensure insurance compliance.
  
  

Liability Requirements

• California drivers must carry bodily injury and property damage liability---this insurance will pay out for damages incurred when the policy holder is found at fault for the accident. As of 2010, current coverage requirements include at least $15,000 for injury to one person, $30,000 for injury to two or more people and $5,000 for property damage.
  
  

Underinsured/Uninsured Motorists Coverage

• California law requires all insurance carriers in the state to offer underinsured/uninsured motorist coverage in at least the same amounts as standard liability insurance. While the law does not require drivers to have this insurance, they must sign a written waiver opting out of it, which the insurance company must keep on file. Those wishing to decline this coverage should contact their carrier for more information.
  
  

Options for Low-Income or High-Risk Drivers

• The California Low Cost Automobile Insurance Program provides policies that satisfy minimum coverage requirements to drivers meeting certain income guidelines who have good driving records. The program also considers the value of the vehicle to be insured and the program only applies in certain counties. Anyone with questions about this program can call 866-602-8861.
  
  Some drivers might have trouble finding a carrier to voluntarily write a policy for them---such as those with driving-related criminal convictions. The California Department of Insurance operates the California Automobile Assigned Risk Plan (CAARP), which helps these drivers obtain a policy. Every licensed carrier in the state must participate and the department assigns drivers in proportion to how much business the companies write in the state. Insurance rates are the same regardless of the issuing company and they must cover the applicant for three years. Anyone with questions about applying can call the office that administers the plan at 800-622-0954.
  
  

Penalties

• Driving without insurance can result in a host of penalties. The California DMV will suspend vehicle registration when a driver has not obtained a policy on a newly registered vehicle within 30 days of registration or when it receives notice that a driver has not obtained a new policy within 45 days of cancellation of a previous one. Other possible penalties include vehicle impoundment, license suspension and fines.
  
  

Vehicles Not In Use

• If a resident decides to stop using a currently registered vehicle for any reason, he must maintain liability insurance unless he submits an Affidavit for Non-Use to the DMV either through phone or online. The department website offers information on how to accomplish this.
  
  If the time comes to renew registration on a vehicle and the driver has decided that he will not operate the vehicle, he does not have to purchase insurance but must put the vehicle on planned non-operation status (PNO) and can do so online through the department website.