What happens if you get in a car accident and you don’t have car insurance in California?

Cortlynn Stark, The Sum
·5 min read
6

About one-in-eight drivers across the country didn’t have car insurance in 2019. In California, the number is even higher.

That’s according to a 2021 study from the Insurance Research Council. The nationwide number of drivers at 12.6% without insurance jumps to 16.6% in California. That was the 10th highest state, according to the Insurance Information Institute (Mississippi took first place at 29.4%).

Car insurance rates — which increased 18.9% over the last year, according to the September Consumer Price Index — are also more costly in California. A California driver with a clean record pays an average of $2,476, or $205 a month, according to USAToday’s BluePrint. The national average is $2,150 annually, or $179 a month.

All drivers in California are legally required to have car insurance. And they have to carry a copy of the card in their vehicle (digital copies are acceptable).

What happens if you — or the other driver — get in a crash without insurance? Here’s what you should know:

What’s the minimum for coverage?

California’s minimum auto insurance requirements are lower than many other states. For now.

Here’s the coverage you need to have — at a minimum — in California, according to the state’s Department of Motor Vehicles.

  • $15,000 for injury or death to one person

  • $30,000 for injury or death to more than one person

  • $5,000 for damage to property

Those numbers have been in place since 1967. The $15,000 required at that time, for example, is worth more than $137,000 in 2023. Beginning Jan. 1, 2025, those minimum numbers will go up.

  • $30,000 for injury or death to one person

  • $60,000 for injury or death to more than one person

  • $15,000 for damage to property

If you can’t afford liability insurance, you could be eligible for the California Low Cost Automobile Insurance Program. Visit mylowcostauto.com or call 1-866-602-8861 to learn more.

There are four types of acceptable insurance:

  • Motor vehicle liability insurance policy

  • Cash deposit of $35,000 with the DMV

  • DMV-issued self-insurance certificate

  • Surety bond for $35,000 from a company licensed to do business in California

For drivers under age 18, parents or guardians take on financial responsibility if the driver gets in a crash.

What fines do you face for driving without insurance?

There are consequences for driving without insurance.

If you’re caught driving without insurance, you can be fined, your vehicle could be impounded, and your license and registration could be suspended.

For the first offense, you could pay a fee of $100 to $200. For the second offense, that’s between $200 to $500, according to Kelly Blue Book. You could also face penalty assessments, according to the Consumer Federation of America.

If you get in a crash without insurance coverage, your license will be suspended for up to four years — regardless of who was at fault, according to the DMV’s driver’s handbook. If, during the last three years of suspension, you provide a California Insurance Proof Certificate and maintain it, you could get your license back.

If you don’t give proof of insurance to the DMV, it will suspend the car’s registration. Until that proof is submitted, you can’t drive or park it on public roads.

That happens if you do the following:

  • Don’t submit insurance information to the DMV within 30 days of being issued a registration card

  • Don’t submit a replacement policy to the DMV within 45 days of canceling your insurance (or your insurer canceling your policy)

  • You (as the vehicle owner) provided false proof of insurance to obtain the registration

If you’re at fault for a car accident, you’ll be responsible for paying the other person’s vehicle and medical expenses, according to Bankrate. You could be sued if you get into an accident without insurance.

California is also a “no pay, no play” state. That means you can’t pursue non-economic damages such as emotional distress after an accident if you were uninsured at the time of the crash — regardless of who was at fault, according to WalletHub.

Plus, if you’re at least 51% at fault, your premium can increase (called a surcharge) when you renew your policy.

How can you avoid penalties?

To maintain your car insurance, Kelly Blue Book recommends these steps:

  • Pay your bill on time

  • Ensure your new policy is in effect before canceling the old one when switching companies

  • Get a new policy quickly if your insurance company cancels or doesn’t renew your coverage

What if the other driver in an accident doesn’t have insurance?

While California drivers aren’t required to carry uninsured motorist coverage, insurers are required to offer it. You might have it already. (You have to sign a waiver if you choose not to buy the coverage). This coverage is for accidents when the other driver is at fault but either doesn’t have insurance or doesn’t have enough insurance.

There are three types of this coverage, according to California’s Automobile Insurance Information Guide.

  • Uninsured motorist bodily injury

  • Underinsured motorist

  • Uninsured motorist property damage

If the other driver is at fault and they don’t have insurance, they’re still responsible for paying.

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