The California Department of Motor vehicles (DMV) is the body mandated under the law to facilitate traffic safety. Its role is not only to ensure that motorists are properly trained and qualified to drive, but also to ascertain that motor vehicles are properly registered and insured. In a nutshell, California DMV governs the safety and wellbeing of motorists and other road users. Auto Insurance California must therefore conform to the standards laid out by California DMV for it to be valid.

California DMV has laid out the basic guidelines to be observed by all motorists in relation to Auto Insurance. The minimum requirements enshrined in the California Vehicle Code amended the nature of financial responsibility and Insurance of motor vehicles in California. The main objective of the shift was to ensure restitution in the event of an accident without overly focusing on apportioning blame. Major highlights following the change are analysed below:

First, all Insurance Companies providing Auto Insurance are expected to furnish the California DMV with information concerning private-use vehicle insurance electronically. This requirement however does not extend to motor vehicles insured for business or commercial purposes. This mandatory provision has greatly assisted DMV in its supervisory role in Auto insurance.

Secondly, for any vehicle to be driven legally in California, financial responsibility must be undertaken by the owner or user thereof. The law has set out four types of financial responsibility as follows:

1. Deposit of $35,000 in cash with the California DMV;

2. Undertaking of a motor vehicle insurance policy;

3. Obtaining a surety bond from a licensed company conducting business in California in the tune of $ 35,000;

4. Obtaining a DMV Certificate for self insurance.

Besides undertaking financial responsibility in any of the above mentioned ways, evidence of the same must be furnished to law enforcement officers whenever required. This may be after an accident or at any time when required to do so in traffic stops or when renewing the vehicle registration. It is therefore very important for a motorist to always carry documentation evidencing financial responsibility at all times when driving.

For private passenger users, Auto Insurance California laws have laid out the minimum liability requirements. The California Insurance Code lays them out as follows:
* A sum of $5,000 to cover damaged property;

* A sum of $15,000 covering injury or death to one person;

* A sum of $ 30,000 where injury or death is occasioned to more than one person.

In conclusion, it is worthy to note that all owners of motor vehicles are required to abide by the code whether or not they are driving their motor vehicles. The DMV may also suspend registration of a motor vehicle if a policy is nullified and a replacement has not been sought in time. This may also occur if the insured person fails to supply the DMV with all information concerning the policy after issuance of a registration card or transfer of ownership.

Auto Insurance California – For an Auto Insurance cover from a reputable Insurance company in California, which complies with the DMV requirements, please visit our website and be insured today.