What is an Auto Insurance Policy?
What is the California Financial Responsibility Law?
My driver license was suspended. Can I get a restricted driver license during my suspension?
How do I get my license back after my suspension is over?
I want to insure my vehicle. What type of coverage(s) should I get?

What is an Auto Insurance Policy?  to top

An insurance policy is a legally binding contract between an insurance company and the person who buys the policy, commonly called the "insured" or the "policyholder." In exchange for payment of a specified sum of money, called the "premium," the insurance company agrees to pay for certain types of loss or damage as specified by the contract. When a loss occurs which meets all of the requirements described by the terms of an insurance policy, the loss is said to be "covered" by that policy.

What is the California Financial Responsibility Law?  to top

California’s Compulsory Financial Responsibility Law requires every driver and owner of a motor vehicle to be financially responsible for their actions. The statutory minimum limits of liability insurance in California are as follows:

Bodily Injury

  •  $15,000 for death or injury of any one person, any one accident.
  •  $30,000 for all persons in any one accident.

Property Damage

  •  $5,000 for any one accident.
There are four ways to accomplish financial responsibility:

1. Coverage by a motor vehicle or automobile liability insurance policy;
2. A cash deposit of $35,000 with the Department of Motor Vehicles (DMV);
3. A certificate of self-insurance issued by DMV to owners of fleets of more than 25 vehicles; or
4. A surety bond for $35,000 obtained from an insurance company licensed to do business in California.
When your car is in an accident for which you are found legally liable, bodily injury (BI) liability covers your liability to others for injuries to them. Property damage (PD) liability covers your liability for damage to someone else’s property.

A policy with bodily injury of $15,000/$30,000 and property damage of $5,000 will pay out as follows:

  •  The maximum limit for one person’s medical expenses is $15,000 under the bodily injury portion;
  •  If two or more people are injured, the maximum limit for the accident will be $30,000;
  •  The maximum limit for damage to other people’s property (their car, their fence, etc.) is $5,000.

This coverage is an individually priced component of your overall policy. Comprehensive coverage (other than collision), uninsured motorist, medical payments and collision insurance are not required by California law.

To learn more about the different coverage types, click here.

My driver license was suspended. Can I get a restricted driver license during my suspension?
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If your driver license is suspended because you had a motor vehicle accident and you did not have proper automobile insurance, cited for Driving Under the Influence of drugs or alcohol “DUI”, cited for not having automobile insurance, cited for violation of a probation or have been deemed a negligent operator, you may be eligible to obtain a noncommercial restricted driver license during the mandatory one year suspension period provided you do the following:

  •  File proof of financial responsibility (SR 22) with DMV A SR 22 can be obtained from your insurance company

How do I get my license back after my suspension is over?  to top

If your driver license has not expired, you will need to:

  •  Pay a $55.00 reissue fee.
  •  Provide proof of insurance (SR 22). You must maintain this insurance for 3 years.

If your driver license has expired or your driving privilege was revoked, you will need to:

  •  Reapply for a new driver license.
  •  Pay a $55 reissue fee.
  •  Provide proof of insurance (SR 22). You must maintain this insurance for 3 years.


I want to insure my vehicle. What type of coverage(s) should I get?  to top

Go to our Understanding Coverage Types page to read about the different types of coverage for auto insurance.