Senate Bill 1500 was signed in 2004 by Governor Arnold Schwarzenegger and was designed to reduce the risk of economic losses sustained as the result of collisions involving uninsured motorists.
Recent Changes in California Law
As of Oct. 1, 2006, vehicle owners living in California without auto insurance could have their vehicle registrations suspended.
DMV statistics show that 1.4 million drivers have been convicted since 2001 for driving without proper insurance coverage, and 78,000 drivers were convicted for failing to have liability insurance when involved in a collision.
SB 1500 requires the Department of Motor Vehicles (DMV) to notify a customer about possible vehicle registration suspension...
- if their insurance company fails to provide proof of insurance within 30 days of a vehicle’s initial registration with the department, or
- within 45 days once DMV has been notified by an insurance carrier about a policy cancellation or change in coverage.
The initial provision of SB 1500, which took effect January 1, 2006, requires that insurance companies doing business in California electronically report all private-use vehicles' (except trailers, off-highway vehicles or boats) liability policies to DMV, both when a policy is issued and/or cancelled.
Once a vehicle registration has been suspended, customers must submit evidence of a valid vehicle insurance policy and pay a $14 reinstatement fee before a registration can be reinstated or renewed.
As of October 1, 2006, the toll free number customers must call to reach a member of the Vehicle Registration Financial Responsibility Program is 1.866.664.4545.