Financial Liability Laws

California Financial Liability Laws

Accidents can happen, and it’s often inevitable. In the state of California drivers who operate cars and other vehicles can be financially liable for causing accidents according to the following laws:

  • Financial responsibility is required of every driver and owner of a motor vehicle at all times. Low cost auto policies are available in every county of the state for qualified low income persons.  The cost differs depending on the county.
  • Every driver and every owner of a motor vehicle must carry evidence of financial responsibility in their motor vehicle at all times and be ready to present such evidence at the demand of a peace officer; failure to comply carries a fine between $100 and $200, plus additional assessment penalties, for the 1st infraction and a fine between $200 and $500, plus additional assessment penalties, for any subsequent infraction within 3 years of the 1st.
  • Minimum liability insurance coverage must be at least $15,000 for bodily injury or death of each person as a result of any 1 accident and $30,000 for bodily or injury or death of all persons as a result of any 1 accident and at least $5,000 for damage to property as a result of any 1 accident.
  • State has non-resident service of process law. Guest may sue driver.

 

This article about California Financial Liability Laws was last updated in 2017. If any of our information is incomplete or outdated please let us know. Thank you!