Auto Insurance in Canada

The Golden state follows the Financial Responsibility Law. This means that motorists must carry the minimum liability limits of car insurance set by the state’s laws in order to ensure that a third party will receive compensation after sustaining injuries or damage to property as a result of a traffic accident. The mandatory limit is set at 15/30/5 which breaks down into the following:

$15,000 for bodily injury to one person
$30,000 for bodily injury to two or more people
$5,000 for property damage
As of 2006 the law made it mandatory for California auto insurance providers to electronically report private-use vehicle policy information to the Department of Motor Vehicles (DMV). If an insurer notifies the DMV that coverage has been cancelled the motorist must obtain a new policy within 45 days and proof would need to be submitted; failure to do so can result in the suspension of a vehicle’s registration. This rule was put into place to protect the residents who occupy the roadways from being involved with a driver who lacks coverage and keep uninsured motorists off of the streets.