Why Car Insurance is Important in California

Auto on a Flatbed Truck — Roseville, CA — Frank Penney Injury Lawyers

Read the blog from Frank Penney Injury Lawyers in Roseville, CA below.

Up to 4.1 million drivers in the State of California are uninsured, according to the Insurance Research Council.

If you’re one of these drivers, read this article to understand why car insurance is important to have and what can happen if you don’t.

Is car insurance legally required in California?

Yes, car insurance is required in California. When you drive a vehicle (even a motorcycle), you need to have financial coverage to protect your passengers and your vehicle in case of a car or motorcycle accident. Auto insurance provides this coverage and protects you financially from unpredictable events like accidents.

What are the minimum insurance requirements?

It is mandatory to have the following minimum auto insurance coverage (which is also needed to register your vehicle with the California DMV):

Bodily Injury/Death Liability of one person: $15,000
Bodily Injury/Death Liability of more than one person: $30,000
Property Damage: $5,000

What happens if I’m caught driving without insurance in California?

The first offense can cost you between $100 and $450.
For the second offense within three years, you could be fined between $200 and $2,500.
Police can have your car impounded.
The DMV can suspend your driver’s license for up to 4 years.
If you cause an accident while driving without insurance, you can be personally sued for damages.

What if I have adequate insurance, but am hit by an uninsured motorist?

There are various types of coverage you can buy that will help to protect you in the event of an accident. Uninsured and underinsured motorist coverage (UM/UIM) is found within your own insurance policy and is designed to help you pay for bills associated with a crash that was caused by another person who isn’t insured or is underinsured.

All insurance companies in California must offer you UM/UIM coverage unless you opt-out in writing. You also have the option of suing the driver directly for reimbursement of your medical expenses and other costs.

What is the impact on my insurance policy?

If you have to file a claim and collect under your UM/UIM policy, it will not raise your rates. If the accident is not your fault, your insurance company cannot raise your premiums for using this coverage.

Who is covered under my UM/UIM policy and how do I use it?

Anyone who is driving your vehicle with your permission, as well as any passengers in the vehicle, is covered if they are hit by an under-or uninsured person. The vehicle does not even have to be moving to qualify.

In order to assert a UM/UIM claim, you must establish that the other party was at fault and was actually uninsured. You must file a form SR-1, Report of Traffic Accident Occurring in California, within 10 days. Also, obtain an SR-19 from the DMV.

From there, you must submit a demand letter to your own insurance company to receive compensation for your expenses. Be sure to settle your UM/UIM claim within the 2-year statute of limitations in the state of California.

What is covered under my policy?

As is the case for any insurance claim where the other party is at fault, the following items are covered:

Medical bills
Loss of earnings
Loss of earning capacity
Physical pain
Daily Suffering
Emotional distress
Loss of enjoyment of life
Various out-of-pocket expenses such as household help
Any other harm caused

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When I first contacted the Law Offices of Frank D. Penney after my accident, I was frustrated with car insurance companies, and medical insurance companies; after all, I was in pain. He and his staff put me at ease instantly! It was such a relief to have someone working on MY BEHALF! They were able to settle my case for more than I initially thought it was worth. THANKS AGAIN!!!

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By Frank Penney • June 11, 2025

A driver was seriously injured Saturday evening in a crash on Highway 99 near Fresno Street, according to the California Highway Patrol. The incident occurred on the southbound shoulder of the highway, where a commercial big rig had pulled over due to mechanical issues. As the truck sat stopped on the shoulder, a Ford Taurus traveling at high speed veered onto the same shoulder and slammed into the back of the trailer. Authorities say the Taurus appeared to be driving recklessly before the collision. The impact left the car heavily damaged, and the driver—who was not wearing a seatbelt—was rushed to a local hospital with major injuries. “Our hearts go out to the injured driver,” the CHP said in a statement. “This incident serves as a stark reminder that excessive speed and reckless behavior can have devastating consequences.” The CHP is using the crash as an opportunity to remind all motorists to drive responsibly, follow traffic laws, and always wear a seatbelt. Experience unparalleled legal representation with Frank Penney Injury Law , the esteemed recipients of the CAOC Trial Attorney of the Year award. With over two decades of dedicated service, our team has consistently delivered record-setting results for accident victims in Northern, Central, and Southern California. Enjoy peace of mind with our no upfront fees policy. Contact us today at 888-888-0566 or through our website www.penneylaw.com for a FREE consultation. Frank Penney Injury Lawyers does not represent any of the parties mentioned above. Nevertheless, we sympathize with the victim and their families in this time of crisis.

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If you are involved in any type of personal injury due to the fault of someone else, our experienced team at Frank Penney Injury Lawyers in Roseville, CA can help. We are available to anyone in Northern California 24/7! Give us a call today to learn more at 888-888-0566. We will fight for your rights!