Purpose

• The purpose of the law is to prevent uninsured motorists from driving vehicles in California. Auto insurance companies must electronically report insurance information to the Department of Motor Vehicles, which electronically checks the auto insurance on all privately owned vehicles.
  
  

Requirements

• A driver must keep proof of insurance in his vehicle at all times. The minimum liability coverage necessary is $15,000 to pay for the injuries or death of one person and $30,000 to cover the injuries or death for more than one person involved in the accident. The property damage minimum is $15,000.
  
  

Penalties

• When an insurance company cancels a driver's policy, the driver has 45 days to submit papers to the DMV showing he has a new insurance policy. Within 30 days of registering a vehicle, a driver must provide proof of insurance. If the DMV does not receive proof of insurance, a driver's vehicle registration is suspended. As of September 2010, to reinstate the policy, a driver must provide proof of insurance and pay a $14 fee.