Getting insurance is important when purchasing a car. Paying off the insurance may be quite hard for the policy holder, considering that it should be paid for quite a long time and the amount is not small, to begin with. However, the benefits of getting insurance are definitely worthwhile, since people can never be too sure about the safety of the future.

Many states, including California, have laws regarding car insurance. California car insurance law affirms that every driver in the state should have their car insurance with them whenever they drive their own or someone else's car. Even those who do not drive but have a vehicle should have it insured.

Under the state's Compulsory Financial Responsibility Law, drivers and owners of automobiles are financially responsible for their actions on the road. That means, if a driver gets into a car accident that results to a fatality or injury of one person, the driver or owner should compensate for $15,000. If there are multiple deaths or injury, it will increase to $30,000. In addition to that, $5,000 of property damage is liable to the party responsible.

The California car insurance law assures every driver that the other drivers on the road are covered by liability insurance. Those who have automobile insurance also get to renew their registration easily – through the Internet, over the phone or at a self-service terminal – and they won't have to submit a proof of the insurance if they have to renew the registration of their privately-used vehicle.

Under California law, car insurance companies are now required to report the insurance status of all privately-used vehicles to the Department of Motor Vehicles. Law enforcement and court personnel also have access to DMV documents to verify the status of insurance of a particular car in California.

The registration of a vehicle may be suspended if the liability insurance was proven to have been cancelled, if the insurance company didn't provide proof of insurance, or if the owner/ driver provided false insurance information to the DMV.

The importance of purchasing and carrying the proof of the insurance all the time cannot be emphasized any further. It should be available in case a law enforcer asks for it, when renewing car registration, or when the car gets into a traffic collision.