Do I Have to Have Auto Insurance?

If you live in California, state law requires you to prove that you can be responsible financially for any accident that you might be involved in, whether you caused it or not. Most people prove this financial viability by purchasing a policy from a company that offers autoinsurance. In California, you must carry a set amount of liability coverage with your policy, but the amounts for other parts of the policy can vary. Some people will tell you that autoinsurance is required in California, but this is not exactly true. You do have the option of putting down a $35,000 cash deposit with the Department of Motor Vehicles.