Risk of Suspended License
If you are involved in a car accident and the DMV finds out that you did not have valid car insurance at the time (either from the police or because someone filed an SR-1 Form), they will automatically suspend your license for not less than one (1) year unless you can provide proof of valid insurance.
No Non-Economic Damages
Under California’s Proposition 213, if you are injured in an accident that was not your fault, but you did not have valid auto insurance at the time you were driving, you can only recover your economic damages (e.g., medical bills, lost wages, property damage, etc…). You cannot recover your non-economic damages such as physical pain and emotional distress. This significantly lowers the value of your injury claim.
It is against the law to drive a vehicle without minimum insurance of $15,000 per person / $30,000 per accident in California. However, when gas is $7 a gallon and Covid-19 money dried up, auto insurance payments are the first thing to go for many California resident’s budgets.
Summary of Proposition 213 in CA
If you get into a car accident while driving without valid auto insurance in California, you risk having your driver’s license suspended by the DMV for a period of up to one (1) year. Additionally, if you are injured in the accident, you will only be able to recover the value of your medical bills, property damage, and/or lost wages. You will be barred from recovering any compensation for your pain and suffering, even if the accident was not your fault.
In conclusion, if you are driving in California, buy yourself at least the minim $15k / $30k bodily injury liability insurance to protect yourself in the event you are injured by a negligent driver.