Automobile (Insurance Requirements for California Drivers)
Assembly Bill 650 (Speier) Vehicles: financial responsibility (9/30/96)
California law requires each person who applies to register a vehicle to submit to the California Department of Motor Vehicles (DMV) any one of several forms of evidence that the applicant is in compliance with the financial responsibility laws of California. Also, every person who drives a motor vehicle that is required to be registered in this state must provide evidence of financial responsibility for the vehicle upon demand by a peace officer.
If an employee is driving a motor vehicle owned, operated, or leased by an employer, it would require the employer to assume the responsibility for proof of financial responsibility for the vehicle.
A peace officer cannot stop a vehicle for the sole purpose of determining whether the vehicle is being driven in violation of the financial responsibility provision. Failure to provide evidence of financial responsibility as required is an infraction for which a fine may be imposed. For good cause, a court may order the impounding of a person's vehicle, if that person violates the financial responsibility provision.
DMV - Registration Branch