Uninsured California Drivers - No Proof of Insurance? A Suspended License License is Coming

Two new 2006 laws have made it much harder to go without car insurance in the state of California. The first, Assembly Bill 2709, came into effect on July 1st, 2006. This law gives  police officers the ability to electronically verify that your insurance is current. This has long been a loophole that even normally honest people took advantage of, because many car insurance companies send out a proof of insurance that shows the policy dates, typically a six month span.

What many people figured out is that even if you call and cancel your policy as soon as you get your proof of insurance, you still have that little piece of paper. As long as you showed it when you were stopped, the officer could have no way of knowing if the policy was still in effect. Now, officers can connect to the DMV’s computer system and verify your proof of insurance. Insurance cheaters all over the state are cringing!

Another Loophole Closed

The other document that you need in your car is proof of registration. In order to get your registration from the DMV, you need to have proof of insurance on the vehicle. Many dishonest people have tried the same tactic with the DMV- and succeeded. Simply sign up for insurance, get your proof in the mail and take it over to the DMV. Then once you get your registration, you just cancel the policy. The DMV will find out that you cancelled your insurance, but they can’t do anything until you try to renew your registration, right?

That was true until October 1, 2006. On that date, Senate Bill 1500 became law. This allows the DMV to suspend your registration if your insurance stops. Even if you forget to send your check to the insurance company, until you make things right not just with your auto insurance company, but with the DMV too, you’d better not get stopped by a police officer. Not only will he or she be able to see that your insurance has lapsed, you’ll be in big trouble for driving with suspended registration. How’s that for incentive to stay legal?

Stay Legal, Pay Less

Of course, many of the shifty people who perpetrate these schemes are doing it just to save a buck, and because they figure that they can get away with it. However, there are folks who are trying to be honest, but they simply can’t afford to pay. Car insurance can be very expensive, and when you’re living paycheck to paycheck, it can be out of your reach. Luckily, there is help out there. With these new laws on the books, California car insurance companies are realizing that they need to help honest citizens stay legal. This means that there are deals out there, you might just need to do a little hunting.

With the internet and sites like carinsurancerates.com, it’s easier than ever to find a rate that you can afford to pay. Don’t risk losing your ability to drive! Other states are sure to follow California in closing this loophole, so don’t wait until you get stung. Your state could be next! Shop around and find the best car insurance policy and stay legal without breaking the bank.