The California Department of Insurance states that CA legislature passed a law requiring motorists to produce proof of insurance before the DMV renews the vehicle registration. The new legislation also requires motorists to display proof of insurance when they are stopped by a police officer for traffic violations. Drivers who cannot do so may be subject to fines and other penalties.

The CA DOI specifically notes that proof of financial responsibility must be shown when you:

• Are asked for it by a law enforcement officer;
• Have an accident;
• Register your car or renew its registration; or
• Get your car inspected

If you anticipate acquiring a new, replacement, or additional vehicle, you need to contact your insurance company prior to taking possession. It is necessary to determine what coverage will be extended and what coverage will have to be added to your existing policy. If the new vehicle is financed, also check with the lender for their insurance requirements.

It is your responsibility to have insurance on a car that you are purchasing whether from a new or used car dealer or from a private party. Many dealerships will ask for proof of insurance when you are going to drive off the lot with the car, especially if you have financed the vehicle since the car is the lien holder's asset however it is your responsibility to have at least minimum auto insurance for California on the car and likely also physical damage coverages of collision and comprehensive on your vehicle if the lien holder requires you to carry this.

You can contact the California Department of Insurance to ask specific information about the situation you described and if the dealership had any requirement to check for insurance though to the best of our knowledge this is not a state mandate.

If this type of hit and run incident happened to you, you no know how important it is to either inform your current insurer that you have an additional car to place on your insurance policy or if this is your first car on a policy to place insurance on it before taking possession of it.

If you did already have an auto insurance policy in place then you may check to see if there was any coverage extended to the car even though it was not officially added to the policy. If you were replacing a car on your policy then many times the coverages of the car you traded in or are replacing on the policy will extend to the "new" car for a few days until it is placed on the policy.

When buying a car in California be sure to read the Car Buyers Bill of Rights which is available for viewing on the CA DMV site. The law establishing the Car Buyer's Bill of Rights became effective July 1, 2006 and substantially impacts the purchase of new and used vehicles.

If you are in need of a car insurance policy you can shop with us online anytime day or night, weekday or weekend.