California Motorcycle Insurance Requirements

California does not require motorcycle insurance, but it does require that the person who owns a motorcycle or other two-wheeled vehicle to have the ability to pay for liability should he or she get into an accident. Liability covers Prop Damage and Bodily Injury you cause to other people. All motorcycle drivers and riders must wear a helmet in the State of California.

Alternatives to Purchasing Insurance in California

If you don’t want to purchase liability motorcycle insurance from an insurance company, California offers you some other options.

1. Cash Deposit: If motorcycle or other two-wheeled vehicle owner does not wish to purchase insurance, he or she must make a deposit of $35,000 (cash) with the California Department of Motor Vehicles. For more information on making a cash deposit, contact the CA DMV:

Department of Motor Vehicles
Financial Responsibility MS J237
P. O. Box 942884
Sacramento, CA 94284-0884
Phone: (916) 657-6520

2. Self-Insurance: Alternatively, the two-wheeled vehicle owner could obtain a self-insurance certificate. According to V C Section 16053, the CA DMV will review an application for self-insurance. If the CA DMV is satisfied that the applicant has more than 25 motor vehicles; and has the ability to pay any judgments against the applicant that are at least equal to the amounts listed in V C 16056, the CA DMV will issue the self-insurance certificate.

The amounts may change from year to year, and as of early 2012, the amounts are as follows:

• $15,000 for the cause of death or injury to one person in one accident;
• $30,000 for the cause of death or injury to two people in one accident; and
• $5,000 if the accident resulted only in injury or the destruction of property in one accident.

The vehicle involved in the accident must have been registered with the State of California or legally registered in another state.

3. Surety Bond: A two-wheeled vehicle owner may also, in the alternative, purchase a $35,000 surety bond. The bond must be purchased from a licensed California company. The Department of Insurance can provide a two-wheeled vehicle owner with a list of companies that qualify under the CA DMV regulations, and can be reached at (800) 927-4357.

Minimum California Insurance Requirements for Liability

In the event you don’t use one of the above option’s you’ll need to purchase liability insurance coverage from a California registered insurance company. Before you finalize your insurance, be sure to get an insurance quote from several companies in order to compare rates. The rates vary from insurance company to insurance company. The minimum insurance required is the same as outlined in V C 16056 for self-insurance rates:

• $5,000 for property damage
• $15,000 for injury or death to one person
• $30,000 for injury or death to more than one person

Once the two-wheeled vehicle driver/owner purchases a policy, the insurance company will forward an identification card. The identification card must be kept on the person while riding the two-wheeled vehicle. If the owner/driver is stopped for any reason, the police will ask for proof of insurance, proof of self-insurance or proof that you have met CA DMV’s other coverage regulations.

Some insurance companies may also offer incentives, which could save a two-wheeled vehicle owner/driver significantly in insurance premiums over the years. When asking about pricing, also ask about incentives, such as lower premiums for length of time with the insurance company, or safe driver rates.

Definition of Two-Wheeled Vehicle That Require Liability Insurance Coverage

California defines a two-wheeled vehicle as a vehicle with two or three wheels that has a seat for a rider. Electric vehicles, such as scooters, are also considered two-wheeled vehicles, as long as the vehicle’s weight does not exceed 2,500 pounds and the fastest it can go is 45 mph.

A motorcycle with an engine that is 149 cc or smaller is not considered a motorcycle, but a motor-driven cycle. A moped or another type of vehicle with an electric motor that does not exceed 1,000 watts, and has pedals, is considered a motorized bicycle.

Lapse in Insurance Coverage

If you choose to purchase an insurance policy rather than go with one of the other options, the insurance company electronically notifies the CA DMV of your coverage. If you let the coverage lapse, the insurance company will electronically notify the CA DMV of the lapse. Once notified, the CA DMV will suspend your two-wheeled vehicle registration because you have not maintained financial responsibility.

Be sure you are covered in one way or another, as California’s fines for not carrying some insurance or having proof of financial liability could cost $1,000 or more as of early 2012. The police may also impound your two-wheeled vehicle, and, if you cause an accident, authorities will hold you financially responsible for any property damage or injury to another person. You could also legally be sued by the party you injure or cause damage too.