The Financial Responsibility Law asks every driver one question: if you hurt someone or damage their property, can you pay? An auto liability policy is the usual answer, but not the only one.

Minimum limits: for a policy issued or renewed on or after January 1, 2025, Vehicle Code §16056 sets the floor at $30,000 per person and $60,000 per accident for bodily injury and $15,000 for property damage (30/60/15). The old 15/30/5 figures no longer apply even to a renewal, because the statute says issued or renewed. A further increase to 50/100/25 applies to policies issued or renewed on or after January 1, 2035 (§16056(d)). Insurance Code §11580.1(b)(1) requires a California auto liability policy to carry limits no lower than these.

Proof: Vehicle Code §16020 accepts, among others, an insurer's form, a DMV self-insurance certificate or deposit letter, an insurance binder or covering note, and proof of government ownership. A driver license is not on the list; it shows the right to drive, not the ability to pay. Under §16021, financial responsibility is also established when the owner or driver is the United States, the state, a municipality or subdivision, or their lawful agent; self-insurance and a deposit are other routes. Under §16054(a)(2), a driver who does not own the car can rely on his own policy that covers him in a vehicle he does not own, and §16054(b) requires that policy to comply with §16056.

At the scene: §16025 requires each driver, unless incapable, to exchange identifying information and evidence of financial responsibility, including the insurer's name and address and the policy number. Failing to comply is an infraction punishable by a fine of up to $250. The duty belongs to the drivers, not to their insurers.

Outline note: the CDI outline lists §11580.1(b)(1) and Vehicle Code §16054 as notice requirements. Under current law, §11580.1(b)(1) is the limits requirement and §16054 deals with filing evidence of financial responsibility with the DMV.