Does California Offer Alternatives to Car Insurance?
You’ve heard it over and over again. For as long as you’ve lived in California, you’ve been exposed to the countless reminders and warnings about auto insurance. The fact that the law requires motorists to obtain this type of policy has been driven (no pun intended) into your head. So, to recap: you cannot drive without auto insurance coverage in California.
Except… that’s not completely true.
You Can Drive Without Auto Insurance in California
If you want to get technical about it, there are ways that you can legally drive in the Golden State without having to purchase an auto insurance policy. In fact, California is one of several states that has a “loophole” of sorts when it comes to mandatory auto insurance.
Why is this? Think about it: as heavily regulated as insurance companies are in California, they’re still private companies. And in most instances, you cannot force a private company to sell one of its products to a consumer. Plus, there are cases where an insurer might deem drivers too risky for auto insurance policies (for example, if they have dozens of moving violations, multiple accidents, and/or several DUIs on their record). That’s why these alternatives to car insurance were established — as sort of a “work-around” for people who cannot qualify for auto insurance in the marketplace.