Auto Insurance Requirements and the California DMV

Dear Miss Mota Mouth,

I went to the movies last night and when I came out, my car was gone. I called the police and they said that it had been impounded because the registration was suspended because my insurance has lapsed. All of my insurance is up to date! When I moved a few months ago I paid my insurance in advance while I was in the agency office! What do I need when I go to the California DMV to prove that I have insurance?

Mary in El Segundo

Dear Mary,

Sounds like you got caught in a misunderstanding between the California DMV and the insurance company. According to the state financial responsibility laws in California that require insurance for every motor vehicle, the DMV now is updated on a monthly basis by all of the insurance companies to confirm that you are current with your policy. Unfortunately if you moved then your records at the DMV probably do not match the records at the insurance company and since there was no match, the DMV regards your vehicle as being uninsured. Believe it or not, they are not matching just your name and VIN to the policy and if any notifications were sent to your old address, you wouldn’t know that you were getting ready to be suspended. No fun.

What you will have to do is go to the DMV, show you proof of insurance, driver’s license and a proof of residency (a bill will do). They will have you do a change of address on both the registration and your driver’s license to your current address. And here is the really unfortunate part: you will still have to pay the towing fees to the towing company and any daily storage fees that they charge. You will probably be able to appeal the fees after you pay them or may even be able to get your trusty insurance agent to help you with an appeal so that you can get the fees back but they will make you pay first. It isn’t innocent until proven guilty in that world.

From now on, always try to keep any new addresses up to date when you move. Make a list as you notify them and keep that list around for the next time you change your address so that you don’t forget any one.

Good luck!

M

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