9 You must buy liability coverage. Driving without insurance is illegal. Also, you must have liability coverage to register your car. Your insurance company tells the California Department of Motor Vehicles (DMV) if you buy auto insurance or if you stop paying your premium. What happens if I do not have liability coverage? If you do not show proof of insurance when asked, you will get a ticket. If you do not have any insurance, your license may be suspended and your vehicle could be impounded. How do I prove that I have liability coverage? Your insurance company will provide you with proof of insurance. It lists the insured vehicles and the name of insured. It also shows the policy number and the dates the policy starts and ends. Keep this card in your car. What if I cause an accident that costs more than my liability limit? You will be responsible for any damage you cause beyond the limits purchased. Should I get higher limits than the law requires? You may want higher liability limits than the law requires. In general, the more assets you have, the more you could lose in a lawsuit. You should discuss your situation with your agent, broker, insurance company, or financial advisor.