Automobile Insurance

10 Are there other ways to show financial responsibility besides buying insurance? There are three ways to accomplish financial responsibility: 1. Obtain automobile liability insurance from an insurance company authorized to do business in California. 2. Make a cash deposit of $35,000 with the Department of Motor Vehicles (DMV). 3. Obtain a surety bond for $35,000 from an insurance company licensed to do business in California. Evidence of financial responsibility must be carried at all times in the vehicle. Most Californians maintain financial responsibility by purchasing automobile liability insurance from an insurance company authorized to do business in California. Other Coverage Options These are other coverage options commonly available for purchase. Uninsured Motorist Coverage (UM) /Underinsured Motorist Coverage (UIM) This covers you if you are in an accident with a driver who does not have any liability insurance, or is underinsured. The insurance company must offer you this coverage. If you choose not to buy it, you must sign a form, called a waiver. The form says you were offered the coverage and turned it down. • Uninsured motorist bodily injury (UMBI): This pays for injuries to you and any person in your car when there is an accident with an uninsured driver who is at fault. The limits can be the same or lower than your liability coverage limits.