Madlyn Fallis: Insurance is proof of financial responsibility. It allows the average person to be able to pay tens or hundreds of thousands of dollars for damages or injuries by paying a relatively small amount. If you're wealthy, you can post a bond to cover legal liabilities.
Tijuana Tatsak: Its called a bond, many dealers and such will be bonded for x amount of dollars, meaning they are there own insurance company, they put up the money and it is held by a bank or legal corporation as insurance, so if Bill were to put up a 10m bond thats how much hes covered for, he wont have to pay the insurance company there profit and he earns intrest on his money, pretty smart if you have the money.
Joey Mekeel: Yes... They do. Having a lot of money isn't necessarily financial responsibility.
Willa Holte: You are correct. In California you are required to have proof of "financial responsibility". For most car insurance meets that requirement, but as you asked ther! e are other ways to accomplish this. A $35,000 bond filed with the DMV would be one other way. A certificate of self insurance (usually big companies do this) is another. Contrary to what many believe California does NOT mandate that you MUST have car insurance.
Fannie Collingwood: Every driver must be insured, yes.
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