Section 5604.5 Of Article 1. Procedure To Transfer From California Vehicle Code >> Division 3. >> Chapter 2. >> Article 1.
5604.5
. (a) Every dealer who, upon transferring by sale, lease, or
otherwise, any new or used vehicle of a type subject to registration,
requires the transferee to insure the motor vehicle shall, if the
required insurance policy is sold by that dealer at the time of the
transfer and the policy does not insure the transferee against
damages resulting from ownership or operation of the vehicle arising
by reason of personal injury or death of any person, or from damage
to property, notify the transferee of that fact in writing on a
document other than the insurance policy. The document shall be
signed by the transferee and an exact copy shall be furnished to the
transferee by the dealer at the time of signature.
(b) The document required under subdivision (a) shall contain a
notice in English and Spanish in at least 10-point type that reads as
follows:
"INSURANCE WARNING
The motor vehicle physical damage insurance policy you are buying
does not allow you to legally drive on the streets of California.
Generally, in order to legally drive on the streets of California,
you must either purchase a type of insurance called "liability
insurance" or deposit a bond with the Department of Motor Vehicles.
If you drive this or any other motor vehicle without liability
insurance or a bond, a police officer may request evidence of
liability insurance or a bond at the time of a traffic stop. If you
do not have evidence of liability insurance or a bond during a
traffic stop, the fines can be from several hundreds of dollars to an
amount that exceeds $1,000. If you get into an accident and do not
have liability insurance or a bond, you will lose your driver's
license for one year. If you cause the accident and do not have
liability insurance or a bond, you may have to pay the injured person
yourself and these costs may be substantial.
Liability insurance as well as the insurance needed to obtain a
loan for your motor vehicle may be purchased through a licensed
insurance agent or broker. The price for both types of insurance may
be more or less than the price for the insurance you are being
offered by the dealer. The State of California advises you to shop
for insurance because prices may vary substantially.
I have read this notice and understand that I am about to buy a
type of insurance that is available elsewhere and that does not allow
me to drive the motor vehicle legally on the streets of California.
I also understand that if I drive on the streets of California
without liability insurance or a bond, then I may be subject to
severe financial penalties, including fines and personal payment for
any damage to others that I may cause while driving.