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Vehicle Licensing and Registration

When you purchase a new or used vehicle from a licensed California dealer, the dealer is required to collect use tax and fees to register and title the vehicle. Additionally, the dealer is to submit essential documents and corresponding fees to the DMV while granting you a temporary operating authority to drive a purchased vehicle. Generally, after six to eight weeks after the purchase date you will receive a registration card as well as the license plates, stickers, and a Certificate of Title, if applicable.

If you obtained or purchased a vehicle from a private party, you are required to change the ownership with the DMV within 10 days. In order to do so, you must submit the following information to DMV:

  • A properly signed and completed Certificate of Title
  • Smog Certificate (if required)
  • Use Tax Payment (if required)
  • Odometer Mileage Disclosure Statement
  • Appropriate DMV fees
  • When you sell or transfer the vehicle, you must report it to DMV within 5 days. In order to do so, you are required to complete the Notice of Transfer and Release of Liability form.

    Vehicles registered in another state or foreign country must be registered in California within 20 days after an owner of the vehicle becomes a resident or gets a job (non-resident military personnel and their spouses are exempt from this requirement).

    In order to register an out-of-state vehicle, the following paperwork needs to be submitted:

  • A properly completed and signed Application for Title or Registration
  • Verification of the vehicle, completed by DMV staff, law enforcement agent, or an auto club employee
  • Smog certification (for 1976 or newer motor vehicles only)
  • Weight Certificate (for commercial vehicles)
  • Use Tax Payment (if required)
  • An Odometer Mileage Disclosure Statement (if applicable)
  • Appropriate DMV fees
  • Financial Responsibility and Liability Insurance

    Liability Minimums

    Per California State law, every vehicle registered in California must have liability insurance. Minimum liability insurance requirements for private passenger vehicles are:

  • $15,000 for injury/death to one person.
  • $30,000 for injury/death to more than one person.
  • $5,000 for damage to property.
  • Note: You’ll want to be sure to purchase enough liability coverage beyond the state minimum amounts in order to ensure your personal assets are well-protected.

    Also, keep in mind, comprehensive and collision coverages don’t constitute proof of financial responsibility, though for many drivers those coverages are essential as well.

    Vehicle Registration Financial Responsibility Requirements

    Financial Responsibility must be obtained and maintained on any vehicle operated or parked on California roadways and must be provided as specified below:

  • When requested by law enforcement
  • Upon renewal of your vehicle’s registration ( if requested)
  • In the event the vehicle is involved in a traffic collision
  • Department of Motor Vehicles shall suspend, cancel, or revoke the registration of a vehicle when the following circumstances occur:

  • Evidence of financial responsibility has not been submitted to the department within 30 days of the issuance of a registration certificate for the original registration or transfer of registration of a vehicle. (VC 4000.38 a(3)).
  • Within 45 days of the cancellation of a policy for a currently registered vehicle (VC 4000.38 b (1)).
  • The registration of the vehicle was obtained by providing false evidence of financial responsibility.


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