Once again this is not new and not just a California issue. Almost all public Liability insurance is to protect the other person not yourself. You don’t have to have homeowners insurance but if you are making payments you have to insure your house to protect the lender. The other statement about of people driving without insurance is also true. There is a third choice people have as well. Off shore or out of state insurance that may or may not pay off if you have an accident. But it meets the registration requirement. If you are willing to pay off your vehicle and carry a monster deductable insurance can be less than $500.00 a year.