About two years ago I camped for free on the beach in Pacifica, about 15 mi south of San Francisco with no hassles at all. There are usually campfires burning until late on the weekends, and the atmosphere is very friendly. If you are a small group, you might be ok. There are NO campsites in the area and no affordable hotels. I think Half moon bay has camping, about 12 miles further south. Hwy 1 is one of the most impressive routes in the country, especially in the early spring when everything is green.