Company Announcements

New laws expand roadside safety rules, strengthen consumer protections and modernize DMV processes

LOS ANGELES , March 12, 2026 /PRNewswire/ -- Several new California driving laws took effect January 1, 2026, aimed at improving roadway safety, strengthening consumer protections and modernizing Department of Motor Vehicles processes. According to Mercury Insurance, the new legislation reflects how driving is evolving in California — from increased roadside risks to emerging vehicle technologies — and underscores the importance of drivers staying informed about changes that could affect daily driving habits.

"These new laws reflect how quickly driving conditions, vehicle technology and enforcement priorities are evolving," said Justin Yoshizawa, Director of Product Management for Mercury Insurance. "Understanding the rules of the road isn't just about avoiding tickets — it's about protecting drivers, passengers and everyone who shares California's roads."

Key Road Safety Enhancements

Several of the new statutes are designed to reduce traffic risks and better protect drivers, pedestrians and roadside workers.

• Ignition Interlock Devices Expansion (AB 366): Expands requirements for ignition interlock devices for drivers convicted of DUI offenses.
• Vehicular Manslaughter Penalty Increases (AB 1087): Increases penalties for intoxication-related vehicular manslaughter to reflect the severity of harm.
• Expanded "Slow Down, Move Over" Rule (AB 390): Requires drivers to slow down or change lanes for a broader range of stopped vehicles displaying hazard lights, not just emergency vehicles.
• License Plate Obstruction Penalties (AB 1085): Tougher restrictions and fines for license plate obstructions, including tinted covers or frames that hinder readability.
• Autonomous Vehicle Marker Lamps (SB 480): Requires external marker lamps to indicate when a vehicle is operating in autonomous mode.
• Off-Highway Electric Motorcycle Rules (SB 586): Updates operational regulations for electric off-highway motorcycles to clarify their legal use.

Strengthened Consumer Protections

California lawmakers also passed measures aimed at protecting drivers and vehicle buyers.

• California Combating Auto Retail Scams (CARS) Act (SB 766): Limits junk fees and deceptive pricing in car sales and leases, requiring clearer up-front disclosure of total costs.
• DMV Website Name Restrictions (AB 1272): Restricts the use of "DMV" in third-party website names unless officially affiliated, helping consumers avoid misleading services.

DMV Modernization and Equity Measures

Additional laws focus on improving access and fairness within DMV processes.

• Duplicate Driver's License After Address Change (SB 506): Allows drivers to request a duplicate license to reflect a new address.
• Parking Ticket Relief & Payment Plans (AB 1299): Expands options for parking ticket payment plans and reduced penalties for eligible drivers.

What Drivers Should Do

Mercury Insurance encourages California drivers to familiarize themselves with the new laws and take steps to ensure compliance, including reviewing vehicle equipment, updating DMV information and understanding how changing regulations may affect every day driving.

For more information about driver safety, visit the Mercury Blog.

About Mercury Insurance

Mercury Insurance (NYSE: MCY) is a multiple-line insurance carrier predominantly offering personal auto, homeowners, renters and commercial insurance through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury writes other lines of insurance in various states, including commercial, business owners and business auto, landlord, home-sharing, ride-hailing and mechanical protection insurance.

Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through more than 4,200 employees and a network of more than 6,340 independent agents in 11 states. Mercury has earned an "A" rating from A.M. Best, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com. For more information visit www.MercuryInsurance.com or follow the company on X, Instagram or Facebook.

Media interested in receiving updates from Mercury can learn more at the Mercury Newsroom . 

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SOURCE Mercury Insurance