California has a lot of strange laws. So do other states.
There was a time when almost everybody died at home. This was before emergency rooms, and before auto accidents becoming the number one cause of unexpected deaths in the U.S. (vehicle safety improvements have since passed that honor in this country back to influenza).
As Jeff says, it's a car. Different rules. In the U.K., any motor vehicle in (or on) which a person has died gets a special tag which prevents it being sold to be used again on the road. I wonder how many states have a law like that.
When my dad was doing damage appraisal on automobiles, his company had special rules for handling those involving deaths in the collision or incident. Various state laws had different effects on the salvage value of the remaining hulk, e.g. if no parts can be resold, salvage value was zero, as in the U.K.
I has been four years since my wife died in my arms in the family room of the home where I still live, and this is not something I intend to discuss with prospective buyers.