California Car Insurance
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Car Insurance Requirements in the State of California
In California, to own and operate an automobile, drivers are required to follow the minimum financial responsibility laws and carry the minimum amounts of liability insurance.
The Minimum Auto Insurance Requirements
* $30,000 for each individual in the accident
* $15,000 for the death or injury of an individual
* $5,000 for an accident
The Four Ways to Achieve Financial Responsibility in California
1. A surety bond in the amount of $35,000 that was obtained from an insurance company that is licensed to do business in the state of California.
2. $35,000 cash deposit with the DMV
3. Insurance coverage through an automobile or motor vehicle liability insurance policy
4. A certificate from the DMV indicating self-insurance (the certificate is generally given to owners who have fleets in excess of 25 vehicles)
Minimum Liability Coverage in California
* $15,000 for the injury or death of an individual in an accident
* $5,000 for property damage in an accident
* $30,000 for each person in an accident
* Underinsured & Uninsured Motorists
Underinsured and Uninsured Motorist Coverage is not mandatory under the California law. California recommends that individuals need to purchase underinsured and uninsured coverage. Most of California’s auto insurance agents recommend that a driver purchase no less than $50,000 of underinsured and uninsured auto insurance.
If an Individual has No Previous Insurance or Has Let his Insurance Lapse
In California, the penalties are harsh for those allowing their insurance coverage to lapse. The California DMV has begun suspending a cars registration when insurance has been cancelled or lapses. The California legislatures decided to pass this bill in hopes of stopping the motorists who were buying insurance for several months and then cancelled their policy.
In California, failure to show evidence of insurance coverage can result in a suspended license, fines and impounding of the vehicle.
The Tort System
California uses the tort system for automobile insurance. This means that the state is required to name the individual that is responsible for causing the accident. The individual at fault is required to compensate for all the charges that were incurred in the accident, from car repairs to medical bills.
The first thing to remember with auto insurance is that it is a two way street – pun intended. It is comforting to know that most people who have their cars aimed at me have required car insurance as it should be comforting to them that I have insurance. Accidents happen! An accident as defined by this excerpt from BrainyQuote.com is; “. . .an undesigned, sudden, and unexpected event; a casualty; a mishap; as, to die by an accident.” That’s what it says, “to die by accident.”
In California, auto liability insurance is mandatory. If you drive without proof of insurance, you can face stiff penalties including impounding of your vehicle and revocation of your license.
Here it is, straight from Sacramento, right out of the book: These are the bare minimums but they are all you are required to have (California Insurance Code #11580.1b).
*For bodily Injury and death Liability of one person it is $15,000.
*For bodily injury and death liability of two people it is $30,000.
*For property damage, the amount is $5,000.
Remember, just having comprehensive or collision insurance does not necessarily meet vehicle financial responsibility requirements. Check your policy carefully as you must specifically have liability insurance.
It’s really basic; you need to get the basics. If money is an issue, shop hard and deep for the cheapest insurance that covers the bare minimum requirements for California car insurance. Also, if you simply cannot afford liability insurance, you can contact the State at www.aipso.com/lc/ or call 1-800-502-8881 to see if you qualify for the California Low Cost Automobile Insurance Program. It’s either that or public transportation. The grief of taking a chance just isn’t worth it.
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