California Law stands in the middle of the scale between strict rules and relaxed regulations related to auto insurance in the United States.
It has two main requirements, bodily injury of a minimum of 15,000 dollars for one person, 30,000 dollars for two or more people, and property damage coverage for at least 5,000 dollars. Of course, while those are the minimum requirements, some people prefer to get greater coverage, for example, in case of auto theft. Others prefer to increase the amount covered beyond what is required by law. For example, owners or companies who have big trucks, which are heavier and more likely to inflict greater damage than a car.
The law provides four different ways for becoming legally financially responsible.
- Coverage by an insurance company. The easiest choice of them all. It isn’t more difficult than buying any other type of insurance in any part of the United States. It’s also the one that allows you to customize the coverage according to your needs. In specific, if you want coverage against thefts, this is pretty much the only way to go. It’s also the best choice by far for people who live in California and drive everyway. The only exception is if your car is so old or in a condition that it’s in such a bad condition that makes it unsellable. In that case, just get the cheapest auto car insurance or go for option 4 while you buy yourself a better car.
- A deposit of 35,000 dollars made to the Department of Motor Vehicles of California. As you can imagine, this is a very impractical option and it’s very hard to think of a situation where someone would prefer this over just buying a much cheaper insurance policy. People with low incomes certainly won’t have 35,000 dollars around and use them on a type of car insurance. And people who do have 35,000 dollars to spend can afford insurance with the whole bells and whistles. Really, at this price, you might as well get your own car.
- A certificate of self-insurance. The Department of Motor Vehicles will issue one for you if you have 25 or more vehicles, with your own vehicles being a guarantee of payment.
- A surety bond. The bond has to have a value of $35,000 and is obtained from an insurance company, so you might as well get a regular insurance policy instead.