California Auto Insurance Laws
What are California Car Insurance Laws?
For many people buying car insurance can be a complicated process. It seems everyone has a different perspective on what you should and should not have covered. One thing to keep in mind is that you do have legal minimum requirements. Before shopping for car insurance it is important to know what these requirements are. California auto insurance laws are pretty straight forward. Let’s take a look at what they are.
The first thing all drivers in California should be aware of is the Compulsory Financial Responsibility law. This law simply states that all drivers and owners of vehicles in the state of California are financially responsible for their actions. Therefore, if you cause an accident the financial responsibly is on your shoulders. Because of this auto insurance laws in California require certain liabilities. The minimum liability coverage for vehicles in California is called the 15/30/5. For bodily injury it is required that you are covered for $15,000 for injury or death in any one incident for one individual. Bodily Injury of $30,000 is also required for each individual incident for all individuals affected. For property damage you are required to carry $5,000 to cover for other vehicles or property involved in a single incident. Keep in mind that this is what is minimally required. Now let’s take a look at the different ways you can obtain the minimum legal coverage.
There are four specific ways that you can reach the above minimum requirements if you own a vehicle in California. The first is the obvious, to simply purchase insurance coverage for your auto from an insurance agent. Although this is the option that most people chose, you do have some other alternatives. You can also give $35,000 in deposit to the DMV to cover any incident that might occur. If you are a business and carry a fleet of 25 or more cars you can show a certificate of self-insurance issued by your local DMV. The final way to obtain coverage is to purchase a surety bond for $35,000 from any insurance agent practicing in California.
California car insurance laws do not require you to have any other coverage than what is listed above. Therefore you do not need to purchase comprehensive coverage, uninsured motorist coverage, medical coverage or collision insurance. However it is important to note that the minimum requirements do not protect you for anything above and beyond. It is essential that you really analyze the other types of coverage that are out there. Only then will you be able to determine what other options you may want to add on to your auto insurance plan. If you are in an accident and only have the minimum coverage needed by California law, you just might be risking financial hardship. If you were in an accident, you would be financially responsible for anything your insurance policy would not cover. This is why most individuals chose to purchase a more comprehensive auto insurance policy.
You should now be knowledgeable on the California auto insurance laws. When deciding on insurance you will want to make sure that you have at the very least the minimum requirements. Of course, you should also consider other options to further protect yourself. You never know when you might, unfortunately find yourself in an auto accident.
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August 6th, 2010 at 4:26 pm
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