What are California auto insurance requirements?

Many people today are struggling to pay their bills, and if you live in CA you are most likely paying a small fortune for your auto insurance.  At one time or another you may have thought, “hmmm do I really need to carry insurance?”.  The answer is: absolutely!  In fact it is required by law and all motorists must carry California auto insurance minimums.  If you are caught without the minimum insurance coverage you will most certainly have much more than a headache on your hands.  Uninsured motorists face some severe consequences.

When you go to register or renew your vehicle registration you must show proof of having California auto insurance minimum requirements.  The minimum requirement coverage everyone must carry is $15,000 in liability for one person in a single incident and $30,000 for multiple people in a single incident.  You are also required to carry $5,000 in property damage for a single incident.  If you cannot show this proof of coverage you will be unable to obtain vehicle registration.

At all times you must carry proof of your auto insurance in California.  It is your responsibility to have documentation in your vehicle at all times.  If you are asked to present such documentation and are unable to,  you could be facing some severe consequences.

You can be fined up to $500.00 plus penalties.  You also will risk having your vehicle impounded.  If this should happen, financial responsibility lies on you to pay for all costs that occurred to have your car impounded.  This includes towing and vehicle storage.   You are also at risk of having your license suspended.

If you are in an accident and do not have the minimum California auto insurance coverage it could be financially detrimental.  Under the Compulsory Financial Responsibility law you are financially responsible for paying damages and for bodily injuries out of your own pocket.

If you are having difficulty paying for your car insurance there are some options out there for you.  First look at your coverage and see if there is anything you can eliminate from your policy.  Many times we double pay for certain coverage like road side assistance.  If you carry AAA you do not need this in your insurance coverage.

Can you raise your deductible?  Many people have very low deductibles and you can generally get a much lower rate when you raise yours.

Be sure to shop around.  If you have not done this recently it really may be beneficial.  Most often you will find a good variance in rates that insurance companies will offer you.   Make sure you get quotes from reputable California auto insurance agents and then go with the cheapest rate.

Finally, if you are really stuck and just can’t afford any premium you may want to look into the California Low Cost Automobile Insurance. Program otherwise known as the CLCA.  It is a great program offered in the state of California that allows low income individuals and families to obtain cheap California auto insurance minimum coverage.

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