California Insurance News

Laws and Regulation Governing California Auto Insurance

Any California auto insurance will provide for the safety and financial security of car drivers and owners. However, no two policies work the same way or provide the similar benefits, especially when they are from different areas of the country. Since insurance laws vary between states, it is important to understand the current state's regulations. The laws could vary on the mandatory coverage, liability California car insurance minimums and also on the requirements of documentation to be carried in the vehicle. The obligations under the law should be understood if there is a plan to move to another state and more so if a new policy is needed.

 

The basic requirement is all registered vehicles must be insured. If you own a vehicle and want to operate it on a public road, the law says it has to be registered, and it must be insured. Furthermore, proof that the vehicle is insured should be carried with the vehicle at all times. If asked to produce evidence of liability auto insurance in California, failure to comply could result into a minimum of $500 fine, court costs and possible suspension of your car.

 

The minimum liability insurance required for the state of California is $15,000 for injury and death of one person; $30,000 for the injury and death of more than one person, and a minimum of $5,000 property damage for one accident.

 

The California Vehicle Financial Responsibility Law makes it obligatory for the insurance companies to report private vehicle policies to the state. Therefore, if there is a lapse in the policy, the state comes to know of it.

 

Immediately, after registration, there is a space of 30 days within which to provide insurance information. When changing or canceling any insurance, the space given is 45 days, to obtain the replacement insurance. Failure to do so can result in the termination or suspension of your registration, or vehicle impounding, or a citation of a minimum amount of $1000, or all. Additionally, if, within the period when your insurance has lapsed, your car meets with an accident, then you will be liable for all the damages.

 

However, irrespective of the jurisdiction, the regulations outline only the minimum coverage. To drive comfortably on the roads, it is preferable to exceed this least coverage. Insurance experts say the amount should be closer to $1 million. So, anything moving nearer to this figure should be acceptable.

 

However, it is the liability coverage that is important for complete protection. The liability coverage is the maximum amount that your insurance company will pay. If, in an accident, you have a total responsibility of $45,000, but are covered for only $30,000, then you are liable for the remaining $15,000.

 

Combining several policies under the same car insurance in California provider can save you money. Compare the policy quotes from various companies to decide on the most suitable one for you.

 

In a nutshell, in the state of California, mandatory Auto Insurance minimums are:

 

Liability: $15 K/$30 K/$5 K for Individual Bodily Injury/Total Bodily Injury per accident/Property Damage.

 

Proof of Insurance: Proof is required when obtaining registration, if involved in an accident, if stopped by the authorities when driving.

 

Penalty: Inability to produce mandatory insurance, a fine of up to $200 for the first offense.