subject: A Discussion Of California Auto Insurance Laws [print this page] Is is very important for those living in the state of CA to understand California auto insurance laws. As every driver needs to have an auto insurance policy, this information is critical and follows below.
To begin, California is a no-fault auto insurance state. This means that a driver is said to be at fault when an accident occurs, and his or her auto insurance company must pay for the injuries or damage that was caused. The state has a minimum insurance quota on this liability insurance that needs to be verified every year that the driver renews his or her vehicle registration. California also has a special program that offers cheaper insurance to low-income drivers.
Regarding the size of the vehicle insurance policy that is required in CA, car owners need to have liability insurance for death or injury to other people and property damage. They must have at least fifteen thousand dollars worth of coverage for injuries to one person, thirty thousand dollars worth for more than one individual, and five thousand dollars for property damage. In addition to this, CA drivers can buy uninsured motorist protection. Such a package will cover damage or injury to themselves, their own property, or their passengers. This protection is especially good to have if another driver causes the accident and has insufficient coverage. Furthermore, CA state law mentions that companies selling vehicle insurance need to give customers the lowest cost estimate of car insurance that meets the minimum requirements that the buyer seeks out.
Regarding the different types of auto insurance available in CA, there are obviously vehicle insurance policies available. However, a resident in California can also meet the financial responsibility requirements that drivers need to follow by depositing thirty five thousand dollars with the Department of Motor Vehicles, or DMV, in CA. They can also obtain a surety bond in the amount of thirty five thousand dollars from a company that is licensed to do business in the state of California. Another option is for a driver to self insure himself or herself. A certificate needs to be obtained from the CA DMV in order to do this.
At this time, it is also important to make note of California's Low Cost Automobile program, or CLCA. This program offers cheaper insurance for low-income CA residents. The intent is to discourage uninsured driving. A driver must be at least nineteen years old to qualify, and he or she must not have been at fault for more than a single accident in the previous three or have obtained greater than one point on his or her license. Furthermore, he or she must not have any criminal convictions that involve an automobile and must have a car that is worth less than twenty thousand dollars.
In conclusion, it is important for drivers in the state of CA to be aware of the state's vehicle insurance laws. CA is a no fault car insurance state, and there are minimum levels of coverage that a person must buy. Different types of insurance are available in CA, and lower income residents have the opportunity to obtain cheaper insurance through California's Low Cost Automobile program, or CLCA.
by: Levi Wright
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