California Auto Insurance
Requirements of Motorists under CA State Law
Everyone has an opinion about insurance. Some people
believe it is a conspiracy to con hardworking people out
of money. You can not imagine how much you need insurance
until you something happens that you were not prepared
for.
Weather its a car accident, a flu, a fire,or a theft
these things happen all the time. You never know if or
when something might happen to you. Don't be caught off
guard by life's unpredictable events.
There are certain "requirements" that are applicable
to each state and varies accordingly. We have attempted
to compile all of the relevant information in to this
single resource to help visitors know what is expected
of them in regards to insurance.
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California
Car Insurance Requirements
Coverage Minimum - *15/30/5
Coverage Explanation - Car insurance
coverage in California must provide a minimum of $15,000
for injury liability for one person in an accident, $30,000
for all injuries in an accident, and $5,000 for property
damage in an accident.
*Under California auto insurance law, Californians are
now able to purchase low cost, reduced limit, automobile
liability coverage. The California Low Cost Automobile
Insurance Program (CLCAIP) is a pilot program which will
satisfy the financial responsibility laws of the State
of California. Under California auto insurance law, these
policies are available to qualified persons residing in
the counties of Los Angeles and San Francisco.
Briefly, the qualifications are based primarily upon:
- Household Income
- Driving Record (accidents and violations)
- Vehicle Purchased Value
In accordance with California auto insurance law, the
California Automobile Assigned Risk Plan administers the
program. They can be reached at 1-800-622-0954 for additional
information.
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Important California
Auto Insurance Laws!
1. All drivers in california must be able to demonstrate
ability to be *financially responsible for damages or
injury to others resulting from the ownership or operation
of a motor vehicle.
Important to Note:
*There are four ways to accomplish financial responsibility
under California auto insurance law:
- Coverage by a motor vehicle or automobile liability
insurance policy;
- A cash deposit of $35,000 with the Department of Motor
Vehicles (DMV);
- A certificate of self-insurance issued by DMV to owners
of fleets of more than 25 vehicles; or
- A surety bond for $35,000 obtained from an insurance
company licensed to do business in California.
Under California auto insurance law, all California
drivers and owners must have at least the statutory limits
of minimum auto liability insurance or an approved alternative
way to pay for injury or property damage they may cause.
Penalties are very severe for non-compliance with this
section of the vehicle code.
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