California Auto Insurance Regulations and Requirements
As per the law of California, every driver needs to carry auto liability insurance or a proof which confirms financial responsibility on any car that is parked or operated on the state roadways. With the help of liability insurance, an insured driver can be protected against any kind of property damage and injury that may be caused by accident. However, this liability insurance should not be confused with collision or comprehensive Cheap car insurance in California in which the damages to an insured vehicle are covered if there is a loss, regardless of the fault.
Minimum Car Insurance Requirements in California
The California law has set the minimum requirements for auto liability insurance which is mandatory for every driver. They should have a minimum of insurance coverage of-
$15,000 for personal injury or death of a person
$30,000 for personal injury or death of more than one person
$5,000 for property damage
While the above mentioned is the minimum coverage, drivers can look for other car insurance for additional coverage or can also pick other kinds of coverage, like comprehensive, collision, medical payments, etc.
Financial Responsibility Requirement
To ensure that they can comply with the above mentioned minimum coverage requirements, a lot of car owners choose lowest car insurance in California whose liability coverage is more or equal to these minimum requirements. But apart from the methods mentioned above, there are some other ways to meet the financial responsibility requirements of California.
Rather than purchasing Cheap car insurance, they can-
Deposit an amount of $35,000 with the DMV in California
File for a self-assurance certificate with the DMV in California
Get a surety bond worth $35,000 from an issuer who is licensed in California for doing business
Non-Compliance on the Minimum Auto Insurance Requirements
If a car owner doesn’t have a proof of the financial responsibility that covers the minimum requirements, their vehicle registration can be suspended. This can be the consequence if-
Insurer fails to submit the policy information to DMV in California within a period of 30 days after the registration card is issued
Cancellation of an insurance policy and informing about the same to the DMV within a period of 45 days from the date of cancellation
Fraudulently obtaining the registration
Once the registration is suspended, and the car owner still drives the car, then the car owner can be fined, the car can be impounded, and it will be the driver who will be responsible for all the damages that occur, if at all, there is a collision.
Thus, if you are living in California make sure, your car insurance at least adheres to the minimum requirements as set by the state. However, for your own benefit, it may be advisable to not jut depend on the minimum criteria and go for a comprehensive insurance.