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Abiding the California Car Insurance Laws to Drive Legally

Since 2006, the government of California issued some strict and rigid car insurance and vehicular laws. This was done to ensure that drivers do not bend the rules or drive in a reckless manner jeopardizing the lives of themselves as well as others. To bring in some sense of responsibility while driving on the roads, car insurance in California has been made compulsory for all car owners. Thus drivers must have some minimum amount of financial liability when involved in an accident.

Furthermore, agencies providing car insurance in the state of California have to provide information about privately used vehicles, electronically to the DMV (Department of Motor Vehicles) on a regular basis. If this is not done or if false information is provided about your car, then your vehicle registration would be suspended.

Rules of the government state that you must have some proof of financial liability on you while driving at all times. In other words, you need to have a proof that your car is insured. During any point in your travel you may be asked for these details by the law enforcement.

The minimum liability insurance requirements for private passenger vehicles are as follows:

• $15,000 for injury or death to one individual.

• $30,000 for injury or death to multiple individuals.

• $5,000 for property damage.

So, this is the basic coverage that a California resident should get.

California state law allows drivers to obtain financial liability in the following 4 ways:

• Obtaining coverage from California car insurance agencies.

• Providing cash deposit of $35,000 with the DMV.

• Obtaining from DMV, a certificate of self-insurance of a fleet of more than 25 vehicles.

• Obtaining a surety bond for $35,000 from a licensed insurance company doing business in California.

Drivers driving rented cars need to have insurance and carry proof of that too. They must have some extent of coverage from their regular car insurance provider in California or get some insurance from the car rental company before driving the rented car. However, it is easier and cheaper to get car insurance from the drivers’ regular car insurance provider than getting car insurance from the car rental facility.

California has a high rate of accident among teenagers. It is no surprise that around 400 teenagers are fatally injured every year during car accidents in California alone. Hence teen driving laws are different and stringent in California and breaking them has serious consequences. The probability of an accident of a teen within the first year of a getting his/her license is very high. Insurance providers advice parents to maintain higher coverage of insurance rather than the minimum. If you do not want to provide a separate insurance policy for your teenage ward and want him/her to be added to your existing policy, then your annual rate would increase anywhere from $1,200 to $4,900 a year. The average increase, however, is $2,171 a year.

Whether you purchase a teen car insurance policy or add their insurance coverage to your existing policy, it will be very expensive. There are certain ways however, by which you can reduce your costs and apply for discounts. Agencies providing California car insurance give a discount ranging from 10%-15% or more for:

• Maintaining at least a B average.

• Teenagers completing successfully the state approved safe driver course.

The insurance premium for your teenager can be reduced if you do not purchase sports or luxury cars for them and if you opt for a higher deductible or if you combine your insurance policies, i.e. life, home, health, renter’s.

There are several ways to avoid extra expenditure on car insurance policies in California. First would be to abide by the traffic laws. Ensure that you maintain your car insurance with a licensed provider who electronically reports to the DMV. There are many such car insurance agencies.

You can easily get quotes from several California car insurance companies online. These rates are dependent on your age, sex, marital status, car model, etc. You can then compare these quotes of these Californian insurance agencies and reach a decision encompassing your needs and priorities.

You just have to enter your local zip code and have to mention whether you are currently insured or not. You are then instantly provided with CA car insurance quotes from multiple companies for FREE.