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How to Be Anti Sue in California with Auto Insurance

California, better known as the ‘sue me’ state, is also known for paying highest insurance rates in U.S. By following strict lawsuits, this state has issued certain laws for the drivers with the help of vehicle financial responsibility and suspension Laws. By this law, all Californians registered as private car owners, must insure their vehicles. The insurance pays for any collision damage, which occurs during an accident and gives your vehicle full coverage, saving the driver from paying the penalty amount (after being sued by the other party) higher than the premium rate in California. It first came to the spotlight by the California Proposition 103: In 1988(November). This proposition was enacted by the voters, and it gave lots of security during purchase and maintenance of insurance for vehicles in California.


In 2006, Department of Motor Vehicles changed the law for auto insurance in California for privately owned vehicles. This legislation was done to ensure that all the vehicles driven on the roads of Californiashould have some liabilities before doing anything reckless and get financial protection from any mishap or collision regardless of fault. The insurance companies report the data of the insured cars electronically to the DMV following the law of California Vehicle Code [CVC]. This law increased the amount of awareness among the drivers and lowered the percentage of accidents and inculcated uniform and disciplined driving habits in the state.

One must carry the documents assuring the insurance of that vehicle in the following cases:

· While requested by law enforcement

· Providing evidence of financial responsibility

· At the time of renewing vehicle registration

· When the vehicle is involved in a traffic collision.

In some cases, you may also need to submit additional car insurance information to DMV like a document or identification card from your insurance company, California Proof of Insurance Certificate (SR-22) for broad coverage or owner’s policy, a DMV authorization letter, as an evidence that the vehicle is owned or leased by a public entity defined in Government Code 811.2, a statement of facts (REG 256) certifying the motor carrier has the proof of insurance on file with the public, and a surety bond for $35,000 from the company.

The other option is the, risk insurance or the liabilities insurance, where the main aim is the give full coverage to the person rather than the vehicle. The minimum liabilities for private vehicle damage or accident are: $5,000 for damage to property, $30,000 for injury/death to more than one person, $15,000 for injury/death to one person. If one cannot afford the liability insurance, then there is the low cost auto car insurance to help them. The norms of this law are very strict. There is a huge chance of suspension of the insurance of the vehicle if the following criteria are not fulfilled:

· Insurance information is not submitted to DMV within 30 days of the issuance of a registration card upon initial registration or transfer of ownership

· If the information provided by the owner is false.

If DMV is notified that a policy has been cancelled and a replacement policy has not been submitted within 45 days, the owner will get a letter by DMV informing about the suspension and ordering to provide correct information.

But choosing a genuine company for auto insurance in California is not an easy job, as the whole procedure is based on trust, so one must do extensive research before relying on any company. California has several or a large number of car insurance companies fighting against each other for business but one should choose the company with care, to avoid high insurance rate. The guidelines for choosing such a company are:

1) Explore the business world by visiting these companies. Going there doesn’t mean that you must do insurance at that time. It is just for checking.

2) Note down all the features of the companies you visited.

3) Match the quote of a company to the other to get a better discount.

4) The level of help given to the customer after an accident, because at the time of accident one will definitely be shaken or tensed. In such cases, the total responsibility lies solely on the insurance company.

Recently, California started auto insurance plans for the disabled persons allowing them to have a driving insurance without much complication. One can earn extra profit by this policy technique such as: Pet Coverage, Auto Rental, Full Glass Coverage, Roadside Assistance and Free Towing Services.

By entering the zip codes one can get all the information about policy terms in auto insurance within 3 minutes, for free!