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What is the Purpose of Buying Car Insurance in California

In today’s era of globalization, man’s dependence on machines especially vehicles are steadily rising to meet with the demands of trade and social entertainment. The number of people owning cars especially powerful nations like the USA has also increased. But just purchasing a vehicle does not guarantee one a lifetime of vehicle safety and comfort. There might be binding rules and regulations for insurance of cars of California, but it also prove its significance for every car owner and driver.

The basis of insurance is to protect the economic value of an asset for a certain period of time, thus ensuring ultimate comfort of the owner. In keeping with the present demands, the motor vehicles department of California has enacted a number of amendments just to ensure better satisfaction of the citizens with respect to car insurance in CA. Since 2006, the Department of Motor Vehicles in California changed the law by which it verified the insurance norms for privately owned cars. Changes were enacted to bring in liability insurance for cars driven on Californian roads to provide financial responsibility for damages and injuries caused due to traffic accidents irrespective of the fault.

Another objective of the Californian Car Insurance Norms was to remove uninsured vehicles from Californian highways. By California Vehicle Code [CVC] 16058 car insurance providers are required by the law to electronically register private car insurance information to the DMV. However, no such rules apply for cars which are to be used for commercial and business purposes. This aforementioned facility which is in effect since 2006 allows the Department to ensure appropriate insurance coverage by law. In this respect, if the insurance information is not submitted to DMV within 30 days of the issuance of the registration card upon initial registration or transfer of ownership, your car registration will be suspended according to CVC 4000.38.

As financial responsibility is essential for all cars operated or parked in Californian roads, insurance too becomes a must. When asked for by law enforcers, for vehicle registration purposes or for traffic accidents, a document from a car insurance company is a must as well. Financial responsibility can be achieved by:

1. Coverage by an automobile or motor vehicle liability insurance policy.

2. A cash deposit of $35,000 with the DMV.

3. A self-insurance certificate issued by DMV to owners of more than 25 vehicles.

4. A surety bond for $35,000 obtained from an insurance company licensed to do business in CA.

By California Insurance Code, an 11580.1b minimum liability insurance requirement for private passenger cars stands at:

1. $15,000 for injury/death to one person.

2. $30,000 for injury/death to more than one person.

3. $5,000 for damage to property.

Through liability insurance, a person other than the car owner has to be compensated for personal injury or property damage. Car insurance in CA is quite expensive but if one is unable to afford liability insurance, the California Low Cost Automobile Insurance Program provides alternatives. Moreover if your car is suspended irrationally then you can submit your insurance information at- DMV PO Box 997405 Sacramento, CA 95899-7405. The insurance laws for cars in California have been tweaked to be made as mutually benefiting as possible.

All information regarding car insurance rates are available in our website for FREE providing visitors with many options before taking the final decision. Just enter your zip code to know more.