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What the Law Says Regarding Auto Insurance in California

In California, the statutory minimum requirement of liability insurance falls into three parts:

•             Five thousand dollars for any one vehicle accident in respect to property damage

•             Fifteen thousand dollars for injury or death of one person in any one accident and

•             Thirty thousand dollars for injury or death of two or more people in any one accident

Auto insurance in California allows one to benefit the following:

–          To attain financial responsibility via an automobile or motor vehicle liability insurance cover,

–          A 35,000 dollar deposit with the California DMV,

–          A thirty five thousand dollar surety bond from a California licensed auto insurance company or self-auto insurance certificate granted by the California DMV to owners who have more than 25 Vehicles in their fleet.

Underinsured or Uninsured Motorist Coverage Requirements

Uninsured or underinsured motorist insurance coverage is not a mandatory requirement in the state of California but it comes highly recommended by the California car insurance companies. It ranges from a least amount of fifty thousand dollars to as much as one may be able to purchase.

Rental Car Insurance Requirements

Seeing, as all vehicles are required by law to be insured, auto insurance in California is mandatory even for rented vehicles. Most of the credit card companies and California car insurance companies have policies that are inclusive of rental car. However, if this is not included in the above options, auto insurance can be bought at the vehicle rental company. As proof of financial responsibility in case of an accident, a copy of the agreement between you and the rental company showing the insurance coverage must be with you in the car in case a law enforcement officer may ask for it.

Exclusion of coverage laws

In the state of California, there are legitimate reasons that an auto insurance company may exclude a driver from their car insurance coverage lawfully. This does not mean however, that they are not financially responsible in case of an accident. This may hold the policyholder personally responsible for the liabilities. The driver’s insurance coverage is also considered invalid if the excluded driver is allowed to get behind the wheel. All this is permitted under the California car insurance law.

Previous Auto Insurance Status Regulations

The state of California does not take lightly to auto insurance policy lapses. This means that motorists in California can no longer purchase auto insurance for a short period and then cancel it. The result is suspension of the vehicle’s registration. This big problem resulted in the 2006 law that saw the California DMV beginning to enforce the registration suspension.

It is therefore paramount that you understand the California car insurance laws if you are a resident or if you are planning to move to California. The information can be obtained from your local insurance agent or auto insurance provider. An easier way is to compare the rates of different companies online by entering your zip code at the slot provided on this page.