Like all states across the nation, California has regulations and laws regarding car insurance that relate to drivers and the insurance companies that insure them. California has minimum coverage laws regarding driver liability and property and casualty damage.
California’s car insurance laws are outlined in the California Insurance Code. These laws include requirements for drivers’ financial responsibility. Drivers are required to register their vehicles and provide proof of insurance coverage under California law. Drivers looking for auto insurance Downey CA can get same day insurance when they need it.
Driver Financial Responsibility
California’s financial responsibilities laws require that drivers on California roads have auto insurance. If a traffic accident happens, the driver must provide necessary financial responsibility.
Minimum responsibility is established with car insurance policy coverage or a deposit of $35,000 in cash to the Department of Motor Vehicles in California. The driver can also provide a surety bond of this amount and/or offer a self-insurance certificate to meet these requirements.
Drivers are most likely to offer an insurance certificate as proof of financial responsibility in California. The certificate may be requested on demand in certain conditions, such as when the police request the driver’s registration in a traffic accident. An authorized letter provided by California’s Department of Motor Vehicles is sufficient if the driver is self-insured.
Driver Liability
California requires minimum liability coverage of all drivers. Drivers in California frequently use car insurance to meet these minimum liability coverage amounts of $15,000 for a single person or $30,000 for two or more people. Liability and bodily injury cover pay for injuries or death that occur when one or more people are involved in an accident with the insured driver.
Property and Casualty Coverage
California law also requires minimum coverage amounts for property and casualty damage. This provision covers damages caused to other persons’ property when the insured driver is involved in an accident. California’s minimum property damage coverage per vehicle is $5,000.
Uninsured Driver Insurance
Uninsured drivers are a problem in California. The state does not require insured drivers to carry uninsured motorist coverage (UM) but certain limits must be observed when it is applied. Uninsured coverage amounts must be equal to bodily injury or liability limits carried by the insured. When an insured driver elects UM cover, California’s insurers limit amounts to $30,000 per person or $60,000 for two or more people injured by an uninsured motorist in an accident.
Under-insured Driver Coverage
Underinsured motorist (UIM) coverage must be purchased when the California driver purchases uninsured motorist insurance. Car insurers in the state of California must offer an equal amount of UIM insurance. The insurer may also offer UIM coverage that is higher than the insured’s uninsured motorist cover.
This entry was posted on Monday, November 9th, 2015 at 6:48 pm and is filed under Auto insurance, Insurance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.