California Auto Insurance Requirements

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Hey I’m Todd Spencer, a very active blogger and car insurance consultant in the LA area. I believe that auto insurance should be more than an after thought. That’s why I write so much about how to avoid paying too much for you insurance. Be sure to get a quote now so you can start saving a ton of money on your car insurance.

In California, the Department of Motor Vehicles along with insurance companies collaborates together and decides which cars have not been registered. These institutions keep strong ties to insure that all drivers in California have auto insurance. As a matter of fact, in California, no one can register their vehicle without auto insurance. If an individual is found not to have the necessary insurance and they are stopped by a police officer, they risk losing their vehicle altogether since the officer has the authority to impound it on the spot. Furthermore, there is a considerable fine involved if there is an accident. The vehicle owner or driver is responsible for any damages that may occur.

Abiding by the California auto insurance requirements is one of the first things a driver must tend to when they move to California. The required California insurance will supply the insured with the basic protection if they happen to be injured in an accident. Nonetheless, thereís no reason for a driver in California not to include comprehensive and collision insurance so that their personal vehicle is covered if the vehicle is damaged during an accident.

Obeying the California auto insurance requirements is a necessity. Here are the minimum auto insurance requirements that are demanded of drivers in California in order for the individual to maintain their vehicle registration:

  • [$5,000.00] for damage to material goods
  • [$15,000.00] for harm or a fatality for one individual
  • [$30,000.00] for harm or a fatality for more than one individual

The previous list states the three important California auto insurance requirements that must be heeded. There are a few auto insurance plans that supply for more wide-ranging insurances that include damage to the individualís vehicle. It is up to the person to determine if they want to benefit from them since they are more costly than the basic California required vehicle insurance plans. The only plus to extra insurance is that the person receives more advantages and coverage if their vehicle ever needs repair, usually their insurance company will foot-the-bill.

California is one of the more strict states when it comes to auto insurance requirements. This is true whether the individual owns or rents the vehicle. The majority of auto insurance policies and credit cards comprise of insurance for rental cars. If the individualís credit card or auto insurance policy has no inclusion for rental cars, the individual must purchase insurance from the car rental company. While the rental vehicle is being driven, a copy of the rental arrangement stating the insurance coverage must be placed in the vehicle at all times.

Overall, California auto insurance requirements are not so complex; however, the rules must be obeyed. Additionally, the state of California hands out harsh penalties for anyone who permits their insurance to become invalid. From October 2006, the California Department of Motor Vehicles have commenced to suspend car registrations when insurance policies are no longer valid or if they are canceled. In the desire to keep motorist from buying auto insurance only for short intervals, the California legislatures passed this bill.


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