Unlike a few states, California is not one that has no-fault insurance. This is one of the main reasons you need to know CA auto insurance information before buying your policy. California uses the standard requirements in the case of an accident where the person deemed at fault is responsible for paying all the expenses of the accident. To register a vehicle each year, every driver must have at least the minimum amount of coverage required by the state. There is also a lower insurance requirement set for those who qualify.
The minimum coverage required for California drivers is no less than five-thousand dollars for property damage, no less than thirty-thousand dollars for multiple person injuries and at least fifteen-thousand dollars for just one person injured.
Many drivers choose to buy uninsured motorist protection along with their basic policy in the event that the person who causes an accident does not have coverage. This added protection will pay for their property, their passengers and themselves in case the other driver is uninsured.
The insurance agents are required by law to offer any prospective buyer the best pricing possible for the minimum requirements that the buyer wants to purchase. There are actually different options for agents to meet this requirement. Instead of using an insurance agent, a vehicle owner can also meet the minimum requirements of the Department of Motor Vehicles by depositing thirty-five thousand dollars with the DMV or by registering a surety bond for thirty-five thousand dollars from legally licensed business in the state of California. This is self-insuring and along with the deposit there is a certificate that is needed issued from the Department of Motor Vehicles.
Another mandatory regulation of the state of California DMV is providing proof of insurance each year when the registration for an automobile needs to be renewed. This regulation has been active since the year 2006. If there is a gap in your insurance coverage for any reason you will have forty-five days to present proof of insurance before your registration for your vehicle is suspended.
Uninsured motorists have been a problem, so the California Low Cost Automobile program was implemented to help prevent uninsured motorists from being on the road. The driver must be over nineteen years of age and have a clean driving record with no more than one accident in the past three years that was deemed their fault or have no more than one point against their driving record. Also, they must not have any convictions against them that are considered criminal involving an automobile. The vehicle they drive must not be worth more than twenty-thousand dollars to qualify.
The program, for those who meet the qualifications, means that ten-thousand dollars liability for one person injury or twenty-thousand dollars for multiple people injured and at least three-thousand dollars for damage to property is allowable.
