What Are California Auto Insurance Requirements?

ByAnnie M Lacsina

In California, all vehicle owners are required to have auto insurance to ensure that they are protected in case of any accident. In 2006, a law was passed to remove all uninsured vehicles on the roads of California. Before any resident can register a vehicle, they are required to carry liability insurance, which includes $15,000 for any personal injury and $30,000 for multiple people. It also includes an additional $5,000 for any damage to property.

Cash Deposit
In lieu of car insurance, a driver or owner may deposit $30,000 to the Department of Motor Vehicles of California to be able to meet the requirement. Once a driver provides this amount of money to the DMV, he will no longer have to buy an insurance policy. Because the money is only "deposited", he can request to request the money back from the DMV once he avails of an insurance policy.

Self-Insurance
The government of California allows motorists to avail of a self-insurance. This is most ideal for businessmen or for those people who own several vehicles. People usually save more money by issuing their own insurance. This is most beneficial for those companies who have good knowledge about insurances. Once this option is selected, the California Department of Motor Vehicles will issue self insurance.

Other Types of Insurance
Aside from the mandatory auto insurance, the state does not require any other insurance from the vehicle owners of California. There are several auto insurance types available including collision, liability coverage, uninsured motorist and comprehensive insurance.

California Law
A driver should bring with him in his car any proof of insurance coverage because law enforcers may ask for it. Failure to provide them may result in additional fines, towing or impounding of your car. Proof of insurance should also be submitted upon renewal of registration or after an involvement to any type of traffic accident. The government of California requires all these so that motorists are protected in case car-related accidents happens. Uninsured vehicle owners often end up paying for more especially if they are not insured. This law in California helps protect its citizens by making insurance mandatory.

Noncompliance
Drivers in California who fail to provide proof of insurance when asked by the police or any authority is subject to the suspension of his license. Once a license is suspended, the person needs to pay for a certain fee to reinstate the condition of the license. When a license is suspended, driving privileges are also suspended. A driver issued with a noncompliance ticket can have the suspension waived by appearing in front of the traffic court and showing a valid proof of insurance.

Low Cost Insurance Options
The government of California has low cost insurance options available for their residents. However, not anyone can avail of it. It is only available for those residents with very low income and those with good driving records. If you want to take advantage of this opportunity, you need to be qualified and you need to follow certain guidelines as you apply.

Get more information on California auto insurance requirements you're going to need at http://www.californiaautoinsurancerequirements.com.

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Insurance: Car-Auto
Annie M Lacsina

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MLA Style Citation:
Lacsina, Annie M.".".29 Feb. 2012EzineArticles.com.8 Mar. 2012 .APA Style Citation:
Lacsina, A. M. (2012, February 29). . Retrieved March 8, 2012, from http://ezinearticles.com/?What-­Are-­California-­Auto-­Insurance-­Requirements?&id=6911214Chicago Style Citation:
Lacsina, Annie M. "." EzineArticles.com. http://ezinearticles.com/?What-­Are-­California-­Auto-­Insurance-­Requirements?&id=6911214EzineArticles.com© 2012 EzineArticles.com
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