The Importance of Auto Insurance in California

California is one of the largest states in the nation, and home to over 23,600,000 licensed motorists. To reduce the number of uninsured drivers in the Golden State and ensure that motorists maintain financial responsibility while behind the wheel, car owners are required to buy a minimum amount of auto coverage and insurers are required to electronically report policyholder information to the CA Department of Motor Vehicles (DMV).

For motorists to be considered financially responsible in the Golden State, they need to purchase and maintain California auto insurance that includes property damage and bodily injury liability with minimum limits of 15/30/5. This liability coverage pays for damages that are the result of an at-fault automobile accident, although the minimum limits that are required by the state may not be enough for the average driver.

On congested urban roads and freeways, the possibility of being involved in an accident is often elevated. Maintaining a property damage liability limit of only $5,000 may not be enough to pay for at-fault damages involving multiple vehicles or extensive damage. If a policyholder strikes a new car or does extensive damage to another person’s property as the result of an accident, any at-fault damages that exceed $5,000 would still have to be covered by the policyholder. For this reason, vehicle owners living in the Golden State, especially those who live in heavily populated areas, are encouraged to pursue auto protection that includes higher liability limits and additional coverage.
California and Automobile Insurance

California financial responsibility laws are in place to help protect motorists traveling across the 168,000 miles of public roadway in the Golden State. Choosing to ignore these requirements can have significant consequences. In addition to paying fines or reinstatement fees, if an uninsured motorist is involved in an accident their vehicle may be impounded and their driving privileges may be suspended. Avoiding these consequences and the dangers involved in operating an uninsured automobile can be done by purchasing vehicle coverage from a licensed insurer.

To assist motorists who may be unable to purchase auto protection, state legislators created the California Low Cost Automobile Insurance Program (CLCA). This program is designed to help residents satisfy state financial responsibility requirements by providing affordable coverage to those who qualify. Often vehicle owners who meet specific household income requirements or have accumulated a poor accident record can purchase adequate protection through CLCA to legally operate a motor vehicle.

In the Golden State there are between 450,000 and 500,000 traffic accidents reported annually. For this reason vehicle coverage is especially important for motorists who live in California. Although drivers are required to purchase a minimum amount of coverage, buying additional protection can be beneficial after an accident. Additionally, assistance from the CLCA can allow many low income vehicle owners to obtain an adequate amount of car coverage to legally drive.

Source: http://www.onlineautoinsurance.com/california/

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