California Car Insurance
A Beginners Guide to Understanding California car insurance
Many consumers have a misconception of what insurance really is; most people just think of insurance is something that kicks sand in the event of an accident, and they think of it in terms of having someone to sue if they're the victim of an accident. But, the truth is more than just that. Having insurance is a way of providing one's self with proper protection from financial losses and even financial ruin in some cases. When a person purchases an insurance policy that they are creating an agreement with the company whereby the company says that they will cover a certain amount of damages that may be brought about by accident or mishap.
California State Flag
Insurance prevents an individual from taking on a large, sometimes financially destructive, setback in many cases. By paying a set amount, either monthly, bimonthly or every six months, a person gets themselves a set amount of coverage that will protect them. In our state, purchasing California car insurance is a responsibility that comes along with automobile ownership. In accordance with the Department of Motor Vehicles vehicle code section 16451; every person registering a vehicle in the state of California must purchase liability insurance. Now this may seem like a bit of bullying from the state, but on the contrary, this is the state's way of making sure that all citizens on the road are equally covered.
The required limits on liability for California car insurance policies is currently set at $15,000 to cover the accidental death or injury of any one person involved in a single accident, or $30,000 for all persons who are injured or killed anyone specific accident. Additionally, the state also calls for property damage coverage of no less than $5000 for anyone specific accident; this means that $5000 worth of coverage has to be available for any incident.
An interesting option that the state does give, is that there are several ways of satisfying the responsibility that a driver has. A driver can meet his financial obligation for coverage by purchasing policies in the amounts specified above, or by submitting a cash deposit of $35,000 to the Department of Motor Vehicles, or an individual or organization with more than 25 vehicles can submit a certificate of self-insurance to the DMV, and finally, a person or organization can obtain a surety bond from a licensed insurance company in the state of California for the amount of $35,000. Which ever method is chosen, each and every California driver and vehicle owner must carry no less than the stated limits of minimum liability insurance or an approved alternate option. These options, including the bond and the deposit, pretty much set aside the necessary funds to cover an accident - if an accident does occur and these funds have to be drawn down, then a sufficient amount has to be resubmitted under those options to bring the total amount back to the mandatory $35,000 deposit or bond.
California Car Insurance
Now, very often, consumers will ask the question what happens if I do not have the required California car insurance on my vehicle, and an accident occurs? Well the very simple answer is that you not only will face the suspension of your license you'll also be on the hook for whatever amount of damages was done in the accident if you are found at fault. And even if you are not found at fault, or if you were involved in a single car accident, where you ran into a tree or something of that nature; you'd be totally responsible for the cost incurred in preparing your own vehicle. Aside from needing the proof of insurance at the time of any type of accident, keep in mind that any time an officer of the law asks for your proof of insurance, you are required by law to present that documentation. This means that whether or not there is an accident, if you are pulled over for any reason, the officer can and will ask for that along with other documentation supporting your are right and ability to drive. Whenever you have to register or renew your registration for your vehicle you will also be asked for proof that you do have proper insurance coverage; and if you do not, you simply will not be getting a renewal registration until such time as you can prove that you have California car insurance.
Proof of insurance will be issued to any vehicle owner who purchases a California car insurance from a licensed insurer; the insurance company will mail out or issue a card that shows that you are properly insured for a specific period of time before a new card will be issued. Of course, with the set dates being provided on the insurance card, it is important that you maintain your premium payments during that time otherwise the card is simply a proof that you once had insurance; an officer will always check to make sure that the insurance is still in force. A final note: always be careful to carry the proof of insurance in your vehicle; this is not a car to be added to your collection in your wallet or purse or pocket. You want to make sure that this card stays with the vehicle at all times because if you or anyone else driving your vehicle should happen to be pulled over by police and the card is requested to show proof of insurance, but you do not have it there on site it is likely that you will face a suspension of your license, or at least a ticket for not having proof of insurance with you at the time of the incident. In some cases, you will find that officers who will allow you to hold on to your license, but you will be required to show up in court and prove that you had insurance at the time you were pulled over, but you just didn't have the insurance card on your person. For obvious reasons, you will still be subject to fines and fees, even if you did have insurance all along. So this emphasizes the importance of having proof of insurance remained in the vehicle at all times.
