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California Car Insurance Laws

California car insurance laws oblige drivers to have liability insurance at all times in order to have a financial coverage in the event of a traffic collision that might have as a result property damages or bodily injures. The insurance should pay for all the damages even if you are found at fault or not. In addition to this, the California state is also focused on removing the vehicles that aren’t insured from the highways.

The mandatory requirements that the California car insurance law imposes, state that a driver should carry the evidence of his financial responsibility in the car, at all times. Drivers are obliged to present proof of their insurance in three specific situations: when they are requested that by law enforcement, when they are renewing the vehicle’s registration and when the vehicle is involved in a traffic collision.

The California car insurance law further stipulates that a visit to the DMV (Department of Motor Vehicles) might require some further information like: the insurance card or the insurance documentation, a California proof of insurance certificate, a statement of facts or evidence that proves the vehicle is leased or owned by a governmental entity.

California car insurance laws

When it comes to the minimum liability insurance requirements you should know that for injury/death of  one person the minimum sum is $15,000, for the injury/death of more than one person the minimum coverage is of $15,000, while for damage to property the minimum is around $5,000. You should keep these numbers in mind, but you should not limit yourself at these values, because in case of a serious car accident those amounts won’t be able to cover for the damages. That’s why you should opt for a more secure insurance from an insurance company that is specialized in the field.

Moreover, there are four types of actions that you should take into considerations in order to be able to demonstrate the financial responsibility required by the California car insurance laws. First of all, you should have car liability insurance, a cash deposit with the California DMV of $35,000, a certificate that proves you are self-insured that can be issued by the local DMV and last but not least a surety bond for $35,000 that you should buy from a licensed company.

You should also keep in mind the penalties that the California car insurance laws enforce on drivers. Your registration can be suspended if your insurance policy gets cancelled and you don’t try to renew it within 45 days. Once the DMV is notified it will immediately suspend your registration. The same action might be taken against you if you don’t submit the insurance information to the DMV after your registration is issued. You get a grace period of 30 days.  Your registration will also be suspended if you provide false insurance information in order to register your car.

If you get a letter from the DMW that informs the suspension of your registration, you can submit your insurance information and/or reinstatement fee by using the online option (the web page at DMV.ca.gov), by sending mail to one of the addresses posted on the DMV’s site or by calling the automated voice system that will guide you through the procedure. No matter what alternative you choose, you should be able to provide the proof of liability insurance and, if necessary, proof that you have paid the reinstatement fee.

California car insurance laws aren’t harsh at all and the state tried its best to make California insurance affordable. Safety comes first and it’s always better to be on the right side of the law.


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