Provisions Of A California Auto Insurance Law
The Compulsory Financial Responsibility Law requires all vehicle drivers and owners in the state of California to present proof of financial responsibility when they register their vehicles or renew the registration of their vehicles. This California auto insurance law also mandates that all concerned individuals should purchase an auto insurance policy that follow the statutory minimum limits of liability insurance for bodily injury and property damage arising from auto accidents. Financial responsibility according to the previously mentioned California auto insurance law can also be accomplished in three other ways aside from purchasing an auto insurance policy. Vehicle owners or drivers may opt to make a cash deposit of $35,000 to the Department of Motor Vehicles (DMV) or a surety bond for the same amount may be obtained from a licensed auto insurer. For those who own a fleet of more than 26 vehicles, they can be issued a certificate of self-insurance by the DMV. The California auto insurance law also mandates that proof of financial responsibility be presented to law enforcement officers if they request for it and if the insured party figures in an auto accident.
Moreover, this California auto insurance law mandates that minimum limit for bodily injury liability should be $15,000 for an injured person and $30,000 for multiple injuries. Minimum liability limit for property damage is also pegged at $5,000. Consumers can choose to purchase those auto insurance policies that will extend more than the minimum provisions required. Non-compliance of this provision of the California auto insurance law will result to fines and other administrative penalties that will be assessed to the erring vehicle driver or owner. Frequent violators may stand to lose or have their driving license suspended. Since the California auto insurance law mandates that an auto insurance policy be purchased, it is wise for customers to shop around for the least expensive policy that will allow him the same benefits as other identical auto insurance policies. To be able to evaluate and compare policies and premiums, independent insurance brokers or agents, or company representatives may be contacted. Auto insurance quotes may also be requested from direct writers or insurance companies that will directly sell to the public. Other important sources of auto insurance rates are web sites that can be accessed through the Internet. Assembly Bill (AB) 2677, another California auto insurance law, was implemented in January of 2005 to make it more convenient for people in California to compare auto insurance rates. This requires all insurers to provide customers with information regarding their lowest priced personal auto policy by maintaining a toll-free telephone number or by maintaining an Internet web site. When shopping for auto insurance policies, auto insurance rates should not only be the main consideration. Also, take note of the reputation of the selected insurer in handling insurance-related complaints and claims. See to it that it is licensed and that it is financially capable of providing its clients the benefits outlined in the auto insurance policies that they are offering. |