Obtaining A Southern California Auto Insurance Policy
Drivers or vehicle owners in Southern California need to provide proof of financial responsibility every time a law enforcement officer requests for it. The same is also required when a driver or vehicle owner figures in an auto accident and whenever a car needs to be registered or renewal of vehicle registrations. Lastly, it should also be presented when an automobile is inspected. In the state of California, there are four ways of accomplishing financial responsibility. Purchasing a Southern California auto insurance policy is one option. The insurance company will issue an insurance card indicating a listing of covered automobiles and drivers to the policy holder. The policy number and the expiration date of this policy will also be indicated in the insurance card. A cash deposit of $35,000 may also be made with the Department of Motor Vehicles (DMV) or a surety bond of $35,000 may be secured from a licensed Southern California auto insurance company. The last option is to secure a certificate of self-insurance from the DMV for those who own more than 25 vehicles. Those who are unable to do any of the options mentioned previously should have an approved alternative method of accomplishing financial responsibility. Failure to present proof of financial responsibility will result to penalties such as suspension of driving license, citation or you may be assessed an administrative fee. Traffic tickets resulting from failure to present proof of financial responsibility may be nullified if the vehicle driver or owner is able to present one before a traffic court. Flagrant violators of this policy may have their vehicles impounded as ordered by traffic court judges. Driving licenses of violators may also be suspended until they will be able to present proof that they have purchased a legitimate Southern California auto insurance policy.
The Compulsory Financial Responsibility Law of California requires all drivers or vehicle owners in Southern California to purchase a policy with coverage for minimum limits of bodily injury liability and property damage liability. The former protects assets of a vehicle owner or driver when he is found liable in an auto accident where other people are injured or killed. Property damage liability, on the other hand, covers for all costs incurred from car repairs or replacement or damage of property of other people. The statutory minimum limit for bodily injury liability is $15,000 for death or injury incurred from an auto accident. For multiple injuries, minimum liability limit is $30,000. On the other hand, minimum property damage liability is $5,000 for any one auto accident. Those who can afford are advised to purchase a Southern California auto insurance policy which covers more than the minimum amount of coverage for adequate protection. To protect the interests of consumers who are planning to purchase a Southern California auto insurance policy, the California Department of Insurance (CDI) was created. This regulatory industry manages and oversees the entire insurance industry in this state. Furthermore, it reviews all insurance products to ensure that all contracts and insurance rates are in accordance with the California Insurance Code. Through CDI, consumers can verify if a Southern California auto insurance company is licensed and whether or not it has a good track record of handling policy complaints and disputes. |