What Are The California Auto Insurance Requirements?

California is one of the states where the population has grown the most over the last couple of years and that means that the number of drivers has also increased. This resulted in more accidents and this means that California auto insurance requirements are stricter than ever. We shall see what these requirements are, and what it means to you if you’re main concern is in finding really cheap auto insurance.

Car insurance is required by law in all states, including California. Liability insurance, which is primarily what is required, is important because it can actually help you save money as well, considering that you are covered in case of an accident that is your fault. So, you pay whatever your premium amount is and, depending on what kind of car you own, that covers even total losses for the other driver.

The actual requirements are as follows: $15,000 dollars for medical liability insurance if there is only one occupant in the other car or $30,000 dollars if there are more than one, plus $5,000 dollars for any property damage caused, including car damage. One of the primary differences between costly policies and dirt cheap auto insurance is the amount of liability coverage provided.

You have the option of having your personal insurance for yourself and the car in case of an accident that you caused. This is optional, but still needs to meet some requirements in order to be valid from a legal point of view. This Uninsured Motorist Coverage is not required to be over $60,000 dollars in total damages and medical insurance by the state of California, but as mentioned above, you can pay as much insurance as you want. It is important that the premiums are not lower than those for the liability insurance that is required by law, and that you can see listed above.

If you decide to purchase uninsured motorist coverage, the company is required by the state of California to offer under-insured motorist coverage in the same amounts we talked about earlier.

So, California auto insurance requirements are limited to having liability insurance in certain amounts. If you have met that requirement, every other type of insurance is completely optional and up to you. However, the state of California recommends limited personal insurance amounts as well because you never know what might happen, and as much as you might want to make sure that other driver is covered, you would want to be covered as well. The general idea is to make sure that whatever happens, everybody that had to suffer in one way from that accident is covered and that you are not required to spend any more money.

In the end, getting cheap inexpensive auto insurance means paring the coverage amounts down to their lowest legal limits. While this may mean higher out-of-pocket costs in the event of an accident, that only applies if you are planning on paying to repair all the damage to your own automobile.

This entry was posted on Thursday, May 20th, 2010 at 4:18 am and is filed under Auto Accidents, Auto Insurance Costs, Cheap Auto Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.