California Car Insurance Guide

California has one of the best programs in the nation for low cost automobile insurance programs that ensures every driver has the opportunity to obtain auto insurance. Specific details of the California Auto Insurance Program can be found at www.insurance.ca.gov.

There are actually four different ways to accomplish financial responsibility in California, unlike most states.

(1) You may obtain the minimum coverage listed below with a liability insurance policy

(2) You may leave a cash deposit of $35,000 with the Dept. of Motor Vehicles

(3) You may obtain a certificate of self-insurance for a fleet of 25 or more vehicles

(4) You may obtain a surety bond for $35,000

The California law requires the following amounts of liability coverage that you must maintain when using the option to have minimum coverage with a liability insurance policy: - $15,000 per person for bodily injury - $30,000 per accident for bodily injury - $5,000 per accident for property

Automobile liability amounts can be confusing. Sometimes you will see these numbers as 15/30/05; what does that mean to you as the insured?

The first number (15) is what the insurance company will pay out for each person that is injured in an accident if you are held legally at fault for the accident. The second number (30) is what the total injury payout by your insurance company per accident. The third number (5) is what the insurance company will pay out per accident for any property damage. It is important to remember that the first and second numbers are related. If, for example, you were in an accident and were at fault for that accident and the accident involved 5 people and 4 were seriously injured incurring serious medical costs, a claims battle may happen between you and the other parties. If the medical bills are over $30,000, you can be sued for the remainder of the costs in court if you are the at fault driver.

The next type of insurance that you will see on a quote that is required by law in California under option one is uninsured motorist coverage. This is fairly straightforward. Some states do not require motorists to carry the same insurance as California does. This covers the gap if you are involved in an accident whether you are at fault or not and the other motorist is not insured properly,.

Personal Injury Protection (PIP) is the type of insurance that most no-fault states have. In California, this is not required insurance under option one. The purpose of this insurance is the added security in case that you are in an accident and are unable to work due to those injuries. This type of coverage will cover the gap in employment wages. The cost of this type of insurance is relatively low and you may wish to consider carrying the maximum.

There are other types of insurance that you can purchase and may be required by your lien holder on a new vehicle. Collision is insurance that will cover you when your vehicle has any type of damage or collision. This includes other objects besides autos, as an example a tree falling on your car.

Comprehensive insurance covers the loss of the vehicle or its contents. It will cover loss from theft, natural disasters, and vandalism. The additional expense may be worth it to be covered if your car is parked in places that it may be susceptible to theft or vandalism. The cost of this insurance is drastically reduced if you have security devices on your car,.