Learn The California Automobile Insurance Requirements For Operating Vehicles on Public Roadways
Minimum Automobile Insurance Requirements for California Drivers – Every single person who plans to drive in California should learn the legal requirements to do so. There are many rules that govern exactly how one must operate their car, truck, bus and motorcycle. Those rules are known as the traffic laws, and they are contained in the Motor Vehicle Code. There are additional laws which mandate that all people who drive within the state carry insurance or show substitute proof of financial responsibility. In this article the minimum coverage limits are discussed, as well as additional related facts and concepts that are helpful to know.
Minimum Automobile Insurance Requirements for California Drivers
In order to operate or park an automobile on a public roadway within the state, a driver’s financial responsibility must meet the minimum liability requirements. The requirements are dictated by law and are as follows:
- $15,000 for the injury/death of one person
- $30,000 for the injury/death of more than one person
- $5,000 for property damage
Liability Coverage Defined. Liability is used to compensate the other party/parties involved, not the policyholder, for injuries and property damage resulting from a car crash. These basic liability limits serve as the basic standard for financial responsibility; however additional types of coverages may also be available for purchase to drivers. To ensure coverage in different scenarios where liability will not cover the loss, additional options are recommended. These other types include: collision, comprehensive, medical payments, and uninsured/underinsured.
Substitutes Arrangements for Financial Responsibility. The most typical form of automotive financial responsibility, is a liability policy purchased from a private company such as State Farm, Allstate, AAA, etc. These policies are purchased privately from companies. In order to comply with state law, carriers must report all policy information for private-use vehicles to the Department of Motor Vehicles (DMV). Cars that are insured with commercial or business policies are not required to be reported to the DMV by carriers. There are other types that are accepted, these include: Making a cash deposit of $35,000 with the DMV, Obtaining a certificate of self-insurance, Getting a surety bond for $35,000, must be from a company licensed to do business in the state.
Possible Consequences for Not Complying with CA Law
Not possessing the minimum protection required can result in serious problems for a driver or owner. If a driver does not have the proper proof that meets the minimum set by the code, the auto can be subjected to the suspension of license to operate. This will most commonly happen when:
- A person cancels their policy and fails to notify the DMV within the allotted 45 day period
- The provider issues a registration card, but fails to submit the update to the DMV within a period of 30 days
- A driver is in possession of fraudulent registration information.
Evidence of coverage should be maintained at all times while driving or parking on the roadways. The law places the requirement on any automobile that will be operating or parked on any roadway within the state. All drivers must possess evidence of financial responsibility when driving. Proof of coverage must be provided in any of the following scenarios: Interacting with law enforcement relating to a auto; Registering an automobile with the DMV; When the motor vehicle is involved in a wreck, crash or accident, even if there is no other car involved.
What Suspension Means. When the registration of a car, truck, bus or motorcycle is suspended, it can no longer be legally driven or parked on state roadways. In the event the vehicle is discovered parked or operating in an unlawful manner the driver may be subject to citation and fines, the vehicle can be impounded, and the driver will be personally liable for any damages if a collision took place.
Car Accident Lawyer Fighting For Full Policy Limits
In all situations, the monetary recovery to the client has an upper limit set by the negligent party’s policy. This is true despite the severity of the injuries involved because one cannot collect more than the other side has. In most instances, the person who causes the accident has no assets to collect, leaving only the policy available to collect from. When assets do exist, bankruptcy can be an effective means for the defendant to escape paying even in the face of a court order. Therefore, it is extremely important that the attorney who is hired to prosecute a car accident case discover and develop a strategy for collecting the full liability limit available.
Not every attorney fights with the strategy of obtaining the most amount of money possible for their client. Here at The Napolin Law Firm, we investigate the case right away so that a winning strategy can be developed to win as much money as possible. A larger car accident claim settlement provides needed compensate to the client for their troubles. If you have been involved in a car, truck, bus, motorcycle, bicycle or pedestrian accident out on the roadways, do not delay in contacting one of our experienced trial attorneys. Anyone who calls The Napolin Law Firm needing help will receive a case evaluation at no charge. Call to speak with a lawyer today about your possible lawsuit. Dial 909-325-6032.