California Auto Insurance Guide

If you are looking for auto insurance in California, be sure you know all of the auto insurance requirements mandated by the Golden state. Each state will have its own individual auto insurance laws that aren't related to other states'. Be certain that you understand the required auto insurance coverage listed by your state before you take out a policy.

California Car Insurance Regulations

Most of California's auto insurance laws are similar to those laws in other states. For example, all registered vehicles must be insured if they will be operated on a public road. Also, you are obligated to carry proof of insurance in your car at all times - no exceptions. You can satisfy this requirement by carrying your insurance card in your car's glove box.

The state also outlines minimum coverage standards for all drivers, and monitors your coverage. If you cancel your coverage or fail to pay it and it lapses, your insurance company is required to notify the state. Be sure to keep your coverage current, otherwise you run the risk of fines and penalties.

Mandatory Minimum Coverage in California

California also outlines specifically how much insurance you must have to be legal. These minimum requirements should be considered a starting point for your insurance policy. The requirements per accident are: $15,000 for injury/death of one person, $30,000 per accident for death or injury, and $5,000 for property damage.

Motorcycle Coverage Requirements

Some people choose to forego auto insurance. If you are a motorcycle rider, you can (in theory) refuse auto insurance coverage and instead self-insure. To do this, you'll need to register a $35,000 bond with the state. That means you need $35,000 on hand and will deposit it with the state. If that doesn't sound like a feasible option, then you'll need to get insurance.

Remember that as the operator of a vehicle, you are responsible to follow all state laws. This includes those who ride motorcycles and those who drive SUVs.

California Auto Insurance Advice

California's laws are like most states. And like residents throughout the nation, it's important for California residents to understand that minimum coverage isn't the finishing point when it comes to insurance. It's actually the starting point. Remember that an insurance policy that meets just the minimum standards will only provide you with the minimum coverage and benefits. If you are in an accident, you will likely be liable for thousands of dollars in out-of-pocket costs because you chose a minimum-standard policy rather than a comprehensive insurance policy. Keep this in mind as you look over rates. You could be surprised at how affordable comprehensive coverage is, in comparison to the costs you'll incur from an accident.