Share Button

What is required to drive on California roads?

California requires car insurance for its residents. It is mandatory to have protection to cover the basic expenses in case you are involved in an accident and need to pay for damages.  CarInsuranceQuote.com offers you several options customized for your particular situation. We also answer frequent questions you might have before making a decision.

How to get car insurance in California?

  • Buying liability coverage from a licensed car insurance provider in California.
  • Depositing an amount of $35,000 with the CA DMV.
  • Getting hold of a self-insurance certificate from CA DMV.
  • Purchasing a motor vehicle liability policy.
  • Obtaining a surety bond from any licensed California car insurance provider

If you currently have a liability policy, you don’t need to go and get another policy. However, most people feel more secure by having regular insurance rather than trying a liability coverage or surety bond.

According to California law, the minimum requirement for the liability coverage is:

  • $15,000 for injury/death to one person
  • $30,000 for injury/death to more than one person
  • $5,000 for damage to property

California does not required to show liability coverage for the following:

  • Off-highway vehicles
  • Vehicles registered to a government entity (city, county, state, federal)
  • Trailers
  • Special equipment vehicles
  • Vehicles registered under a planned non-operation (PNO) status

Proof of Insurance in California

  • Obtain an ID card from your insuring service provider.
  • Authorization letter form the DMV proving your surety bond or self-insurance.
  • SR-22 certificate for possessing a car owner’s policy.
  • A certificate to prove insurance of a leased or publicly owned vehicle.
  • A statement of facts for motor carriers that indicated that you have coverage your vehicle with Public Utilities Commission or the DMV.

Why would you request several California car insurance quotes?

If you need to buy a policy that suits your budget while complying with state requirements, you need to compare a couple of options to get the maximum coverage at the minimum price. Also, look for specific discounts offered by providers.  Prices in California are generally based on the following factors

  • Age- Elderly people generally pay less
  • Auto Theft-If you reside in high car theft area, you might be charged a higher premium because there is a higher chance of your car getting stolen and you filling a claim for compensation.
  • Credit History – If your credit history shows you have be sent to collection or have missed payments, you might have to pay higher rates.
  • Driving History- You clean driving record can make you eligible for a lower car premium as good drivers are involved in less accidents and hence file less claims.
  • Location-If the zip code where you live have high statistics for vandalism, car theft or prone to fire or earthquakes,  expect to pay more
  • Used vs. new vehicles- New vehicles are prone to car theft, cost more for replacement or repair hence are costlier to cover.

You may get discount on the car insurance quotes if you

  • Have good driving records with no or minimum accidents.
  • Have good academic records, since good students are generally assumed to be good drivers too.
  • Have your car protected with car safety gadgets.
  • Successfully completed a vehicle safety course
  • Are a senior citizen

Coverage offered by car insurance companies in California.

  • Bodily Injury Liability-it pays for the loss of the victim when you or your car is at fault.
  • Collision Coverage-Compensates for the loss your car suffers due to a collision.
  • Comprehensive Coverage- Offers coverage for losses due to vandalism, theft, fire, earthquake. That is anything else other than collision.
  • Fire and Theft Coverage- this is a supplement to the comprehensive coverage that covers your car particularly against theft and fire.
  • Gap Insurance-it insures your auto loans. It is a financial bridge between the cost of your car and the amount of loan due.
  • Liability Coverage-repays for the property damage or physical injuries to the victim in an accident when you are at fault. It will not pay for your injuries.
  • Pay-Per-Mile Coverage-your insurance premium depends on your driving habit. You need to pay more if you are a frequent driver.
  • Personal Injury Protection Coverage-It covers for the medical expenses in case of a car crash regardless of fault.
  • Physical Damage Coverage- compensates for the damage done to the body of your car due to any hazard on this earth
  • Property Damage Liability-It helps you repay for the damage that your car caused to somebody else’s property.
  • Rental Car Insurance- Pays for the repair or replacement of your rented car if it is damaged or stolen.
  • Underinsured/Uninsured Motorist Coverage-It helps you protect yourself from uninsured or underinsured motorists on the road who are not optimally or cover at all to repay for the loss you suffer in a car crash. This coverage compensated for your losses in such situation.

What if you do not have car insurance?

If you fail to demonstrate satisfactory proof of your car insurance in California, you might be subject to high penalties like

  • Suspension of your vehicle registration
  • Receiving a traffic ticket or $1,000 or even more if you are caught by a cop and you fail to show the proof of your coverage. The traffic ticket is followed by court procedure required to solve the situation.
  • Impoundment of the vehicle and fines.