California Auto Insurance Required to Legally Drive in State
If you are a licensed driver in the state of California, you are required to show financial responsibility.
The financial responsibility can be shown in several ways, including California Auto Insurance, a thirty-five thousand dollar cash deposit with the DMV, a bond for thirty-five thousand dollars or a self-insurance statement issued by the DMV.
Most drivers choose the option of insurance.
In California, the minimum requirement for liability insurance is 10/20/5.
This means that your insurance will pay ten thousand dollars insurance to pay for personal injury of anyone not in you vehicle, a maximum of $20,000 if two or more persons are injured and five thousand dollars for any property damaged during the accident.
If you have had any dealings with the medical community in the past few years, you will quickly realize that if a person spends any time in a hospital at all, the ten thousand dollars will be used up very quickly and leave you responsible for a large portion of the health care of the person who was injured.
Twenty thousand dollars for more than one person's injuries is also insufficient.
There are numerous multi-passenger vehicles on the road that routinely carry fifteen or more passengers.
If you are responsible for an accident in which all the passengers are injured, you will be lucky if this amount of insurance covers the initial exam by a doctor for all patients.
You will find the minimum of $5000 to also be inadequate, as most vehicles today begin at a minimum price of almost twenty thousand dollars.
Having only the state minimum insurance would leave you owing for three fourths of the replacement value of a vehicle that you damage.
While the state minimum may be fine for a minor accident, you will want far more in coverage than the state minimum to feel secure in your California auto insurance coverage.
The financial responsibility can be shown in several ways, including California Auto Insurance, a thirty-five thousand dollar cash deposit with the DMV, a bond for thirty-five thousand dollars or a self-insurance statement issued by the DMV.
Most drivers choose the option of insurance.
In California, the minimum requirement for liability insurance is 10/20/5.
This means that your insurance will pay ten thousand dollars insurance to pay for personal injury of anyone not in you vehicle, a maximum of $20,000 if two or more persons are injured and five thousand dollars for any property damaged during the accident.
If you have had any dealings with the medical community in the past few years, you will quickly realize that if a person spends any time in a hospital at all, the ten thousand dollars will be used up very quickly and leave you responsible for a large portion of the health care of the person who was injured.
Twenty thousand dollars for more than one person's injuries is also insufficient.
There are numerous multi-passenger vehicles on the road that routinely carry fifteen or more passengers.
If you are responsible for an accident in which all the passengers are injured, you will be lucky if this amount of insurance covers the initial exam by a doctor for all patients.
You will find the minimum of $5000 to also be inadequate, as most vehicles today begin at a minimum price of almost twenty thousand dollars.
Having only the state minimum insurance would leave you owing for three fourths of the replacement value of a vehicle that you damage.
While the state minimum may be fine for a minor accident, you will want far more in coverage than the state minimum to feel secure in your California auto insurance coverage.
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