California Auto Insurance - (CA)

Auto insurance provides safety and financial security for drivers all over the country. But no two policies are the same, particularly when we look at different areas of the country. Insurance laws can change from state to state, so it’s extremely important to understand your current state’s regulations. Laws can vary on liability insurance minimums, mandatory coverage and even your obligations on what documents to carry in your vehicle. If you’re thinking about moving to another state, or simply receiving quotes for a new policy, be sure to learn your obligations under the law.

Auto Insurance Regulations in California

• All registered vehicles must be insured: If you have a vehicle and that will be operated on a public road, it must be registered and insured.
• You must carry proof of insurance at all times in the vehicle: If you’re pulled over and cannot prove that you have liability insurance, you run the risk of a minimum $500 fine, and possible suspension of your car plus court costs.
• Minimum liability insurance is required: For California, the minimum s are $15,000 for injury or death of one person and $30,000 for injury or death of more than one person; and at least a $5,000 property damage maximum for one accident.
• Under the California Vehicle Financial Responsibility Law, insurance companies are obligated to report private –vehicle policies to the state. This means the state will know if there is a lapse in your coverage.
• Get coverage immediately: When you first register a vehicle, you have 30 days to provide insurance information. If you change or cancel policies, you have 45 days to obtain replacement insurance. Failure to comply with these deadlines may result in the suspension or termination of your registration, a citation of at least $1,000 or vehicle impounding. If you get into an accident while your coverage has lapsed, you will be liable for all damages.

Consumer Tips

No matter the jurisdiction, remember that regulations outline minimum coverage. You likely will want to exceed the your state’s minimum requirements to comfortably drive on the road. For example, in California, the minimum coverage for property damage is $5,000 by law. But most insurance experts say that amount should be closer to $1 million. That’s a big difference, so don’t assume minimums are all that’s necessary.

You might want to consider increasing your liability coverage for complete protection. Remember, liability coverage is the maximum your insurance will pay. If you are declared responsible for $50,000 from an accident, but only have $20,000 covered, you are liable for the remaining $30,000.

Consider combining your auto and homeowner policies under the same insurance company. Chances are, you can save money on your premiums.

Be sure to receive competitive policy quotes from multiple companies. By making an educated decision about your coverage, you an save money.

Department Of California (CA) State Government That Regulates Car Insurance Rates:
Web Site: www.insurance.ca.gov

How To Contact Directly:
California Department of Insurance
Consumer Services Division
300 South Spring Street, South Tower
Los Angeles, CA 90013

Consumer Hotline
Toll Free: 1-800-927-HELP (4357)
Phone: 1-213-897-8921

California (CA) Mandatory Auto Insurance Minimums

• Liability: 15/30/5 = Bodily Injury Individual/Bodily Injury Total Per Accident/Property Damage
• Regulations Regarding Proof of Insurance: Proof Required - When Obtaining Registration, If Involved In An Accident, If Stopped By Authorities When Driving
• Penalties For Not Carrying Mandatory Insurance: First Offense = Fine of up to $200

How To File A Complaint About An Insurer:

Request for Assistance (RFA)
This page gives examples of problems that may be submitted to the California Department of Insurance with links to forms and contact information for filing a complaint.