California Auto Insurance Guide

Whether you’re taking the Silverado Trail through Napa’s Wine Country, cheering for the Chargers at San Diego’s Qualcomm Stadium, skiing Mammoth Mountain, or doing business in Sacramento, the Golden State has miles of open road, things to see and places to go. From Santa Barbara to El Centro, San Francisco to Tahoe and all points in between, car insurance is crucial to being a responsible California driver.

 

Auto Insurance Resources for CA State Residents

As of 2010, there were nearly 24 million licensed drivers and nearly 28 million registered automobiles and non-commercial trucks in the Golden State. The Insurance Research Council estimates that 18% of California’s drivers are uninsured; other sources put the number as high as 25%! The cost of uninsured California drivers is an estimated $1.4 billion a year. In 2008, the California Highway Patrol reported that California’s traffic fatalities decreased 13.6%, reaching its lowest level since the federal government began tracking that statistic in 1975. Strict adherence to seat belt laws and increased DUI law enforcement were credited for the improvement. The Insurance Institute for Highway Safety gave California the highest rating in the nation for laws pertaining to DUI, Young Driver Licensing, Seat Belt Use, Child Restraint Use and Motorcycle Helmet Use in its 2009 report. Despite increased law enforcement, there were still 1,029 alcohol-related traffic fatalities in 2008, representing 30% of all California traffic fatalities. Uninsured drivers and alcohol-impaired drivers are good reasons to be sure you have enough car insurance while living and driving in the Golden State.

 

California State Minimum Auto Insurance

California state law requires you to carry a minimum amount of car insurance or face severe penalties. California has a traditional tort-based system. Cause an accident and you can be sued. While California does not require that you carry Uninsured/Underinsured Motorist Coverage, additional personal liability or Collision and Comprehensive, if you own property or other valuable assets, you would be wise to supplement the minimum requirements shown below:

• $15,000 bodily injury per person per accident
• $30,000 bodily injury for all persons per accident
• $5,000 property damage liability

 

Car Insurance State Car Insurance Laws

California requires that you carry proof of California auto insurance in your vehicle and produce it if a law enforcement officer asks to see it. Conviction for a first offense carries a fine of $100 to $200. Subsequent citations within 3 years of a prior conviction carry fines of $200 to $500. You may also suspension of your driver’s license and vehicle registration until you are able to produce proof of insurance. There will be reinstatement fees. You may also face vehicle impoundment. If your vehicle is impounded, you’ll have to pay for the towing and storage.

If you are in a car accident and do not have car insurance, your driver's license will be suspended for 4 the DMV. You will have to pay a reissuance fee of $125. In addition, you will need to file an SR-22 Proof of Financial Responsibility form with the CA DMV.

California requires automobile insurance companies to provide private vehicle insurance information in electronic form to enter into its database. If the state learns that you have no insurance, you will be notified and given 30 days to produce proof of California auto insurance. Failure to comply can result in suspension of your registration.

Your registration can also be suspended is you cancel your policy and don’t get a new one within 45 days, buy and new car and don’t buy insurance within 30 days, or provide false proof of insurance.

The California Department of Revenue conducts random survey checks on registered car owners to check on their insurance status. Failure to comply carries the same fines mentioned above.

State law currently permits California insurance companies to use your personal credit history to assign your car insurance premium, and to determine if you can make payments or must pay your annual premium in full.

 

Regulating Agency and References

California Department of Insurance
This agency is responsible for regulating vehicle insurance policies sold in the California. For more information, visit their website at www.insurance.ca.gov.

California Department of Motor Vehicle
This agency is responsible for licensing drivers and registering vehicles. You can learn more about California auto insurance requirements, penalties and related information at www.dmv.ca.gov.

National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC provides a forum for the development of uniform policies when appropriate. NAIC members are elected or appointed state government officials who regulate the conduct of insurance companies and agents in their respective states or territories. Visit NAIC at http://www.naic.org

Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at http://www.iii.org/

 

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