Auto Insurance in California

Known for its wine-rich environment, the state of California takes plenty of safety and precautionary methods to keep drivers safe on the streets. The state imposes strict laws on auto insurance policies and not having one could lead you to expensive circumstances. Learn more about the state’s regulations and requirements for auto insurance.

Basic requirements

According to the state laws of California, you have to have a Liability insurance to cover the costs incurred in an accident. The minimum requirements are

• $15,000 coverage for the injuries or death of an individual involved in an accident.
• $30,000 coverage for the injuries or death of more than one person involved in an accident.
• $5,000 coverage for damages to property.

Special discounts

The Prop 103 of 1987 introduced the Good Driver Discount policy, which forced insurance companies to reduced their rates by 20 percent. To qualify the Good Driver Discount

• You should be a licensed driver for at least three years.
• You shouldn’t have had more than one violation point on your driving record.
• You shouldn’t have attended traffic school because you violated traffic rules more than once.
• You shouldn’t have been at fault in any accident that caused a death or injury to a third party.

What you don’t need

In California, you can obtain these additional insurances, but they aren’t mandatory.

• Medical Payments – This covers medical and funeral expenses to you and/or your passengers injured in an accident.
• Underinsured Motorist – This covers medical expenses when another driver causes the accident and doesn’t have enough insurance.
• Uninsured Motorist – This covers medical expenses when another driver causes the accident and doesn’t have insurance at all.
• Collision – This covers repair expenses to your damaged vehicle.
• Comprehensive – This covers repairs and replacement of your vehicle damage by thefts, storms, or similar natural causes.

California’s specialty

In California, your car insurance card will serve as proof of your auto insurance. You can use this proof to register your car or renew your registration. You will get a new card each time you renew or change your auto insurance policy. The insurance card should include the following information.

• Details about your car like the make, year, model, safety rating, and estimated value.
• Your name and the names of any other drivers who are registered under your car’s insurance.
• Your insurance policy’s expiration date.

All Californian auto insurance companies have to report your insurance details to the DMV.

Violation

In California, if you’re pulled over by the police, you have to submit your proof of car insurance, your valid driver’s license, and your vehicle registration.

If you’re asked to produce your insurance and you don’t have one, you may have to pay certain fines depending on your offense.

• From $100 to $200 or your first offense.
• From $200 to $500 or your second offense within three years of your first.
• If you’re unable to prove your car insurance, the court may impound your car until you can.

The court may also suspend your car’s registration for not having an insurance in the following circumstances.

• If you have not replaced your insurance within 45 days of notifying the DMV of your insurance cancellation.
• If you haven’t provided details of your car insurance to the DMV within 30 days of first registering your car or transferring ownership.
• If you registered your car with false insurance.

If suspended for not carrying an insurance, you will receive a letter from the DMV. You should then provide a proof of your insurance and re-register your car with a fine if $14. You can apply for a reinstatement,

• At the DMV’s website page on Vehicle Registration Suspensions Insurance Program.
• You can mail your notification letter to the DMV at PO Box 997405, Sacramento, CA 95899
• You can mail your application without a notification letter to: DMV VRFRP Unit, PO Box 997408 N305, Sacramento, CA,95899-7408
• You can call (800) 777-0133 to register your application.

Driving Under Influence – DUI

It’s illegal throughout the United States to drive with a Blood Alcohol Content of over 0.08 percent for adults. The DUI penalties for offenses in California are:

For your first offense, you will be charged:

• From 4 days to 6 months in prison.
• Up to $1,000 in fines and penalties.
• From 30 days to 10 months of license suspension.
• In some counties, you may be asked to blow into an Ignition Interlock Device (IID) before you can start your vehicle.

For your second offense, you will be charged:

• From 10 days to 1 year in prison.
• Up to $1,800 in fines and penalties.
• Up to 2 years of license suspension (which can be reduced to 1 year in certain conditions).
• You have to blow into an Ignition Interlock Device (IID) before you can start your vehicle.

For your third offense, you will be charged:

• From 120 days to 1 year in prison.
• Up to $1,800 in fines and penalties.
• Up to 3 years of license suspension.
• You have to blow into an Ignition Interlock Device (IID) before you can start your vehicle.

For your fourth offense (when it is within 10 months of third DUI), you will be charged:

• Up to 16 months in prison.
• Up to $18,000 in fines and penalties.
• Up to 4 years of license suspension.
• You have to blow into an Ignition Interlock Device (IID) before you can start your vehicle.

Top 10 auto insurance companies in California

• California Automobile Insurance Company
• Essentia Insurance Company
• Garrison Prop & Cas Insurance Company
• GEICO Ind Company
• Allied Prop & Cas Insurance Company
• Wawanesa Gen Insurance Company
• USAA Cas Insurance Company
• Progressive Direct Insurance Company
• Foremost Insurance Company Grand Rapids Mi
• United Serv Automobile Assn

Help and support

California’s Auto Claims Mediation Program helps you solve disputes between you and your insurance

provider, without extra expenses to you. If your dispute involves any of the following you may be

eligible for help under the program.

• The extent of damages or amount incurred.
• The method of repairs.
• The cause of damage.
• Existing damage to the car vs recent damages.
• Value of total loss – In this case, your insurance provider declares your car damaged beyond repair and reimburses you the value of your car.

If your dispute involves the following cases, you’re not eligible for the program,

• Issues about your policy coverage.
• Legal matters about your policy.
• Legal and contract-based imitations on claim period.
• Actions of agents or brokers.

Visit the website of the Californian Department of Insurance for more details.

If you’re denied insurance because of a bad driving record, you can apply for a liability insurance through The California Automobile Assigned Risk Plan (CAARP). If you can maintain a clean driving record for three consecutive years, you can get an insurance outside the CAARP.