Those operating a vehicle registered to the state of California must carry auto insurance. Even though liability policies are the most standard form of minimum insurance, California offers other plans to help a driver show financial responsibility. A $35,000 cash deposit can be made to the Department of Motor Vehicles or a driver who owns more than 25 vehicles can receive a certificate of self-insurance issued by the Department of Motor Vehicles. Any individual found noncompliant with any of these requirements will be penalized.

California law requires those operating a vehicle to carry physical proof of insurance. Drivers caught without an insurance card or other form of insurance documentation will receive a citation. The citation can be nullified if insurance information is supplied in court although administration fees may still be the expense of the driver.

Liability Insurance
Motorists in California must have a minimum of liability coverage to drive legally. This liability policy will provide funds to a victim after a collision and cover hospital costs as well as property damage assessments. Liability coverage in California is $15,000 per person for bodily injury, $30,000 per accident for bodily injury and $5,000 per accident for property damage. Due to the low property damage requirement, drivers should consider enhancing their overall property damage coverage by selecting a higher base amount.

Bodily Injury Policies
Bodily injury coverage is the first half of an auto insurance liability policy. The bodily injury half of the policy gives money, up to the stated amount, to an individual for the accrued medical expenses or loss in income. With a $15,000/$30,000 liability policy, each injured individual can receive no more than $15,000 for expenses. When more than one person is injured, $30,000 will be given to the group but each party can not receive over $15,000.

Added Protection
Being responsible for another person’s medical bills is a costly venture. California bodily injury minimums are small sums when considering the cost for hospital care. Aside from medical bills, the negligent driver could be found responsible for a garnish in wages the victim has suffered as a result of the accident. California residents are recommended to increase their bodily injury coverage to protect against any overages. If overages can not be supplied by the faulty driver, then that driver will have his or her assets appraised for value.

Property Damage Policies
The $5,000 minimum auto insurance requirement in California for property damage is used for property care and replacement for the victim. The minimum amount is not intended to cover the at fault driver’s car repair expenses. This amount pays up to $5,000 to the other party without limitations to the number of parties involved.

Increases in Property Damage Coverage
California has one of the lowest property damage minimums in the nation. As a result, motorists should strongly consider adding to their minimum requirement. California is also known to have some of the highest priced property in the country. Therefore, if a motorist is responsible for major damage to another vehicle or an outside piece of property, he or she may have large, out of pocket assessments.

Drivers in California should also consider the high traffic roadways throughout the state. Driving on high volume expressways increases one’s chances of making a connection with another vehicle. Even small accidents can become a costly endeavor for aesthetic repairs.

Uninsured/Underinsured Motorist Coverage
All California residents are offered uninsured/underinsured motorist coverage at the time of policy rating. Drivers who do not elect this coverage must sign a waiver which states their decision. Since the negligent, uninsured/underinsured driver is responsible for monies owed to the other driver, the insurance company carrying the uninsured/underinsured motorist coverage will be in charge of seeking out those expenses from the faulty party. In the meantime, they will also provide the insurance carrier with funds to cover the accumulated expenses.

Discounts on Auto Insurance
Drivers should be aware of discounts that can apply to auto insurance if they qualify. Discounts are given for having airbags, anti-lock brakes, anti-theft devices, multi vehicles insured and many other features. Check with a local insurance representative for a full list of available discounts. Make sure to ask the insurance companies about the different plans. Not all companies carry the same policies and each will have a variety of terms.