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What are California car insurance requirements?

In order to obtain car insurance in the state of California, you must meet several requirements. First and foremost, a motorist must be a resident of the state and be considered legally competent to own and operate a vehicle. California is not a state that requires its residents to have a state issued driver's license in order to purchase car insurance. The vehicle also does not have to be registered in your name. In recent years, the car insurance companies in California have relaxed their requirements for registration and driver's licenses in order to offer more flexibility to residents of the state. You might be surprised at the percentage of motorists who do not have a valid license or who drive a vehicle registered in another party's name. In order to obtain the most affordable rates on your insurance premiums, you should obtain a car insurance quote online.

In the state of California, a motorist must maintain a certain level of insurance coverage in order to legally operate a vehicle. You must have a liability policy with a minimum of $15,000 in bodily injury liability, a $30,000 minimum for multiple injured motorists, and a $5,000 minimum in property damage liability. These figures are referred to as the 15/30/5 coverage limits for the state. California operates under what is called a Tort system when it comes to dealing with automobile collisions. This means that one party involved in the accident must be determined to be at fault. This driver, and his or her insurance company, then becomes financially liable for the all other parties' medical expenses and property damage repair costs.

You should be aware of the fact that what a state's minimum requirements are for coverage may not be enough to provide you with adequate coverage if you were to be involved in an accident. If there is a remaining balance for expenses incurred by other parties, you will be held liable for the balance. Hospital expenses and vehicle repair costs can mount quickly, and they typically emerge when you have next to nothing in the bank account. Therefore, it may be prudent for you to protect yourself further from such a situation and increase the coverage amounts on your policy. For example, if you were to strike another motorist who broke their nose and cracked several ribs, the medical costs (including transport in an ambulance) could quite possible exceed $20,000. If you possessed only the minimum amount of insurance required by California law, you would owe a balance of $5,000. In today's fallen economy, there are not many motorists who have quick access to that amount of money.

Online quotes are useful in obtaining the varying rates among different car insurance providers. The coverage limits and any additional features you select will play a role in affecting the amount of money you pay in premiums. However, it is possible to achieve your desired coverage at an affordable rate. A quote is usually free and only takes a few moments of your time. The more you educate yourself about the policies and the prices available to you, the more likely it is that you will find exactly what you are looking for. 

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