The California Department of Motor Vehicles monitors, manages and administers information for millions of people who drive each year. Drivers in the state must meet the minimum insurance requirements to obtain and maintain vehicle registration. Consequently, some people struggle to make their insurance premium payments because several factors affect and individuals’ minimum payment amount. Cheap car insurance in California is obtainable, but drivers should first understand what the state requires.
What Are the Minimum Auto Insurance Requirements in California?
Minimum insurance requirements establish some financial protection for people driving on the road, pedestrians and even people resting in their homes. Accidents happen and insurance provides medical and property damage coverage should an unfortunate event occur. In California, liability insurance delivers financial responsibility when an accident occurs. The California Department of Motor Vehicles requires that drivers possess minimum coverage for two important areas: injury or death and property damage.
California Insurance Code §11580.1b establishes the minimum coverage requirements for each area. The code states that drivers should have a minimum of $15,000 of coverage for the injury or death of one individual. Coverage should also include a minimum of $30,000 of coverage for the injury or death of multiple people. Additionally, drivers must have a minimum of $5,000 of insurance coverage for property damage. In many states, the SR-22, or Safety Responsibility, document verifies that an individual has the minimum required coverage. The auto insurance company sends the documentation to the motor vehicle department.
Drivers should keep in mind that minimum coverage amounts do not mean an accident will be fully covered should one happen. For example, if more than one person is injured, the first person might need all or the majority of the $30,000 in coverage. This means that the person who caused the accident would be legally and personally responsible for the remaining coverage. Consequently, many people encounter higher premiums when attempting to request a higher coverage limit.
What Factors Affect Insurance Premiums in California and How Can Teens Save Money?
Several factors influence the amount of money people pay for car insurance, including age. Teens might be required to pay extremely higher rates due to their age and lack of experience behind the wheel. Recent statistics released by the National Association of Insurance Commissioners reveals that the average cost of auto insurance in California was $800.00 in 2010, which includes the minimum liability coverage and excludes comprehensive coverage. Parents and teens can take a few steps to reduce the amount required and find cheap auto insurance in California.
Choosing an appropriate car has a significant influence on insurance rates. Parents and teens should select a vehicle that has a strong safety background. In addition, families can take advantage of discounts, such as good student, low-mileage driver and driver education deductions.
California drivers should perform meticulous research when searching for cheap car insurance in California. Online resources, such as Californiacarinsurancerates.org, can help consumers locate reasonable prices. If you are interested in researching insurance rates in California, enter your zip code now to compare rates today!
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