Auto Insurance Requirements for Citizen Drivers in California

If you are a driver in California, you have to provide proof of financial responsibility. In California, every resident is required to carry liability insurance. The minimum requirement for auto insurance is 15/30/5. Drivers need to carry a bodily liability insurance that worth $15,000. For accidents that involve several persons, the minimum liability insurance you have to carry is $30,000. The minimum requirement for property damage insurance is $5000.There are many ways Californian drivers can achieve financial responsibilities. You can place a cash deposit that worth $35,000 with the department of motor vehicles (DMV). If you own a fleet of cars, you can carry a certificate of self insurance. You must own more than 25 vehicles before you are qualified to place the cash deposit as replacement for purchasing insurance.Alternatively, you can purchase a $35,000 surety bond. The $35,000 surety bond can be purchased from an insurance company.If you are renting a car, make sure you get a copy of the car rental agreement from the car rental company. The car rental agreement includes information about the coverage for rental cars. You can also obtain auto rental insurance from credit card. Many credit card companies provide coverage for rental cars.Personal credit history is one of the factors that insurance company considers when determining the rates. According to the law in California, insurance companies can use other factors to determine the auto insurance premium rate. Some of the factors that insurance companies use to determine the rate are premiums, creditworthiness, and coverage included in the policy.California practices the tort system so the at fault person has to pay for the damages. The person who is at fault must pay for all the damages involved in the accident including car damage cost and medical cost.California does not require its residents to carry uninsured/underinsured insurance coverage. Despite that, it is recommended that you purchase an uninsured/underinsured insurance coverage that worth $50,000. You should purchase as much uninsured/underinsured coverage as you can afford. In this way, you will be safe from financial disaster.As a car driver, you have responsibility to renew the auto insurance policy every year. If you neglect to settle payment for the premium, your auto insurance will lapse. The penalty for allowing your insurance to lapse is severe. If you let your car insurance lapse, DMV will suspend your car registration. In addition, your vehicle will be impounded as well.