Bonveda's Blog

If you live in California and drive a car, California Auto Insurance Is Mandatory. Even if you are a safe driver and have never had an accident, you must have insurance on the vehicle that you own. If you don't have insurance, you can be ticketed and fined for violating what is known as the financial responsibility law.

The minimum California car insurance coverage that is required is $15,000 Liability Bodily Injury (per person), $30,000 Liability Bodily Injury (per accident) and $5,000 Property Damage. This coverage is usually knows as 15/30/5 and is the absolute minimum that must be carried. While this is the minimum, it is a good practice to carry more than the minimum insurance. The cost of both medical treatment and car repair should an accident occur will often exceed the minimum coverage policy, leaving the driver financially responsible for any costs over the coverage.

Purchasing California auto insurance is actually relatively simple. California state law requires that each insurance company maintain either a website or toll free number that consumers can use to get competitive rates for coverage. Companies that issue California car insurance must provide this service if they are to do business in California.

Many insurance agents in California provide consumers competitive rates for California auto insurance. These agents take the information provided by the consumer and using this information compare rates available from several different companies. This service provided by the agents allows the customer to accurately compare rates available to them for the insurance that they feel they require.

If there should ever be a dispute between a policyholder and the insurance company, the State of California has a mediation system in place. Both parties, the insured and the insurance company will present their facts to the mediator and the mediator will work with both parties to come to an amicable solution to the problem.

The rates for the mandatory California auto insurance are not particularly expensive however due to the rate of claims against the insurance companies, the rates increase each year. Since 1997, claims against insurance companies each year. These claims are ultimately paid for by higher premiums for the all of the people insured. Insurance is mandatory, and if a motorist is pulled over by a police officer and can't show proof of insurance, the officer will issue an additional citation.