California Vehicle Insurance and Liability Requirements Explained
by Kevin Smith AuthorIt is surprising, but not everyone who drives in California knows or
understands the various car insurance liability requirements mandated by law.
This can lead to serious consequences, particularly if someone is involved in
an accident. If you are in the market for San Diego car insurance, here is what
you need to know.
California
is an “At Fault” State
State law falls heavily on the side of liability as it pertains to who
caused an accident and any mitigating circumstances that led to the accident.
The easiest way to summarize the law in this regard is that California believes
that if you cause an accident, you are responsible for virtually all the
financial damage associated with your actions.
In fact, if you are an accident victim, there is very little you cannot
pursue financially. This includes both insurance claims as well as civil
liability. Compensation the person who is adjudged to have caused the accident
will be responsible for include medical, lost income, property damage, pain and
suffering, etc.) Accident victims can pursue a third-party claim via the
at-fault driver’s car insurance and they can file a personal injury suit
against the same.
Minimum
Coverage Requirements
Liability insurance is mandated in California and the amount a driver
must carry is determined by a legally mandated formula. The purpose of the
formula is to ensure that drivers, passengers and pedestrians who might be
injured because of actions the insured took are fully covered. The minimum
coverage requires is as follows:
- $15,000 for
injury or death to one person
- $30,000 for
injury or death to more than one person
- $5,000 to
cover property damage.
It is important to know that these are minimums. In reality, a smart
driver will carry more liability than the minimum, even if they are a very safe
driver with a great driving record. For all drivers, once the policy limits are
met, the person who caused the accident is personally, financially liable to
those involved in the accident. Literally, one mistake can end up in financial
ruin if the person who caused the accident is not adequately covered.
Alternative
Scenarios
Liability insurance under California law also will cover family members
or another driver you allow to use your car. In addition, it will cover rental
car accidents and subsequent damage. It does not cover the policyholder (that
is additional, different insurance.)
If you drive in San Diego, car insurance is more than just a good
idea; in the area of liability, it is mandated and highly recommended you
exceed any minimums. That way, if the worst happens, you are at least
financially secure.
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Created on Jan 20th 2020 22:59. Viewed 346 times.