California state law
requires drivers to be financially responsible for property damage and injuries
that result from their actions while operating a motor vehicle. State laws also
specify the penalties for not meeting the insurance requirements in California.
However, the California
Department of Insurance estimated that California had 3.5 million motorists
driving without insurance in 2004. The California Low Cost Auto Insurance Program
allows good drivers to obtain the minimum auto insurance required in
California.
Requirements
Drivers in California
must carry insurance to cover damage to other people and property, commonly
known as liability insurance. California law doesn't require motorists to carry
insurance for their own medical costs or to repair their own vehicle. The California Department of Motor Vehicles specifies that the state minimum in California is normally $15,000 for each
person, a total of $30,000 for each accident and $5,000 for property damage.
Drivers who meet the requirements for the CLCA program have lower liability
requirements. The CLCA policy currently provides $10,000 worth of coverage for
each person, a total of $20,000 for each accident and $3,000 coverage for
property damage.
The failure to show
financial responsibility is a violation of Section 16029 of the California Vehicle
Code. The penalties for violating this code include fines, vehicle
impoundment and a suspended driver's license for at least one year if you are
involved in an accident. These penalties become more serious if an uninsured
motorist is involved in an accident, and may require the uninsured driver to
pay for damages and injuries that result from the accident. These penalties are
in addition to any other provision of law that may result in additional
penalties.
Fine
MrTicket.com
reports that failure to provide evidence of financial responsibility carries a
maximum fine of $796, according to VC Section 16028(A). This fine may be
reduced if you show proof of insurance after the violation. The purpose of
these fines is to reduce the number of drivers in California who drive without
insurance. The court can also order the defendant to maintain financial
responsibility over the vehicle for at least one year.
Impoundment
The court also has the
discretion to order a vehicle impounded when the registered owner is unable to
show proof of financial responsibility. The release of a vehicle that has been
impounded under the circumstances requires the registered owner to meet several
conditions. The registered owner of the vehicle must present proof of financial
responsibility for the vehicle and pay all fees associated with the towing and
storage of that vehicle.
Legal Ownership
California law also
makes provisions for vehicle impoundment in cases where the legal owner and
registered owner are different parties. This typically occurs when the
registered owner is making loan payments to a financial institution, which is
the legal owner of the vehicle. If the legal owner of the vehicle is a
financial institution, it must be authorized to operate as such in California
before the vehicle may be released from impoundment. The legal owner must
present foreclosure documentation if that owner is repossessing the vehicle.
A legal owner that
obtains the release of a vehicle from impoundment may require the registered
owner to pay storage and towing charges relating to the impoundment. The legal
owner must also make reasonable efforts to ensure that the registered owner
meets the requirements of financial responsibility before releasing a vehicle
back to the registered owner.
California Low Cost
Automobile Insurance Program
California's Low Cost Auto Insurance
provides good drivers with car insurance policies that meet the state's minimum
insurance requirements. These policies provide coverage for the primary driver
of a vehicle and other people who qualify as secondary drivers. Each driver may
have up to two CLCA policies, where each policy applies to a different vehicle.
In addition to the minimum liability coverage required by the law, CLCA also
provides two types of optional coverage, including bodily injury from uninsured
motorists and medical payments.
The annual premium of
a CLCA policy varies by county, with the current premium being as low as $248 a year for Ventura county residents, and you can pay the premium over time with
several payment plans. You can also make a $125 deposit and pay the balance
within 30 days or in five installments every other month. A $100 deposit
requires you to pay the balance in six installments every other month. You can
also make an initial deposit of 15 percent of the annual premium and pay the
balance in six installments every other month. Each installment payment
requires an additional fee of $4.00.
Contact Pacific Preferred Insurance Agency
at 805-351-3851 to learn more about obtaining car insurance in California.
