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Auto Insurance in California

Auto insurance has a long history in the United States. With the invention of the automobile came the possibility of being involved in a car collision, and the states enacted financial responsibility laws. However, the states became concerned that everyone who causes a collision would not have the means to pay the bills if they hurt someone or caused damage to their property. For this reason, each state wrote laws requiring that people purchase auto insurance if they are going to drive a vehicle.

One very good reason to have auto insurance in California is because it is the most affordable way to prove that they will take financial responsibility for damages they cause in a car collision. The state does not require that people buy auto insurance before they can register their vehicles, but those who choose not to purchase it will still be required to take financial responsibility if they cause a collision.

Do Other States Require that People Purchase Auto Insurance?

In California and other states, people may self-insure, but they will need to have at least 25 vehicles registered in their names. They may also leave a deposit with the county or the DMV, but this requires a large sum of money. In California, drivers must deposit $35,000, and this is much more than most people can afford. Some states even allow people to be legally uninsured if they meet the qualifications, but this does not absolve them of taking financial responsibility if they cause a collision.

What If People Do Not Purchase Car Insurance?

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If California drivers cause a collision, they will be the ones who will be responsible for paying the medical bills for everyone who was injured in the crash. It doesn’t matter how many people were hurt. If 20 individuals had bodily injuries for which they would need medical attention, the person who caused the collision would be legally liable for paying their medical bills. This could amount to a great deal of money without auto insurance coverage.

California’s Minimum Requirements

In order to make sure that California drivers would be able to take financial responsibility if they cause a collision, the state requires that they have bodily injury liability and property damage liability in the following limited amounts:

• $15,000 for one person’s medical expenses

• $30,000 for all those injured in the crash

• $5,000 for all those with damaged property

Why Is Uninsured Motorist Coverage a Good Idea?

Although everyone is required to purchase liability insurance that covers third party medical and property repair bills, not everyone does so. These individuals are making the decision daily to drive on California’s roads where they have a chance to cause a collision. Those who are hurt in an accident with an uninsured driver may not receive any money from the at-fault driver to have their medical expenses paid and their vehicles repaired. Da-Les Autobody has been serving the Sunnyvale, Cupertino, Mountain View, Santa Clara, and greater Bay Area for 35 yeears.

Auto insurance companies have coverage that will pay their medical bills and property repair bills if they are hit by an uninsured or hit-and-run driver. Uninsured motorist bodily injury and property damage is the valuable optional auto insurance coverage that will take the financial burden from the injured parties if they are hit by an uninsured or hit-and-run driver.

The Advantage of Full Coverage

Although California drivers only need to purchase liability insurance, this type of coverage will not pay their own property repair bills. If someone causes a collision, those with damages will file a claim for the at-fault driver’s liability insurance coverage. However, policyholders who caused the accident will not be able to file claims to have their own vehicles repaired.

Collision Coverage

Drivers can purchase collision coverage that will pay to repair the policyholder’s vehicle no matter who caused the collision. The policyholder will need to pay the deductible. After the deductible is paid, the auto insurance company will cover the rest of the repair bills. If the auto insurance company totals the vehicle, the policyholder will receive the fair market value for the car at the time of the accident.

Comprehensive Coverage

Auto insurance companies also include comprehensive coverage in their full coverage packages. Comprehensive coverage will pay to repair or replace the vehicle if it is damaged by something other than a collision. For example, if the vehicle is stolen and never recovered, the insurance company offers the policyholder the fair market value.

Medical Payments

Those who do not have adequate medical insurance that would pay for their medical treatment if they are injured in a crash may wish to add Medical Payments to their coverage. Medical Payments will pay the policyholders’ and their passengers’ medical expenses, and would be great coverage for those who drive with passengers who do not have health insurance.

I-car gold class Da-Les Auto Body is a ASE Certified Auto Body Shop