It is no secret that every California motorist must demonstrate financial responsibility for road and highway accidents through automobile insurance. California follows a “fault” system to decide liability for motor vehicle accidents, meaning that drivers are financially responsible for the results of any accident they may cause.
California law states, “All drivers and all owners of a motor vehicle shall at all times be able to establish financial responsibility and shall at all times carry in the vehicle evidence of the form of financial responsibility in effect for the vehicle.”
Insurance companies in California are required by California Vehicle Code §16058 to electronically report private-use vehicle insurance information to the California Department of Motor Vehicles (DMV). California motorists who do not have auto liability insurance may be fined, have their license suspended, and their vehicle impounded.
There are four ways that motorists in California may demonstrate financial responsibility with the following acceptable types of insurance:
- Motor vehicle liability insurance policy.
- A cash deposit of $35,000 with the DMV.
- DMV-issued self-insurance certificate.
- Surety bond for $35,000 from a company licensed to do business in California.
An auto insurance policy is a contract between a driver and his or her insurance company that explains:
- Costs.
- Coverages—the different circumstances the policy covers.
- Exclusions—the circumstances to which the policy does not apply.
California drivers must carry evidence of insurance in their vehicle at all times and they must provide it when:
- Requested by law enforcement.
- Renewing the vehicle’s registration.
- The vehicle is involved in a traffic accident or collision.
Here are the minimum liability insurance requirements according to California law. California Insurance Code §11580.1b:
- $15,000 for injury/death to one person.
- $30,000 for injury/death to more than one person.
- $5,000 for damage to property.
Liability insurance compensates a person other than the policyholder for personal injury or property damage. Comprehensive or collision insurance does not meet vehicle financial responsibility requirements.
For ten years, Martin Gasparian, Esq., the managing attorney of Maison Law, represented large corporations, all over the world in New York, Washington DC, Hong Kong, and Los Angeles. This experience working for big businesses and large corporations helped Martin Gasparian develop a keen sense of protecting the rights and interests of real people. Martin Gasparian helps his personal injury clients stand up against major insurance companies and receive the compensation they deserve.
Any resident of the Central Valley who has suffered a major loss from accident, theft, fire, or some other calamity, may depend on Maison Law for the highest level of legal service in the Fresno and Visalia areas. Maison Law is located on W. Main Street in Visalia, about 50 minutes from the Fresno Yosemite International Airport (FAT). Pick up the phone (24 hours a day, 7 days a week and speak with a Maison Law representative. Our Central Valley personal injury attorney is here to help you! Call Maison Law at (559) 203-3333.
