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Insurance requirements in California

It is a fact in life that accidents happen. No matter how careful individuals are, sometimes mistakes just occur. When a mistake occurs while a person is driving, it can be very costly for both the driver who makes the mistake and for any accident victims. In order to reduce the overall cost of the accident to individuals, auto insurance has been created. Insurance helps individuals pay for the costs associated with a car accident.

Car insurance is so important that California law has made it mandatory. Individuals in California must be held financially responsible for any potential accident by purchasing auto insurance.

Specifically, California law requires all drivers to hold car insurance in order to establish financial responsibility for any potential accident caused by the driver. Additionally, California law requires all car owners to also hold insurance in order to pay for any financial responsibilities that arise from that vehicle.

In order to meet these financial responsibilities, California law crreates minimums for coverage in auto insurance policies. Under the state minimums, an insurance policy's liability limits must include up to $15,000 for the death or injury of one person. The minimum policy must also cover a total of $30,000 for injuries or deaths to more than one person. The insurance policy must also cover property damage of at least $5,000 to the property of other people.

If individuals choose not to purchase auto insurance, then the individuals can face serious penalties under the law. These penalties include a driver's license suspension, vehicle impoundment and fines.

It is extremely important for all individuals who drive their own vehicle in California to hold car insurance. However, not every driver takes this responsibility seriously. Therefore, underinsured and uninsured drivers frequently hit California roads. These drivers still cause car accidents which can lead to serious financial costs for accident victims. Accident victims in that situation should understand their legal rights. An attorney can help to explain these rights in an uninsured/underinsured motorist accidents.

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