California Insurance Tips

Under California's Compulsory Financial Responsibility Law every driver and owner of a motor vehicle must meet the minimum amount of liability insurance coverage of 15/30/5, which is:

$15,000 for a single death or injury
$30,000 for death or injury to more than one person
$5,000 for property damage caused by one collision

The DMV will accept four different types of financial responsibility:

• Coverage by a motor vehicle or automobile liability insurance policy
• A deposit of $35,000 with the DMV (liability only)
• A surety bond for $35,000 obtained from a company licensed to do business in California (liability only)
• DMV-approved self-insurance: Government, state financial institutions, military etc..

At all times, you must carry in your vehicle evidence of the form of financial responsibility that covers your vehicle. In the event that you are involved in a collision CVC 16025 mandates that, "Every driver involved in the accident shall, unless rendered incapable, exchange with any other driver or property owner involved in the accident and present at the scene all of the following information:

1. Driver's name and current residence address, driver's license number, vehicle identification number, and current residence address of registered owner.

2. Evidence of financial responsibility is a form of insurance, then that person shall supply the name and address of the insurance company."

In addition to the above stated law, the DMV requires every applicant for vehicle registration renewal to submit along with their registration fees, proof of financial responsibility Remember, each of these new laws requires proof of at least the minimum amount of liability coverage, which amounts to $35,000 ($30,000 total injuries + $5,000 property damage). Your actual needs for insurance coverage may be much greater. Besides acquiring greater amounts of liability coverage, you may purchase other types of insurance coverage as well.

 

Licensing Measures

Many people think of driving as a right given to them by the Constitution. Although as an American, you have the right to own a car or motorcycle, you do not have the right to operate it on public roads. This is considered a privilege. In 1915, the state of California started issuing driver's licenses. When you receive a driver's license in California it means that you have met the basic standards for the understanding of vehicle law, and of operating a car. In order to drive in California you must possess a valid driver's license.

The Department of Motor Vehicles may refuse to issue or renew your driver's license if:

· You cannot demonstrate understanding of vehicle law (if you can't pass the driver license test). The DMV's testing procedures are consistently changed to keep pace with California's complex driving environment.

· You have lied on your application or renewal documents. Remember that making a false statement on a DMV document is a misdemeanor, and signing a false statement under penalty of perjury is a felony.

· You are addicted to alcohol or any other controlled substances.

· You are suffering from lapses of consciousness.

· You have been determined by the DMV to be a negligent operator. (We will discuss the negligent operator treatment system in a later section).

· You have any outstanding parking violations.

· You can't understand the simple English used in highway traffic and directional signs.

· You have visual acuity of 20/200 or worse. A person with 20/200 vision is usually considered legally blind.

When applying for an original driver's license you must present an acceptable birth date/legal presence document (such as a birth certificate) and provide your social security number.

Receiving a driver's license also means that you will consent to submit to a chemical test of your blood or breath when you are suspected of driving under the influence of alcohol. This is called Implied Consent (CVC23612). We will be discussing the details of implied consent later in this website.