Having liability car insurance in California is a must as outlined by the state’s Financial Responsibility Law that requires each owner of vehicles registered, driven and parked within the state must have financial responsibility to cover for damages and injuries caused by their vehicles regardless of who is at fault.
Financial responsibility for your vehicle’s operation is a must at all times. This is being checked and must be provided upon vehicle registration or renewal of registration, when your vehicle is involved in a traffic accident, or when law enforcement will request for proof
of evidence that you possess financial responsibility.
For private passenger vehicles in California, liability car insurance is set on the following minimum limits:
• Bodily Injury Liability – $15,000 per person, per accident; $30,000 for all persons per accident.
• Property Damage Liability – $5,000 per accident.
The minimum limit serve as the maximum amount your insurance company will pay for certain coverage. If the responsibility will exceed coverage limit, the policyholder then is obliged to pay for the difference. In this case, purchasing insurance coverage with higher limits will have you better protected. However, your insurance premium or the price you have to pay will also be more expensive.
In purchasing liability car insurance coverage, California car insurance providers will compensate on the expenses of the other party rather than the policyholder. Bodily Injury Liability insurance will cover the policyholder on claims with regards to injuries or death suffered by the other party involved in the incident while property damage liability will provide coverage on damages incurred by other party’s properties. These properties may not necessarily refer to the other party’s vehicle. It can also be an infrastructure such as walls, roads signs, or even houses that will be damage in the event of an accident.
The purpose of having liability car insurance is to safeguard the interest of both parties – the policyholder and the others involved. Not subjecting oneself to the Financial Responsibility Law by having liability car insurance in California is punishable by state laws. A person’s driving privileges may be suspended or they may be compelled to pay fines. But to note, liability insurance is to pay for the other parties, not to pay for the damages you incurred. If you want to have protection other than liability, you can also purchase particular insurance coverage that will cover the expenses for your injury and property damages.