Mandatory auto insurance is woven into the fabric of California's Compulsory Financial Responsibility Law. Such a law compels both owners and operators of motor vehicles to assume fiscal responsibility for their actions. Can such a law sometimes be difficult to enforce? Absolutely. Particularly when an individual's destructive actions make for costly consequences.

Luckily, auto insurance makes it comparatively easy to follow this particular law. All states, including California, have statutory minimum liability insurance limits motor vehicle owners and operators must have. These limits constitute the absolute bare bones minimums of coverage for any motor vehicle driver living in the Golden State.

California Car Insurance Minimums

Each auto insurance policy must include at least $15,000 of coverage to insure against the death or injury of any person involved in a single accident. Each policy must also include $30,000 coverage to insure all individuals who are involved in a solitary accident. This part of the policy assures that anyone hurt in the accident will be compensated for any injuries or losses.

Property damage insurance coverage is equally essential when affected by an accident. With any luck, property damage is the only damage caused by an accident. California auto insurance policies require a minimum of $5,000 coverage against property damage for any single accident. This assures that up to $5,000 worth of repairs will be covered.

How to Achieve Financial Responsibility

California drivers are expected to carry leastwise the minimum liability insurance or choose a different approved method to pay off property damage and/or injury where an accident has occurred. The state has approved four ways for a driver to ensure such financial responsibility.

A licensed driver can deposit of $35,000 cash with the state's Department of Motor Vehicles. Such an approach is very expensive but it is one option. Another less expensive approach calls for a $35,000 surety bond issued to a company authorized to conduct business in the state.

A number of drivers prefer to be self insured especially if they own vehicle fleets totaling twenty-five or more. Such subjects require certification via the Department of Motor Vehicles bearing witness to their valid self-insured status.

Drivers can also opt to simply purchase the right amount of auto coverage instead. California auto insurance is the most cost effective means to establish fiscal responsibility within California.

Author: eric.weeks

About the author:
Eric Weeks, a former 15 year financial planning veteran, is one of the internet's leading experts on cheap California auto insurance and discount auto insurance since 1989. Visit these links to learn how you can get the best deal on California auto insurance.

Article source: Free Automotive Articles.