Auto And Motorcycle Insurance Tips

Make use of the California Department of Motor Vehicles website.

To learn more about motor vehicle insurance laws, visit the California Department of Motor Vehicles and read “Important Facts About California’s Vehicle Responsibility Law.”

http://www.dmv.ca.gov/pubs/brochures/fast_facts/ffvr18.htm

California motorists/motorcyclists must carry proof of financial responsibility.

Changes that occurred with California’s 2006 Vehicle Financial Responsibility Law are intended to affirm that California drivers have the required liability insurance—and to take uninsured vehicles off the road. To help track motorists, California auto insurance companies are required by law to report information on private-use vehicle insurance directly to the Department of Motor Vehicles. Every vehicle operating or parked on California roadways must carry proof of financial responsibility at all times. (Usually, this proof comes from the insurance company, but California offers alternative financial responsibility options, such as surety bonds, self-insurance certificates, and cash deposits with the DMV.) 

Motorists must produce such proof when requested by law enforcement officers, when renewing registration, when the vehicle is involved in an accident, and in certain other circumstances. Failure to maintain financial responsibility may result in suspension of your registration, citations and fines, impoundment of your vehicle, and personal liability for damages caused to others.

California’s vehicle liability minimums are relatively low.

California’s liability requirement of 15/30/5 for automobiles and motorcycles ranks among the lowest  in the nation. Only three states have lower minimums, while two have the same. Many less densely populated states have minimum requirements of  25/50/10 or 25/50/25. Considering the population of the state, the busy freeways, and the large congested cities, the low minimum is surprising—and may be risky considering ever-rising medical costs and the large price tags on today’s automobiles and motorcycles.

Up to one-third of California drivers may not have enough liability insurance.

Never overestimate other people’s liability coverages. One of the significant challenges of California’s tort system is that the at-fault automobile driver, motorcycle operator, or boat owner pays for the medical and property damages to the injured party or parties in an accident. Although California has auto and motorcycle insurance minimum liability laws, a difficult-to-determine number of California’s automobile drivers take the legal risk and drive without insurance; others have inadequate coverage. Even the legal minimum coverages of 15/30/5 are low relative to today’s medical costs and property values.

In California, boat owners are not required by California law to carry any insurance. So, if you are the injured party and you do not have back-up insurance protection, you may find yourself paying for your own personal injuries and the damages to your vehicle out-of-pocket. It’s important to purchase Uninsured and Underinsured motorist, motorcyclist, and/or boat policies and it may also pay to explore the additional medical-payment policies such as MedPay. Consider the value of these protections and get at least some quotes that include them in order to evaluate the cost.

In California, earthquake insurance is not a luxury.

The frequency of earthquakes in California and the potential for an intense, damaging earthquake are so high that earthquake insurance in California is a necessity. Minor earthquakes occur almost constantly throughout the state, and many major earthquakes have caused significant damages throughout the history of the region; seismologists predict further seismic action in the coming years. Earthquake coverage, including damage from land movement and other adjuncts to earthquakes, is not part of normal home and business policies, for example.

But California insurance providers are required to offer earthquake insurance. Some companies have their own programs but many offer special insurance through the California Earthquake Authority (CEA). Comprehensive auto policies normally include earthquake damage, but make sure that your auto, motorcycle, boat, and other major possessions that could be damaged by an earthquake are protected by insurance.

Consolidate insurance providers when it benefits you.

You can often get discounts on your insurance rates if you insure your house and car, motorcycle, or boat with the same company. If you can get a good deal on the coverages you need, getting multiple insurance plans from the same company can result in big savings for you.