Shedding Light on the Car Insurance Requirements in Your State

There are many factors that go into the car insurance requirements in your state. These factors typically include population, number of auto accidents per year, cost of living, size, city life and so on. Although these factors certainly play a huge role in the overall auto insurance requirements for your state, there are other factors that could affect the final quote as well. For example, you should determine whether or not your state operates on a fault or no-fault policy. The difference is that a fault policy would compensate only the party victimized by the party "at fault." However, this assumes there is a person at fault in every accident, and tends to get complicated.

Alternatively, if your state car insurance requirements operate on a no-fault policy, then insurance benefits are compensated regardless of fault. Naturally, the no-fault policy tends to put insurance holders more at ease when on the road. Twelve U.S. states operate on no-fault car insurance requirements. These states include Florida, Michigan, New York, Pennsylvania, New Jersey, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah. Three of the states– New Jersey, Pennsylvania and Kentucky– offer residents a choice between fault and no-fault requirements. All the rest of the states not included in this twelve have fault requirements for auto insurance.

Although fault and no-fault may be broad categories, each state also has its own specialized car insurance requirements that vary from state to state. Since these specializations can be detailed and complex, you might want to discuss them with your insurance agent first. In the mean time, it’s always a good idea to research any specifications on your own and see how they compare to other states. Knowing this information will help you get the best deal out of your auto insurance and will help you make better choices in the future.

What are the laws concerning auto insurance in California?

Abide To The Auto Insurance RulesPeople who live in the state of California and want to drive are required to carry a certain minimum amount of California auto insurance. Like most of the country, California operates under a tort system, under which drivers are held responsible for bodily injury or property damage that they cause while operating a motor vehicle.

California requires anyone that operates a motor vehicle to be financially responsible for any bodily injury or property damage that may result from an accident that was determined to be their fault. Most people opt to purchase California car insurance, which will protect them in the event of an accident.

Minimum California Auto Insurance Requirements (15/30/5)

With this minimum amount of liability coverage, your insurance company will pay up to $15,000 for injuries sustained by an individual that suffers bodily injury as a result of your actions while driving a vehicle and up to $30,000 for all persons injured in a single accident that you were found to have caused. It will also pay out up to $5,000 for any property damage that was a result of the accident.

Other Ways to Insure

California has several other ways to prove financial responsibility and be allowed to legally drive a car. In lieu of a California car insurance policy, one may make a $35,000 cash deposit with the DMV and self-insure against a possible at-fault accident. Fleet owners of 25 or more vehicles may choose to set up a fund on their own instead of buying traditional California auto insurance. Upon sufficient proof that the fleet owner has set aside sufficient funds, the DMV will issue a certificate of self-insurance. Finally, an individual can obtain a $35,000 surety bond from a licensed California insurance company.