In California, all insurance laws require any owner of an automobile in the state to possess auto liability coverage. A federal mandate was issued to require coverage. Each state has the right to modify the law according to their own stipulations. A local insurance provider can offer Automobile Insurance in Monterey to all automobile owners.
Standard Minimums Required by the State
As of today, the automobile owners need auto liability coverage that equates to $15,000 for single injury accidents. The maximum to cover all injuries in an auto accident is $30,000. The property damage coverage must be no less than $5,000. The state also requires owners to have uninsured motorist coverage. The values for the coverage are $15,000 for single injury accidents and $30,000 for multiple injuries in an accident. The uninsured property damage require is $3,500.
Assessments of Penalties for No Insurance
The automobile owners face penalties if the auto owner doesn’t have auto insurance coverage. The initial penalty for no insurance can range up to $500. The auto owner could acquire a license suspension and a denial of registration for their vehicle.
Notifications from the DMV
The Department of Motor Vehicles has a program set up to identify any automobile insurance coverage that is no longer valid. The system creates notifications for the auto owners automatically. The owners must provide the department with new proof of insurance coverage to update their files. If they fail, they are charged fees when they attempt to renew their registration.
Why Insurance is Required by the Federal Government
The federal government created the mandate for auto liability coverage to lower the potential for uninsured accidents. The accidents generate high costs for automobile owners each year. These accidents also lead to the potential of a lawsuit. By requiring auto liability coverage, the federal government is making an attempt to lower the financial burden after an accident.
In California, all insurance laws dictate a requirement for auto liability coverage. The state of California increases the standard minimum to include uninsured motorist coverage. Auto owners who need to acquire Automobile Insurance in Monterey visit us websitefor more info now.
