According to the State of California statistics, there were 22,083,049 automobiles in the state in 2011. Since Los Angeles is the largest and the most populous city in California, it is home to a majority of these vehicles. While automobiles help transport millions of people each day, if precautions are not taken, they may also injure and kill many. Therefore the state has passed financial responsibility laws, which need to be followed if the automobile is to be registered and legally driven in California.
Financial responsibility laws are mandatory. They require that every driver and owner maintain a proof of financial responsibility at all times. The most convenient way of establishing such a proof is by purchasing minimum liability insurance coverage which covers the following per collision:
- $5,000 for property damage
- $15,000 for a single injury or death
- $30,000 for injury or death to more than one person
Before you buy a car, it is important that you check out the state’s and city’s auto insurance requirements. Los Angeles particularly requires that an insurance policy must be bought from a company which is authorized to do business in California. To check whether a particular insurance agent or company is licensed to do business in the state, people can call at 1-800-927-HELP.
Purchasing liability insurance policy, however, is not the only way of establishing the automobile’s owner and driver financial responsibility. The following three options are also available for automobile owners in Los Angeles:
- A self-insurance certificate issued by the DMV
- A surety bond for $35,000 obtained from a company licensed and authorized to do business in the state
- A deposit of $35,000 with the DMV
The mandatory financial responsibility laws in the state are strictly enforced. To have every automobile insured in the state, the state also offers California’s Low Cost Automobile Program (CLCA) which provides liability insurance coverage to those who meet a certain set of criteria. The program is primarily for low-income households which cannot afford liability insurance coverage from private insurance companies. If you believe you qualify and need to have your automobile insured, call CLCA at 1-866-602-8861, to explore your options.
Choose Your State
Q:While reading about car insurance in Los Angeles rules, I came across the minimum liability insurance coverage. Can you tell me what this is?
A:All vehicles in Los Angeles need to meet the minimum insurance requirements. Liability insurance is one of the most basic ways to demonstrate financial coverage. The minimum insurance coverage includes $5000 for property damage, $15,000 for injury of death, and $30,000 for injury to more than one person. It is best to check the insurance requirements of LA when purchasing a vehicle here.