Accident Auto Insurance: California

All 50 states in the U.S. require some form of auto insurance (also called accident auto insurance, motor insurance, or vehicle insurance), but different states have different minimum requirements and different penalties for failing to provide the minimum auto insurance coverage. It is important that you know your state's auto insurance minimum requirements and your options above and beyond what the state requires.

Types of auto insurance coverage:

Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.

Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.

Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.

Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).

California Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $15,000 for bodily injuries to and/or death of one person caused by an auto accident; $30,000 for bodily injuries to and/or death of all persons caused by an auto accident; $5,000 for property damages caused by an auto accident. Insurance policy must be obtained by a ligitimate auto insurance provider recognized by California. In the case of an auto lien (or car loan) more insurance will probably be required by the lienholder, as in other states, to cover the entire cost of the lien in addition to the state's minimum auto insurance requirements. In order to register or renew registration on a motor vehicle in California, you must show the DMV (Department of Motor Vehicles) proof of financial responsibility in one of four possible ways.

California's Proof of Auto Insurance (Financial Responsibility)
Show your liability insurance card.
Give the DMV a $35,000 cash deposit.
Show some kind of proof of a surety bond from a legitimate California company.
Get self-insurance certificate issued by the DMV.
If you drive a motor vehicle in California, you are required to carry proof of liability insurance with you in the car. If you are pulled over for any reason, the officer will ask you for your proof of insurance. In the event of an auto accident, California law requires you to show your proof of insurance to the other driver(s), regardless of who is at fault.
California Law Auto Insurance Penalties
If you do not produce your proof of insurance when asked to by the officer who pulled you over, you may be fined an amount not less than $500 in addition to possible court costs, and your vehicle is subject to being impounded. If you do not have valid insurance at the time that you are involved in an auto accident, your driver's license will be suspended.

California Auto Insurance Exceptions
Trailers, off-road vehicles, special equipment vehicles, and registered PNO (planned nonoperation) motor vehicles do not require auto insurance - check with the DMV.

As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marrital status, location, etc.