New Minimum State Requirements For Los Angeles Auto Insurance Quotes

By Lisa Olsen Posted in Car Insurance News

The state of California recently set forth a new set of laws that requires insurance companies to report privately owned and driven vehicles to the state electronically. All law enforcement agencies have access to this database. This program was intended to take uninsured motorists off the roads as well as providing financial responsibility for every driver and vehicle involved in a traffic incident, regardless of who is deemed at-fault.

What Has Changed For Los Angeles Auto Insurance Quotes

The California state minimum liability insurance requirements have not changed. The state still requires the bare minimum insurance policy to cover $15,000 in coverage per injury or death to a single person, $30,000 in coverage per injury or death of more than one person, and $5,000 in coverage for property damage. What has changed is the fact that the insurance company will electronically report this information to the DMV to verify coverage every time the vehicle is SMOG-ed and registered (which is every one to two years) or upon a transfer of ownership of the vehicle. If an insurance policy is canceled by either the insured or due to non-payment without a new policy being issued, the DMV is also notified so appropriate action may be taken which may include suspending or revoking registration.

What To Do Now

While it is still important to carry a proof of insurance card while driving, its validity can be electronically checked by any law enforcement agency. To avoid problems, never let an insurance policy lapse or be canceled for any reason as it is immediately reported to the DMV. If a driver is caught driving an uninsured vehicle, the vehicle can be impounded. If in an accident, the uninsured driver can be deemed personally liable for damages which can cause years of financial distress.

Related posts:

  1. New Minimum State Requirements For Los Angeles Car Insurance
  2. New Minimum State Requirements For Houston Auto Insurance Quotes
  3. New Minimum California State Requirements For San Jose Car Insurance
  4. New Minimum State Requirements For A New York Auto Insurance Quote
  5. New Minimum Arkansas State Requirements For Little Rock Car Insurance

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