California Auto Insurance Key Terms

Learn key terms to find out what California auto insurance is all about

If you drive or own a motor vehicle in California, you're required by state law to purchase auto insurance. Not only individual residents but California businesses that employ drivers profit when they get the most insurance coverage at the lowest rates. Purchasing auto insurance in any state can be a challenge, especially if you're not familiar with essential facts, such as state insurance requirements. Learning key terms related to California auto insurance can help you make the right purchase.

 

Compulsory Financial Responsibility Law

According to the state's Compulsory Financial Responsibility Law, all drivers in California must purchase auto insurance that covers liability.
Try: Go to CNIC Net to find out the statutory limits for bodily injury and property damage liability insurance you'll need if you drive or own a motor vehicle in California.

Standard auto policy

Most states that require auto insurance offer consumers the choice between a basic and a standard auto policy.
Try: Tegner Miller identifies the main components of a standard auto policy in California. It also explains what is covered by the bodily injury and property damage provisions of the policy.

Comprehensive coverage

As in most states, comprehensive coverage on your California auto insurance policy is optional.
Try: Check out Esurance's discussion of comprehensive coverage in California so that you'll know the five main items this type of insurance covers and also whether comprehensive coverage is right for you.

Tort system

Under California's tort system, in order to recover monetary and non monetary damages resulting from an auto accident, you must prove that the other party is at fault.
Try: Find out what kinds of coverage is available in California's tort system and how this system differs from the no-fault system available in other states on the Allchoice Insurance website.

Uninsured motorist protection

California residents may purchase uninsured motorist protection so that their insurance company will cover their costs resulting from an accident with a driver who does not own insurance.
Try: California attorney Reuben J. Donig discusses the importance of uninsured motorist protection to California residents. Find out how this coverage protects you and which members of your household are covered.

Consumer rights

Since 1988, purchasers of California drivers have benefited from mandatory consumer protections when they buy and own automobile insurance in that state.
Try: The California Car Insurance Guide spells out the consumer right and protections built into the system. Scroll down on this page to learn about the Good Driver Provision and the Cancellation/Nonrenewal Provisions that prohibit insurers from denying coverage to good drivers and require insurers to notify you in advance if they decide to cancel your policy.

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