Be Sure to Insure as per California Auto Insurance Law

FOR IMMEDIATE RELEASE
Los Angeles, California, United States of America (Free-Press-Release.com) December 5, 2011 -- California Auto Insurance is one of the mandatory aspects for automobiles and it is regulated by Department of Motor Vehicles, California. In 2006, there were some modifications in the law to accommodate the current changed scenario and in order to make the law more effective.

These changes in the California Auto Insurance Law include:

Owning Liability Insurance – Every vehicle when hits the roads of California should hold a Liability Insurance which provides the financial responsibility in events of injury or damage caused due to traffic collision, no matter whose fault.

Reporting to DMV by Insurance Companies – All insurance companies are mandatorily required to electronically report all the vehicle insurance information of private – use vehicles to DMV. Whereas this electronically reporting is not required for vehicles covered under business or commercial insurance policies.

DMV has the authority to suspend any vehicle when it finds that any of the California Auto Insurance laws are not adhered to. This includes:

When a insurance policy is either cancelled or lapsed and is not replaced with a fresh policy within 45 days.

When there is initial registration or ownership transfer and insurance is done, the same is to be informed to DMV within 30 days. When it is not done there is a fair chance that the vehicle insurance can be suspended by DMV.

When it comes to the notice of DMV that false evidences have been provided to obtain the insurance DMV is sure to suspend the vehicle insurance.

Often it was noticed that some of these vehicle owners are unable to afford the cost of financial liability and get a California Auto Insurance Policy and adhere to the California Compulsory Financial Responsibility Law. As a solution for this, the legislature had passed the CLCA program (California Low Cost Automobile Program in 1999.

Under this program many of the automobile owners who could not afford the high cost financial responsibility insurance were benefitted and are now well covered under California Auto Insurance.

Qualification to get an auto insurance under the CLCA program are :

One should be at least 19 years of age and is having a good driving record.

Has a driving license to drive for three consecutive years,

Should own a vehicle whose cost should be $ 20,000 or lesser.

Meet the requirements set for income eligibility.

Under the CLCA program, each insurance policy gives liability coverage to the vehicle’s primary driver and secondary driver who is eligible for it.

There always arises a question on ‘What if I do not have a California Auto Insurance?’

The answer is simple but consequences are complicated.

The vehicle registration and driving license would be suspended.

The vehicle can be impounded at any moment.

One would be fined heavily.

When such vehicles meet with an accident, traffic collision, the owner of the vehicle has to take personal responsibility for all the damages.

Keeping all these in mind, to be on the safe and hassle free side make sure to insure before your vehicle hits the roads of California so that the ride is always smooth and enjoyable. For further inquiry people should visit http://www.onguardinsurance.com/ or call us at (213) 748-8999.

california auto insurance