What Are The Uninsured Motorist Coverage Amounts In California?
Due To California’s Outdated Compulsory Financial Responsibility Law, the only protection you can have is having the right amount of uninsured motorist coverage.
According to the California DMV Driver Handbook, California’s Compulsory Financial Responsibility Law requires every driver and every owner of a motor vehicle to maintain financial responsibility (liability coverage) at all times. Finding out what the uninsured motorist coverage is can be difficult.
What Are The Four Forms Of Financial Responsibility?
There are four forms of financial responsibility a driver in CA must keep in mind:
- A motor vehicle liability insurance policy.
- A deposit of $35,000 with DMV.
- A surety bond for $35,000 obtained from a company licensed to do business in California.
- A DMV issued a self-insurance certificate.
In California, the minimum requirement of liability insurance is as follows:
- $15,000/person for bodily injury
- $30,000/accident for bodily injury
- $10,000/accident for property
If you were hit by an uninsured motorist, those limits will not suffice. For any questions always remember you can contact us at Krasney Law for any questions.
The Truth Behind Outdated Insurance Laws
When these laws were formed, the average price of a new car was $3,542.00 and medical costs were a fraction of what they are today in 2019. Back in the ’70s, California motorists were relatively well‐protected. About 40 years have passed since these laws were placed. Law changes take more than a lot to change, it’s no surprise that it has not been adjusted. Sadly, the current minimums are severely insufficient for people living in California. A CA motorist decides to opt-in for minimum coverage are put a giant disadvantage if they were to be hit. This will result in the victim receiving far less than they deserve for the damages. Any accident involving multiple cars or where more then one person is at fault will surpass the bodily injury limits.
How To Protect Yourself From California’s Outdated Compulsory Financial Responsibility Law
Protection from this only comes in one way at the moment. In order to protect yourself and your family from California’s outdated Compulsory Financial Responsibility Law is to purchase sufficient Uninsured Motorist coverage from a trusted car insurance company. This is the best and most important form of coverage to purchase in the state of California when it comes to uninsured motorist liability and car accidents.
The importance of having this should not be understated. The reason it is a game-changer is because it’ll take care of whatever damages that occur outside the outdated limits. Once the state of California and the auto insurance companies are up to date then you don’t have to worry about this type of insurance coverage, but until then this is the only way to truly “financially protect” yourself.
Important Things To Note About Uninsured Motorist Coverage In California
- The most important coverage you can buy to protect you and your family financially is uninsured motorist coverage.
- Under California law, the insurance company will not sell you more uninsured motorist coverage then you do off liability.
- Uninsured motorist coverage covers you anytime that a motor vehicle of any kind (street legal) comes in contact with you. Covers you also if you are a pedestrian.
- It covers you if you are a passenger in someone else’s vehicle.
- The cover extends to a resident family member is a passenger car. Examples could be when a child is traveling with someone to Disneyland or when you carpool with someone daily to work.
- There is no right of subrogation for underinsured motorists but there is for uninsured motorists.
California car accident lawyers at Krasney Law recommends that his clients, friends, family, and neighbors maintain Uninsured Motorist limits equal to their liability limits. Given how expensive things are in 2019 and the average pricing of auto-fixes, we recommend at the very minimum in all instances, $30,000/$60,000 is required when obtaining an uninsured motorist policy through your insurance company.
California Vehicle & Insurance Codes Updated for 2022
- California Vehicle Code § 17151 – Every owner of a motor vehicle is liable and responsible for death or injury to person or property resulting from a negligent or wrongful act or omission in the operation of the motor vehicle, in the business of the owner or otherwise, by any person using or operating the same with the permission, express or implied, of the owner.
- California Insurance Code §16056 – (a) No policy or bond shall be effective under Section 16054 unless issued by an insurance company or surety company admitted to do business in this state by the Insurance Commissioner, except as provided in subdivision (b) of this section, nor unless the policy or bond is subject, if the accident has resulted in bodily injury or death, to a limit, exclusive of interest and costs, of not less than fifteen thousand dollars ($15,000)…