California State Auto Insurance

State Auto InsuranceUS states are governed by certain legislations to include state auto insurance. Each state has its own minimum requirement for property and bodily injuries but not all cover financial responsibility.

Like in the state of California, the Financial Responsibility law states that insurance policy claims must be complied in several ways. If you are a vehicle owner, you can obtain a surety bond of $35,000 or get a state auto insurance policy from a licensed insurer. Or you can make a cash deposit of $35,000 with the Department of Vehicles (DMV).

The state’s minimum limits of liability is $15,000 for bodily injury to one person; $30,000 for bodily injury to two or more individuals; and $5,000 for property damage. Drivers should be aware that this covers injuries and property damage not sustained by the policyholder.

State auto insurance must be purchased to comply with the requirements of the land. But not many realize that California has one of the lowest requirements for liabilities. Buying these low limits usually results to having these motorists shoulder the remaining cost of damages that are in excess of what is covered in the policy. This can surely create a dilemma and should never be the case.

Experts advise motorists to buy policies within the limits of $50,000 to a hundred thousand to easily catch up on the financial dilemmas should a third party be seriously injured or for any indemnities owed by the policyholder.

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