Individuals who experience a motor vehicle accident in California typically need to make a claim with an insurance company to cover injury and/or damages. This is why, to protect everyone on the road, the state has minimum requirements for car insurance coverage. A vehicle can only be registered in the state if it meets these requirements. They are:
- At least $15,000 per person and $30,000 per accident in coverage for both bodily injury liability and uninsured motorist bodily injury
- At least $5,000 in coverage for property damage liability
- At least $3,500 in uninsured motorist property damage coverage
If the state of a California cannot verify that the minimum insurance requirements are met, a vehicle owner may receive an Intent to Suspend Registration letter. Sometimes, those who are insured will receive such a letter due to an error, such as the state having an incorrect vehicle information number (VIN) on file. Other times, the letter will come due to insurance lapsing or otherwise not being confirmed. It is important to have the minimum insurance coverage and to not let insurance coverage lapse, as this can have significant consequences including leaving one with limited options in the case of an accident.
In the case of an accident, the drivers’ insurance can help to pay for some of the damages. But, what happens when the accident-related losses and expenses exceed the insurance coverage? Or, what if one party does not have insurance as required? Another possible challenge can be an insurance company disputing a claim and not wanting to cover all damages from the collision. In these cases, recourse can be sought with the help of a California personal injury lawyer.