Federal or CA state law regarding required coverage for a financed vehicle?

Federal or CA state law regarding required coverage for a financed vehicle?

What type of insurance coverage is REQUIRED for my new financed motorcycle? Or where can i find out?


Find it from an auto insurance person.California Law requires all motor vehicle owners to have insurance which provides Bodily Injury Coverage and Property Damage Coverage.In the State of California the required minimum coverage for bodily injury is $15,000 per person injured in any one accident and $30,000 for all persons injured in any one accident.The required minimum coverage for property damage is $5,000 for injury to or the destruction of property of others in any one accident.Optional insurance may include Uninsured Motorist Coverage. If the policy holder makes this choice, the actual coverage purchased must be at least the amount of the required Bodily Injury Coverage. If the policy holder purchases more than the required amount of Bodily Injury Coverage, Underinsured Motorist Coverage may then be purchased in a lesser amount. The State of California does not require insurance companies to provide Uninsured Motorist Coverage in any amount greater than $30,000 per personal injury in any one accident and $60,000 for all persons involved in any one accident.As well, if Uninsured Motorist Coverage is purchased, then the policy must also include Underinsured Motorist Coverage. California requires insurance companies to offer for purchase Underinsured Motorist Coverage in an amount equal to that purchased for Uninsured Motorist Coverage. Insurers may, however, offer a greater amount of Underinsured Motorist Coverage than the Uninsured Motorist Coverage actually purchased by the policy holder.California requires liability limits of 12/30/5 which represent $20,000 for bodily injury coverage per person and $30,000 for bodily injury coverage per accident which will pay for medical bills and lost wages. The last number of 5 represents $5,000 for property damage coverage per accident which will pay for repairs and/or replacement of objects damaged or destroyed other than the policy holder’s own vehicle.Personal Injury Protection (PIP) and No-Fault Coverage are not required by the state.Adding Collision Coverage as well as Comprehensive Coverage to an insurance policy is optional as well in California.Source(s):http://ezinearticles.com/?California-Car…http://www.google.com/search?hl=en&q=aut…


Actually, the requirements are laid out by the finance company and proof often has to to be provided before the funds are advanced. Bottom line is, you cannot finance a vehicle with a licenced lender unless you have collision and comprehensive coverages. It isn't a law it is a contract requirement.Your Uncle Joe may loan you the money without proof, because he may not think of it, but CitiBank sure as heck won't.Now the basic liability coverages are laid out by law, and a person is an idiot if he only carries the minimum, but the liability coverage protects people and property you damage, not the vehicle you are making payments on.


You find that out from the company that financed your vehicle. They are the ones setting regulations on it. Generally they want to be named as payee, and you to have full coverage.


CA requires you carry liability insurance of 15/30/5. Your contract with the finance company requires you carry comp & collision. Read your contract for the specifics on the deductible or call your finance company.



Popular Q&A

Is allstate insurance company good for auto insurance?
I switched from State Farm a few months ago, they always had random rate hikes and I just couldn't take it anymore. I switched to Nationwide and I LOVE them, my agent is amazing, my rates are lower, and every 6 months he calls and asks what's new in my life to try and lower my rates even more...

Can you switch car insurance companies easily?
Actually, why you are asking here - not your company? One call and exact answer seems more simple then a message here, with average advices.'Switching' is simple operation and does not require much effort. In any case you have to contact the company that you have already signed to. Look through...

I don't own a car. Am I still required to show proof of insurance in order to reinstate a suspended license?
yes you can obtain insurance w/o a car. Due to the accident w/o insurance you need to file an SR22 with the state and there are whats known as "non-owners policies". These are policies for people like you who need insurance to keep their license but do not own a car. Any insurance agent...

How do automobile insurance companies get their ratings?
There are several companies that rate the insurance companies. We go with A. M. Best's ratings. The look various items that say how well the company is doing and how likely they are going to have the money to pay claims. A lower rated company does not have as much money, so in the event...

Should I pay for Insurance or just wait it out?
Oh but for the Smartphone in your hands. If just for that. It is my theory that Smartphones are making their users slow in the brain. Look, grab a drink and sit. Let us chat. You are eighteen. You thought you knew how to drive. Life's reality factor has showered its heavy water upon your head...