California has an at-fault insurance system, which means that in an accident, the at-fault party is responsible for the other party’s property damages and bodily injuries. Since California has pure comparative negligence laws, victims can recover money for injuries no matter how negligent they were in the accident.
Purchasing a personal car insurance policy is one way to satisfy the state’s financial responsibility laws. Here are two other options:
- Deposit $35,000 with the DMV to receive a self-insurance certificate.
- Attain a surety bond for $35,000 from a company licensed to conduct business in California.
If you don’t have $35,000 readily available, it’s best to purchase a standard car insurance policy.
If you have poor credit, does that mean higher insurance rates? In California, the answer is no because of Proposition 103, which was passed in 1988. Companies are legally barred from taking credit scores into account when determining car insurance prices, so you won’t be penalized for having bad credit.