How do you self insure your car?
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Asked January 18, 2017
The law in California mandates everyone to maintain financial responsibility in case of an accident. Failure or inability to maintain financial responsibility can attract serious penalties, including vehicle registration suspension, traffic ticket and vehicle confiscation. If you own or drive a car in the state of California, there are four ways to do this. First, you can purchase a motor vehicle insurance policy, make a deposit of $35,000 to the Department of Motor Vehicle (DMV) and take $35,000 worth of surety bond from a corporation licensed to operate in California. The last strategy is participating in a self insurance that is approved by the Department of Motor Vehicle.
The state of California DMV can issue a certificate of self insurance to various qualified applicants, including those with a fleet of over 25 vehicles. The party must have the vehicle registered in their name and should be able to make the necessary payments in case a ruling or judgment goes against you or your company. Before the registration is issued, the DMV may request you to provide a document showing proof of financial ability such as a bank statement. The document showing proof of self insurance should be presented when the vehicle is involved in an accident, when renewing the vehicle registration or when requested by the law enforcement.
Answered January 21, 2017 by teddyx