Financial Responsibility Law?
Reader’s Question:
What does financial responsibility law mean?
James
Birmingham, AL
A “financial responsibility” law means that you are required by the state to show proof that you have the ability to pay for the accident or damages caused by an accident or if you have been convicted of traffic infraction.
The financial responsibility law will not require a person to acquire insurance or any type of financial responsibility during your registration of your car.
If you get involved in an accident or convicted of traffic violation and you fail to demonstrate the required level of financial responsibility, your drivers license may be suspended or your car registration may be revoked.
The financial responsibility law requirements is not based on faults. In the event of an accident, all drivers involved in the accident must show proof of financial responsibility. If they fail to show proof of financial responsibility, this may result harsh penalties.
Getting car insurance policy is the most common way to adhere to this financial responsibility law.
Auto Insurance for College Students Out Of State?
Reader’s Question:
I am an 18-year-old California resident who has a vehicle registered here, but I will be attending college in Hawaii. Do I have to obtain a California automobile insurance for my car? Obviously, I won’t be bringing my car to college.
Kelly
San Jose, CA
Kelly, it’s too bad you can’t drive your car all the way to Hawaii . Yes, you do have to have to obtain a California automobile insurance even if you are not using it most of the time. Under the Compulsory Financial Responsibility Law in your state, vehicle owners have a financial responsibility to face if an accident wherein an injury or death arises (which is around $15,000; it can climb up to $30,000 if many are injured because of that mishap). Nonconformity with this law would result in very severe punishment.
By the way, all insurance companies in California are obligated to give reports for all automobiles to the Department of Motor Vehicles, which can be accessed by state personnel, whether they are from the court or from law enforcement. So it’s very easy for the state to know whether you’ve obtained insurance for your car or not.
There is really no choice. Maybe it would help if you know the factors that go into the price of auto insurance in California. Being 18 won’t help lower the cost. Teen drivers generally have higher premiums. Gender (I’m not sure if you’re a girl or boy because of your name) and academic performance (having A’s or B’s) will matter for most auto insurance companies.
Since you are a college student, I’m assuming you will be leaving the car under the care of your parents or guardian. A better idea would be to insure the car under your parent’s or guardian’s name. Hopefully, that would make auto insurance for your car more affordable.
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