With compulsory insurance in force there probably will develop an attitude in many people to make claims regardless of whether a person was in the right or wrong. In cases where it appears the motorist is not responsible for the accident, the claims will be resisted and many suits will be brought. Compare California auto insurance quotes online in seconds!
The cost of investigating the accidents and defending these suits will increase overhead expenses. For example, under compulsory automobile insurance proposals it will be possible for guests of a motorist or even the members of his family to bring suit upon the occurrence of an accident.
CA Auto Insurance Requirements – How Much Liability Insurance am I Required to Have?
If the motorist admits liability, regardless of actual fault, they might recover. The effect of compulsory automobile insurance upon dishonest claimants is a very important factor upon insurance rates. These people will know there is insurance money available, hence there will be an incentive for making false claims which will affect the rates. Looking for cheapest California automobile insurance premiums?
California Vehicle Insurance – Cheap Rates!
Find best California car insurance rates in seconds. Today the purpose of liability insurance is to protect the motorist in the event of claims arising from accidents for which he is responsible. There is a strong possibility compulsory automobile insurance will change this to protection of the public against motorists’ negligence. Obviously the restrictions formerly placed upon the motorist in the policy will not apply to the general public. If the motorist should violate any of these restrictions at present, the policy is void. This would not be true in reference to the public. Of course this change in bases is so broad it will necessarily increase the insurance costs.
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Why Compare Rates
Compulsory insurance will change the public attitude toward insurance. At present insurance is a voluntary undertaking and attracts, as a rule, the careful, the cautious and the financially responsible owner. The arrangement being of the owner’s making, he cooperates with his insurance carrier. Such a type of owner will continue to cooperate, even under compulsory insurance; but little cooperation can reasonably be expected of the reckless, the indifferent and the morally irresponsible who are forced to purchase insurance. Many of them may be open to suggestions for the promotion of excessive claims, even to the promotion of fake claims, to the end that they may benefit by the fund to which they have been compelled to contribute. To compare California auto insurance quotes and requirements, please enter your zip code into the search box above.Check License Status
California Insurance Code