Auto Owners Insurance: Licensed In California?

Auto insurance is a legal requirement for all vehicles operated or parked on California roads. Auto-Owners Insurance is a company that offers auto insurance coverage, among other types of insurance, and works with independent agents to provide local, personalized expertise. It is rated A++ (Superior) by AM Best Company for its financial stability. However, it is unclear if Auto-Owners Insurance is licensed in California.

Minimum liability insurance requirements

In California, drivers are required to carry auto insurance. The minimum liability insurance requirements in California are as follows:

• $15,000 for injury/death to one person
• $30,000 for injury/death to more than one person
• $5,000 for damage to property

These requirements are per California Insurance Code §11580.1b. Liability insurance compensates a person other than the policyholder for personal injury or property damage. It is important to note that comprehensive or collision insurance does not meet vehicle financial responsibility requirements.

In addition to the minimum liability insurance requirements, drivers in California are also required to carry uninsured motorist coverage. The minimum requirements for this coverage are:

• $15,000 per person / $30,000 per accident minimum for bodily injury
• $3,500 minimum for property damage

It is important to note that these are the minimum coverage requirements in California. Everyone's insurance needs are unique, and it is recommended to review your specific needs with an agent, broker, or insurance company.

Non-owner auto insurance

In California, drivers are required to carry auto insurance. However, this law also applies to drivers who don't own a vehicle. Non-owner auto insurance, also known as non-driver insurance, is a type of insurance coverage that protects drivers from liability for bodily injury and property damage in the event that they cause an accident while driving another person's vehicle. It acts as secondary coverage if the vehicle owner's insurance isn't sufficient to cover medical expenses and repair bills. This means that the policy on the vehicle will be used first, and then the non-owner policy will cover any remaining costs if the driver has more liability coverage than the owner.

The cost of non-owner auto insurance can range from $200 to $500 per year, depending on factors such as coverage limits, driving frequency, driving history, and location. This type of insurance is generally less expensive than standard car insurance policies because drivers without a vehicle tend to spend less time on the road and are less likely to file a claim. Non-owner policies also do not have a deductible.

There are several situations where purchasing non-owner auto insurance is beneficial:

• Reinstating a license after a major infraction: In California, if your driver's license is suspended due to a DUI or major traffic violation, you must file an SR-22 insurance certificate to get your license reinstated. If you don't own a vehicle, a non-owner auto insurance policy can fulfil this requirement.
• Frequent rental car usage: In California, car rental companies are not mandated to offer liability protection. If you frequently rent cars, purchasing a non-owner auto insurance policy can provide you with sufficient liability coverage at a more affordable cost than buying liability coverage from the rental company each time.
• Borrowing a vehicle from family or friends: While accidents in a borrowed vehicle are typically covered under the owner's auto insurance policy, the owner chooses the coverage limits. By purchasing your own non-owner policy, you can ensure you have adequate liability coverage.
• Temporary lack of a car: If you plan to purchase a vehicle soon but don't currently own one, non-owner auto insurance is a cost-effective way to maintain continuous coverage and long-term customer status with your insurance company. It also provides coverage when test-driving vehicles.

You can purchase a non-owner auto insurance policy from most national insurance companies, such as Allstate, GEICO, State Farm, Progressive, and Nationwide. This type of insurance is particularly useful if you drive regularly but don't own a car, providing you with liability coverage for bodily injury and property damage in case of an accident.

Insurance requirements for vehicle registration

In California, insurance, also known as financial responsibility, is required for all vehicles that are operated or parked on roads. This insurance must be provided when requested by law enforcement, when renewing vehicle registration, or when the vehicle is involved in a traffic collision. The minimum liability insurance requirements for private passenger vehicles in California are:

• $15,000 for injury/death to one person
• $30,000 for injury/death to more than one person
• $5,000 for damage to property

It is important to note that these requirements will increase effective January 1, 2025, to the following:

• $30,000 for injury/death to one person
• $60,000 for injury/death to more than one person
• $15,000 for damage to property

Liability insurance compensates a person other than the policyholder for personal injury or property damage. It is important to carry evidence of insurance in your vehicle at all times and to provide it when requested. Failure to provide proof of insurance when registering a vehicle may result in suspension of the vehicle's registration.

There are a few ways to demonstrate financial responsibility in California:

• Obtaining a motor vehicle liability insurance policy
• Making a cash deposit of $35,000 with the DMV
• Obtaining a DMV-issued self-insurance certificate
• Obtaining a surety bond for $35,000 from a company licensed to do business in California

It is worth noting that the minimum amount requirements for the cash deposit and surety bond will increase to $75,000 effective January 1, 2025.

If you are unable to afford liability insurance, you may be eligible for the California Low-Cost Automobile Insurance Program. This program helps income-eligible good drivers obtain insurance with lower liability limits than typically required by the state.

California Low Cost Automobile Insurance Program

California's Low Cost Automobile Insurance Program (CLCA) is a state-sponsored initiative that provides affordable auto insurance to eligible individuals. The program was established in 1999 by the Legislature under the California Insurance Code Section 11629.7. It aims to help income-eligible good drivers obtain liability insurance at reasonable rates, ensuring they can comply with California's financial responsibility laws.

The CLCA program is specifically designed for individuals who struggle to afford standard insurance premiums. While the coverage provided by CLCA is more limited than a typical insurance policy, it still meets the state's financial responsibility requirements. The base CLCA policy includes liability coverage with the following limits:

• $10,000 of bodily injury or death liability per person
• $20,000 of bodily injury or death liability per accident
• $3,000 of property damage liability per accident

It is important to note that CLCA policies do not include comprehensive or collision coverage. However, policyholders can choose to add medical payments coverage and uninsured motorist bodily injury protection for an additional cost of around $43 to $82 per year.

To be eligible for the CLCA program, individuals must meet certain criteria. They must have a valid California driver's license, own a vehicle worth $25,000 or less, and be at least 16 years old. Additionally, they must meet income eligibility requirements, which vary based on household size, and have a good driving record. A "good driver" is generally defined as someone with no more than one point on their driving record in the past three years and no at-fault accidents, felonies, or misdemeanors during this period.

The cost of the CLCA insurance program ranges from $198 to $802 per year, depending on factors such as age, county of residence, and driving experience. Drivers between 19 and 24 years old may be subject to a 30% surcharge, while teen drivers between 16 and 18 years old pay double the base price. The program offers seven payment plans, and there is no broker's fee.

The CLCA program is administered by the California Automobile Assigned Risk Plan (CAARP) and is overseen by the California Department of Insurance. Interested individuals can visit the CLCA website (www.mylowcostauto.com) or call 1-866-602-8861 to check their eligibility and locate a certified agent in their area.

Agent or broker license requirements

Auto-Owners Insurance is a well-known insurance provider in the United States, but is it licensed to operate in California? To answer this, let's first understand the role of insurance agents and brokers in California and the license requirements they need to fulfill.

Insurance agents and brokers play a crucial role in helping individuals and businesses navigate the complex world of insurance. In California, the Department of Insurance (CDI) regulates the insurance industry, including the licensing of agents and brokers. The requirements to obtain an agent or broker license in California are detailed and stringent, ensuring that insurance professionals operating in the state have the necessary knowledge and integrity to serve their clients effectively.

• Age and Residency: To apply for a license in California, individuals must be at least 18 years of age. While residency in California is not required to obtain a license, it is important to note that the licensing process and requirements may differ for non-residents.
• Pre-Licensing Education: All license applicants must complete a pre-licensing education course that is approved by the CDI. The number of hours required varies depending on the type of license being sought. For example, those seeking a Property & Casualty broker-agent license must complete 20 hours of pre-licensing education, while those seeking a Life-only agent license are required to complete 40 hours. These courses cover essential topics such as insurance principles, ethics, and California-specific laws and regulations.
• Examination: After completing the pre-licensing education, individuals must pass a state-administered license examination. The exam tests the applicant's knowledge of the content covered in the pre-licensing course, as well as their understanding of insurance practices and regulations. Passing the exam typically requires a score of 70% or higher, and individuals have 12 months from the date of their course completion to pass the exam.
• Background Check: As part of the licensing process, the CDI conducts a comprehensive background check on all applicants. This includes fingerprinting and a review of the individual's criminal history, if any. The background check ensures that licensed agents and brokers meet the standards of honesty and integrity required by the insurance industry.
• Application and Fees: Once all the above requirements are met, individuals can submit their license application to the CDI, along with the required fees. The application must be completed truthfully and accurately, disclosing any relevant information, including any criminal convictions or disciplinary actions. The fees associated with the license application cover the processing and administration of the license.
• Continuing Education: Maintaining a license in California requires ongoing continuing education. Licensed agents and brokers must complete a certain number of hours of approved continuing education courses periodically to stay updated with industry changes and maintain their expertise. These courses ensure that insurance professionals remain competent and informed throughout their careers.

By meeting these rigorous license requirements, insurance agents and brokers in California can provide reliable and trustworthy services to their clients. These standards ensure a strong understanding of insurance products, ethical practices, and compliance with state regulations, ultimately fostering a more secure and confident insurance environment for consumers.

Please note, the above information provides a comprehensive overview of agent and broker license requirements in California, but for the most up-to-date and specific guidelines, it is always advisable to refer to the California Department of Insurance.

Frequently asked questions