California Auto Insurance Laws: What You Should Know

The world of auto insurance is much akin to taking the ACT, you have no idea what is involved before it happens and it still doesn't make sense when it is over! Auto insurance law can be very difficult to understand and follow for those who are in the field, which means it is even more difficult to the "average Joe". Since the final word in auto insurance law rests with the individual state this can make it even tougher, especially with those like California auto insurance laws.

We could spend days or months going over all of the particulars of California's auto insurance laws, but I think it would be more beneficial to hit a few of the high points. If your question is not answered here then be sure to visit the website for California's Department of Insurance.

Dual Consent to Record - If you call your auto insurance company or the company of the other party involved in an accident and they record your conversation without your consent they are breaking the law! It is okay to record conversations in California, but only if the representative gets your permission first.

Car Seats - If you are involved in an accident in California and you have a car seat in the vehicle at the time then you need to check with your insurance company to have the seat replaced. If the other party is at fault then their insurance should pay to replace your car seat, or at least reimburse you for the amount it would take to replace the seat with one of like quality.

Repair Bill of Rights - Gone are the days where you were required to take your vehicle to the body shop that the auto insurance company recommended. There are a few states that require the insurance company to send a "bill of rights" or "compliance" letter to every party who is repairing their vehicle and California is one of them. Long story short, you get to take your vehicle where you want to have it repaired, they can't demand you take it somewhere, though they can make recommendations.

Loss of Use Rental - If your vehicle does have to be repaired and is going to be in the shop for more than 4 hours then the insurance company must provide you a rental vehicle during this time. This is only if you are going under the other party's coverage or if you have rental coverage on your policy. One day of loss of use is categorized as 4 hours of labor.

Decision Timeline - California auto insurance law requires that the insurance company make a decision on a claim within 40 days or let all parties know that an extension is needed. After this time, the company must advise all parties every 30 days of the status of the claim.