California Car Insurance Requirements

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California is one of the many states that require drivers to carry car insurance. The state has set minimum requirements for car insurance coverage that every driver should meet. If you are planning on driving in California, you must have car insurance that satisfies the state’s minimum liability insurance requirements.

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What Is Liability Car Insurance?

Liability car insurance is the most basic type of car insurance coverage. It covers damages that you may cause to other people’s property or a person’s body if you cause an accident. Liability coverage does not cover your own injuries or damages to your own car.

In California, the state law requires that every driver must have liability insurance coverage with the following minimum limits:

Coverage type
Minimum coverage limit
Bodily injury liability per person
$15,000
Bodily injury liability per accident
$30,000
Property damage liability
$5,000

Bodily Injury Liability Coverage

Bodily Injury Liability coverage pays for the injuries that you may cause to another person in an auto accident. California requires you to have a minimum of $15,000 per person and $30,000 per accident of bodily injury liability coverage.

For example, if you are responsible for an accident that causes injuries to another driver, your bodily injury coverage will pay up to $15,000 per person or $30,000 per accident, regardless of how many people were injured. If the damages exceed your policy limits, you will be personally responsible for paying the difference.

Property Damage Liability Coverage

Property damage liability coverage pays for the damages that you may cause to another person’s property, such as their car or their fence. California requires you to have a minimum of $5,000 in property damage liability coverage.

If you are responsible for an accident that damages another person’s car or property, your property damage liability coverage will pay up to $5,000 for their repairs or replacement. If the damages exceed your policy limits, you will be personally responsible for paying the difference.

Other Car Insurance Coverage

While California requires drivers to have liability insurance, it is also a good idea to consider additional types of car insurance coverage. Optional types of coverage include:

Collision Coverage

Collision coverage pays for the damages to your car if you are involved in an accident, regardless of who is at fault. This type of coverage is optional in California, but may be required if you have a car loan or lease.

Comprehensive Coverage

Comprehensive coverage pays for damages to your car that are caused by non-collision events, such as theft, vandalism, or natural disasters. This type of coverage is also optional in California.

Uninsured/Underinsured Motorist Coverage

If you are involved in an accident with an uninsured or underinsured driver, this coverage will pay for damages to your car or injuries that you sustain. This type of coverage is optional in California, but may be worth considering if you frequently drive in areas with a high number of uninsured drivers.

FAQ

Do I need car insurance if I don’t own a car in California?

No, you do not need car insurance if you do not own a car in California. However, if you plan on driving someone else’s car, you may need to be listed as a driver on their car insurance policy.

How can I find the best car insurance rates in California?

You can find the best car insurance rates in California by shopping around and comparing quotes from different insurance companies. Be sure to check for discounts, such as multi-car discounts or safe driver discounts, that may be available to you.

What happens if I do not have car insurance in California?

If you are caught driving without car insurance in California, you may face fines or have your license suspended. In addition, if you are involved in an accident and do not have insurance, you may be held personally responsible for paying for damages or injuries that you caused.

What should I do if I am involved in a car accident in California?

If you are involved in a car accident in California, you should exchange information with the other driver(s), take photos of the damage, and contact your insurance company as soon as possible. You should also seek medical attention if you or anyone else is injured.

Can my car insurance policy be cancelled in California?

Yes, your car insurance policy can be cancelled in California for various reasons, such as non-payment of premiums or filing too many claims. If your policy is cancelled, you will need to find a new car insurance policy to maintain coverage.

Overall, it is important to carry the required minimum car insurance coverage in California to avoid penalties, fines and protect yourself financially in case of an accident. You can choose to add more coverage to your policy to provide further protection for yourself and your car.

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