California Minimum Insurance Requirements

California Auto Insurance Laws and Regulations

1. Minimum Liability Coverage

In California, auto insurance is mandatory for all drivers. Here are the key points you need to know:

Minimum Liability Coverage:
- Bodily Injury Per Person: $15,000
- Bodily Injury Per Accident: $30,000
- Property Damage Per Accident: $5,000

These limits represent the state-mandated minimums. If you finance or lease your vehicle, additional requirements may apply from your lender or leasing company. This often takes the form of physical damage coverage, commonly referred to as “full coverage” 1.

2. Liability Coverage in California

California law requires all drivers to carry liability coverage. Here’s what it covers:

Bodily Injuries: If you cause an accident, liability coverage pays for injuries to others, including lost wages and pain and suffering.
Property Damage: It also covers damage to another person’s property caused by you.

However, it’s essential to note that your own liability coverage does not pay for your injuries or your vehicle’s damages. The minimum required coverage in California is listed as 15/30/5, which means:

$15,000 per person for bodily injury.
$30,000 per accident for bodily injury (if multiple people are hurt).
$5,000 for property damage 1.

3. Are California’s Minimums Enough?

California’s car insurance requirements are relatively lower than in many other states. Carrying only the bare minimum coverage may not fully protect you. Consider this:

Emergency Medical Costs: Even light to moderate injuries can quickly drain the $30,000 bodily injury limit.
Property Damage: The $5,000 property damage limit is minimal compared to the cost of an average new vehicle.

For comprehensive protection, it’s wise to consider additional coverages beyond the state minimums. These could include collision coverage, comprehensive coverage, and uninsured/underinsured motorist coverage 1.

Additional Resources

For more detailed information, explore these official sources:

Remember to consult a licensed insurance agent to tailor your coverage to your specific needs. Safe travels on California roads! 🛣️🌟

In California, drivers are required to maintain a minimum amount of liability insurance. Specifically, an auto policy needs to have at least: $15,000 in bodily injury liability per person, $30,000 in bodily injury liability per accident, and $5,000 in property damage liability per accident1. Bodily injury liability insurance pays for the other party’s medical expenses if the accident is deemed your fault. In California, you’ll need bodily injury coverage of at least $15,000 per person and $30,000 per accident1.

California law requires that uninsured motorist bodily injury and underinsured motorist bodily injury coverages must be offered with every auto insurance policy issued in the state. Policyholders must sign a special waiver to remove these coverages from their insurance. UMC/UIM coverage pays when another driver is at fault but either has no insurance at all or does not carry enough insurance to cover your medical bills and other losses. According to the California Department of Insurance, uninsured motorist bodily injury limits are equal to your liability coverage limits2.

Uninsured motorist property damage coverage in California offers up to $3,500 to cover vehicle damages due to an accident with another driver who is at-fault and doesn’t have insurance3.

Collision and comprehensive coverage are generally optional in California. An exception is a vehicle that is financed. Lenders will usually require that the purchaser or lessee carry collision coverage during the term of the loan or lease. Otherwise, the decision whether to purchase collision and/or comprehensive coverage is personal4.

The average car insurance cost in California is $2,115 per year, based on Insure.com’s analysis. In California, the average premium for car insurance is $176 per month. Progressive has the cheapest car insurance rates in California, at an average annual rate of $1,466 a year5.

Here are four auto insurance agents in Sacramento, CA:

Monique Ambers - State Farm Insurance Agent1
Farmers Insurance - Ken Smalley2
Nationwide Insurance Agents3
Farmers® Insurance Agents4

Here are the hyperlinks to the websites of some important institutions in Sacramento, CA:

City Hall: Sacramento City Hall
Better Business Bureau (BBB): BBB of Northeast California
Chamber of Commerce: Sacramento Metro Chamber
Police Department: Sacramento Police Department
Fire Department: Sacramento Fire Department
Hospital: Mercy General Hospital