California Auto Insurance

Before you start looking for California auto insurance, it’s important to know what’s required as a motor vehicle owner.  Though California does not have extensive insurance requirements, you still need to meet those minimums before you get behind the wheel.

Only two types of insurance are required to own and operate a car according to the California Department of Insurance.  The first is bodily injury liability insurance, which covers things like medical expenses and lost wages for someone who gets hurt or killed in an accident that your vehicle is responsible for.  It does not cover someone in your vehicle who gets hurt.  California requires a minimum of $15,000 in coverage for one person in a single accident, and $30,000 for all persons in a single accident.  You’ll see this listed in your policy as $15,000/$30,000. 

The second requirement is $5000 in property liability coverage.  This would pay for the damage caused by your vehicle to property belonging to someone else, whether that’s another car, a motorcycle, a trailer, etc.  It does not pay to repair your car.

Both of the minimums California requires are extremely low.  We’ve already talked about how much a low-speed fender bender can cost to repair – $5,000 won’t go far.  If someone ends up in the hospital, think how quickly the bill could exceed $15,000.  Since the amount of insurance purchased is the maximum amount your insurance company will pay in case of an accident, you would be personally responsible for any extra costs.  Therefore, it is strongly recommended that you purchase much more than the minimum amounts; even though it will add to the cost of your insurance, it will help keep you safe from things like losing your house to pay medical bills.

California does not require that you purchase things like collision, comprehensive, uninsured/underinsured motorist or medical payment coverage, but these are all still important to include as part of your California car insurance policy.

You can’t register or renew registration on a vehicle without proof of insurance, or even get your car inspected.  In fact you are expected to obtain insurance prior to taking possession of a car. And if you get stopped by a police officer or get in an accident, you better have proof of California auto insurance as well.