What Are The Minimum State California Auto Insurance Laws?

By Cathy Wilson Posted in Car Insurance News



Every state has mandatory minimums for car insurance. All states require a minimum of liability insurance on your vehicle. Liability insurance covers part of your financial responsibility to the other driver in an accident where you’re at fault. For example, if you rear-end someone your liability insurance will pay for the repair to their car and any personal injury to the other driver. Your liability insurance will not pay for the damage to your vehicle or any medical bills incurred by you or any of your passengers.

Liability is really intended to protect other driver sin an accident and does not protect you or your vehicle. Likewise, if you are in an accident which is not your fault or an accident where yours is the only vehicle involved, liability insurance will not cover any damage to your car or cover any of your medical bills.

California’s Minimum

The state of California requires a minimum of 15/30/5 for liability insurance. That means $15,000 for bodily injury (to the other driver), $30,000 total for an accident for bodily injury and $5,000 for property damage. California’s requirements are the some of the lowest in the country. This may sound great but consider if you were in a serious accident.

Let’s say that you accidentally run a red light and t-bone another car with three passengers. The driver of the other car breaks his arm and leg, the passenger in the front set has a head injury and a broken shoulder and the passenger in the back seat has only cuts and bruises but requires a visit to the hospital anyway. The total cost of the medial bills for the three people total over $75,000 but your insurance only covers $30,000. You would still be on the hook for the $45,000 not covered by your minimum liability insurance. Since the other driver’s $25,000 car is totaled but your insurance only covers $5,000 of that, you would still owe $20,000 on the car.

Minimums sound great but consider the cost of one major accident where you’re at fault.

Related posts:

  1. New Minimum State Requirements For A New York Auto Insurance Quote
  2. What Is The Minimum Amount Of Auto Insurance By State?
  3. New Minimum Arkansas State Requirements For Little Rock Car Insurance
  4. Which Parts Of A Car Insurance Policy Are Not Required By State Laws?
  5. What Are The Best Liability Coverage Limits?






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