California Auto Insurance Requirements

Rules, Requirements and laws vary from those in other states, and they are regulated by the state of California alone. California auto insurance requirements state that there are 3 mandated coverages that all California drivers must carry: Bodily Injury by Accident, Bodily Injury Liability per Person, and Property Damage Liability. Drivers may choose their own maximum payment amounts when buying a policy, but the state has set the minimum amounts of liability insurance as follows:

California Car Insurance Limits

Bodily Injury Liability is $30,000 per accident.
Bodily Injury Liability is $15,000 for each person.
Property Damage Liability Insurance $5,000 per accident.
These are the minimum requirements to safeguard the protection of third parties who may suffer losses and injuries related to a vehicle accident. It is the states duty to ensure that unsuspecting road users must be compensated should they get involved in vehicular incident. If you want to drive you must comply with these basic terms and buy a policy that includes these minimum covers.

Liability Is California’s Minimum Requirement

When other people are injured at a vehicular incident that you are at fault, then your bodily injury liability coverage kicks in. There will be a maximum set for paying each person who has been injured and a maximum set for the entire incident, so the company won’t pay more than that no matter how many people have been hurt. That leaves you with having to pay any excess.

When you have been found to be at fault and have caused damage to someone else’s car or assets property damage liability coverage pays for that. It can also cover property such as light poles, buildings, mailboxes, and so on. The insurer will only cover up to the limit per accident that has been set, but within that range there can also be money to pay legal fees. These are the minimum amount of coverage allowed by law.

Minimum Car Insurance Requirements Is Financial Protection

In order to have the best financial protection, it is important to increase insurance coverage to a higher amount than minimum automobile insurance required. Increased coverage entails higher premiums, but they are negligible when considering the out of pocket costs you may incur when you consider the cost of basic liabilities premium. To obtain a higher standard of insurance without raising costs, you should consider altering the policy deductibles. Generally in California, the higher the premium means a lower deductible and a low premium means a higher deductible. As long as you are able to manage a high deductible, liability premiums for increased coverage may be a better option and offers peace of mind.