Auto Insurance In California: What's The Minimum Legal Requirement?

California requires all drivers to have auto insurance or some form of financial responsibility before driving. The minimum insurance requirements in California are $15,000 in bodily injury liability coverage per person, $30,000 in bodily injury liability coverage per accident, and $5,000 in property damage coverage. California is a pure comparative negligence state, meaning that if you are found to be at least 1% at fault for an accident, you could be responsible for paying some or all of the medical and car repair bills for anyone else involved.

Minimum liability insurance requirements

In California, drivers are required to have auto insurance or some form of financial responsibility before driving. The state's minimum car insurance requirements include liability insurance, which covers injuries or damage caused by the policyholder in an accident. The minimum liability insurance requirements in California are:

• $15,000 for injury/death to one person
• $30,000 for injury/death to more than one person
• $5,000 for damage to property

These requirements can be met through a standard auto insurance policy or alternative forms of coverage, such as a cash deposit with the DMV, a DMV-issued self-insurance certificate, or a surety bond from a licensed company in California.

Liability insurance compensates a person other than the policyholder for personal injury or property damage resulting from an accident. It is important to note that these minimum requirements may not be sufficient to cover the full cost of medical expenses or damage to another vehicle in the event of an accident. Individuals may choose to purchase higher limits to fully protect their assets.

Evidence of insurance

In California, it is mandatory to carry evidence of insurance in your vehicle at all times. This is also referred to as financial responsibility. You must be able to provide this evidence when requested by law enforcement, when renewing your vehicle registration, or if your vehicle is involved in a traffic collision.

The types of acceptable insurance in California are:

• Motor vehicle liability insurance policy
• Cash deposit of $35,000 with the DMV
• DMV-issued self-insurance certificate
• Surety bond for $35,000 from a company licensed to do business in California

If you are unable to afford liability insurance, you may be eligible for the California Low-Cost Automobile Insurance Program.

The minimum liability insurance requirements in California are:

• $15,000 for injury/death to one person
• $30,000 for injury/death to more than one person
• $5,000 for damage to property

These minimum requirements are set to increase in January 2025, to:

• $30,000 for injury/death to one person
• $60,000 for injury/death to more than one person
• $15,000 for damage to property

Uninsured motorist coverage

In California, insurance, also referred to as "financial responsibility", is required for all vehicles operated or parked on roads. Uninsured motorist coverage is not mandatory, but it is a legal requirement for automobile insurance policies to offer it. If you choose not to purchase it, you must sign a waiver.

Underinsured motorist coverage (UIM) provides the same type of protection in cases where a driver does not have enough insurance to pay for all the damages sustained by the insured person. UIM coverage only comes into effect once you have made a claim and obtained the negligent driver's minimum coverage. If you have $30,000 of UIM coverage and the nature and extent of your injuries justify it, your claim against your own carrier would be for $15,000 (the minimum coverage from the underinsured driver, plus $15,000 from your own policy).

Uninsured motorist property damage coverage (UMPD) pays for the damage to your car from an accident with an uninsured driver who is at fault. The limit for this is $3,500 and the uninsured driver must be identified. You may not need this if you have collision coverage.

Collision coverage

In California, collision coverage is not required by state law. However, if you are leasing or financing your vehicle, your lender will likely require you to have collision coverage. This is to protect their investment.

If you own your vehicle outright, collision coverage is optional. Without it, you will need to pay for any repairs or replacements out of pocket if you are involved in an accident and are found at fault. If the other driver is at fault, their liability coverage will typically cover the cost of the damage.

When deciding whether to opt for collision coverage, consider the value of your vehicle and your ability to pay for repairs or a replacement out of pocket. If your vehicle is new or worth a significant amount, collision coverage can help with the cost of potentially expensive repairs or a replacement. Collision coverage may not be worth it if your vehicle is in storage for a long period and won't be driven.

In California, the minimum liability insurance requirements are $15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000 for damage to property. Collision coverage is separate from liability insurance and does not meet the minimum vehicle financial responsibility requirements.

Medical payments coverage

Med Pay covers reasonable and necessary medical bills, including ambulance and EMT fees, chiropractor or acupuncture bills, physical or occupational therapy, short- or long-term care, medical equipment, and dental work. It also covers funeral and burial expenses in the event of a fatal accident.

One of the advantages of Med Pay is that payments are made directly to healthcare providers, so you don't have to pay out of pocket and wait for reimbursement. There are no deductibles or copays with Med Pay, and it covers a wide range of providers, including doctors, hospitals, and alternative therapies like acupuncture and chiropractic treatment.

Med Pay can be especially useful if you have no health insurance, high deductibles, or copays on your existing health insurance policy. It also covers your passengers, regardless of whether they have their own health insurance. Additionally, Med Pay has no yearly cap on payments, which is beneficial if you have a yearly or lifetime limit on your health insurance.

While Med Pay covers medical expenses, it does not cover other costs associated with a car accident, such as vehicle repairs, lost wages, or pain and suffering. For those expenses, you would need to pursue a claim against the at-fault driver's auto liability insurance or your own insurance policy.

Frequently asked questions