California's Auto Insurance: Minimum Coverage And Cost

California requires drivers to have a minimum level of auto insurance. The state operates on a fault-based system, so drivers may opt for higher coverage limits to protect against potential financial liability from an accident they may cause. The minimum coverage requirements in California are $15,000 in bodily injury liability per person, $30,000 per accident, and $5,000 in property damage liability per accident. These requirements have remained unchanged for over 50 years, but a bill was recently passed to increase the minimum liability insurance requirements from 2025.

Bodily injury liability coverage

In California, drivers are legally required to carry a minimum amount of car insurance. This includes Bodily Injury Liability Coverage, which is a standard feature of your auto policy. This type of insurance covers the costs of injuries to others if you are at fault for an accident. It can also help pay for legal fees if you are sued for damages.

The minimum limits for Bodily Injury Coverage in California are $15,000 per person and $30,000 per accident. This means that if you are found to be at fault for an accident, your insurance will cover the medical expenses of those injured, up to $15,000 per person, and a total of $30,000 for all injuries in a single accident. This coverage can also include payment for emergency care services, ongoing care costs, and funeral costs in the unfortunate event that an accident results in a fatality.

While the minimum coverage is a legal requirement in California, it is often not enough to fully protect you financially if you are at fault in a serious accident. In such cases, you may be responsible for paying any medical and repair bills that exceed the coverage limit out of your own pocket. Therefore, it is generally recommended that you purchase as much coverage as you can afford to adequately protect yourself and your assets.

It is important to note that Bodily Injury Coverage will not pay for any repairs or property damage, including damage to your own vehicle. Additionally, it will not cover your own medical expenses as the driver at fault. To protect yourself in these cases, you may consider adding other types of coverage to your policy, such as Collision Coverage, Comprehensive Coverage, or Medical Payments Coverage.

Property damage liability coverage

The minimum limit for Property Damage Liability Coverage in California is $5,000 per accident. However, it is important to note that this amount may not be sufficient to cover all the costs of an accident. If the cost of damages exceeds the amount of your coverage, you will be responsible for the remaining cost. Therefore, it is recommended to purchase more than the minimum coverage if you can afford it.

When deciding on the amount of Property Damage Liability Coverage to purchase, consider factors such as whether you own a home or other expensive items, whether you travel in high-traffic areas, and whether there are a lot of expensive vehicles in your area. If you answered "yes" to any of these questions, you may want to consider raising your coverage amount.

Additionally, it is worth noting that liability coverage does not cover damage to your own car or your own medical bills. For that, you would need to purchase additional insurance such as collision coverage or comprehensive coverage.

Uninsured motorist bodily injury coverage

In California, UMBI is a mandatory part of your car insurance policy unless you sign a written waiver. It is included in your auto insurance policy unless you specifically choose to waive it. This coverage is essential as it ensures that you can receive compensation for your injuries even if the at-fault driver cannot pay you directly.

The minimum limits for UMBI coverage in California are $15,000 per person and $30,000 per accident. However, it is recommended that you purchase higher limits if you can afford to. A policy with limits of $100,000 per person and $300,000 per accident, or even higher, will provide more comprehensive protection.

When deciding on the amount of UMBI coverage to purchase, consider your own bodily injury liability limits. It is generally recommended that your UMBI limits match your bodily injury liability limits. This way, you are protecting yourself to the same extent that you are protecting others.

In addition to medical bills, UMBI coverage may also cover lost income or other general damages resulting from the accident. This can include lost wages, car repair bills, pain and suffering, and other losses incurred due to the accident.

By having UMBI coverage, you can have peace of mind knowing that you and your passengers are financially protected in the event of an accident with an uninsured or underinsured driver. This type of coverage is especially important in California, where it is estimated that 17% of motorists are uninsured.

Uninsured motorist property damage coverage

In California, drivers are required to carry a minimum amount of car insurance. The minimum liability insurance in California often does not provide sufficient coverage to fully protect you or your assets in the event that you are found to be at fault in an accident.

Uninsured Motorist Property Damage (UMPD) coverage is an optional add-on coverage in California. It pays for the damage to your car caused by an accident with an uninsured driver who is at fault. If the uninsured driver cannot be identified, or if you already have collision coverage, UMPD will not apply. The maximum coverage limit for UMPD in California is $3,500 towards the repair or replacement of your vehicle, regardless of how much the total repairs cost or what the car is worth.

UMPD is generally not recommended for more expensive cars, but it could be a cost-saving alternative to Collision coverage for an older, lower-value vehicle. Collision coverage applies to any damage to your vehicle caused by a collision with another vehicle or object, regardless of fault. If you are primarily concerned about any damage to your vehicle, then collision coverage may be a better option for you as it offers coverage in more scenarios.

If you have comprehensive car insurance coverage but not collision coverage, then UMPD is worth considering so that you are at least covered for vehicle damage caused by uninsured drivers. However, if you already have collision coverage, then UMPD coverage may be unnecessary.

Collision and comprehensive coverage

While neither collision nor comprehensive insurance is required by California state law, they are typically required if you finance or lease your car. The maximum coverage limit is typically based on the actual cash value of your car at the time of the accident, so you don't choose a coverage amount. Instead, you select a deductible, which is the amount you pay before the insurance company covers the rest. Deductibles typically range from $100 to upwards of $2,000, and choosing a higher deductible will lower your premium.

When deciding whether to purchase collision and comprehensive coverage, consider the value of your car, how much you drive, and your current savings. If you own a high-value car, drive long distances, or don't have enough savings to cover the cost of repairing or replacing your car, then purchasing comprehensive and collision coverage is a good idea. Additionally, if you live in an area with a high risk of vehicle damage due to factors like fallen branches or animals, comprehensive coverage may be particularly important.

Frequently asked questions