Liability Auto Insurance In California: How Much Is Enough?

California requires drivers to have liability insurance, which covers others' injuries and property damage if you are the at-fault driver in an accident. The minimum coverage in California is $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. However, it is recommended to get more than the minimum required insurance as liability insurance does not cover your own vehicle or medical expenses. The cost of liability insurance in California varies depending on factors such as age, driving record, and location, but on average, it can range from $31 to $193 per month for minimum coverage.

California's minimum liability insurance requirements

California requires drivers to have liability insurance, which covers others' injuries and property damage if the driver is at fault in an accident. The minimum liability insurance requirements in California are:

• $15,000 in bodily injury liability per person
• $30,000 in bodily injury liability per accident
• $5,000 in property damage liability per accident

These requirements are comparatively low, and California also allows lower limits for people who can't afford standard insurance. However, it is recommended to go beyond the state minimum liability limits, as accident claims can easily exceed these amounts.

How liability insurance works in California

Liability insurance is designed to protect others in the event that you are at fault for a car accident. If you cause any bodily harm or property damage, your liability insurance will help pay for those damages. Liability insurance is the required minimum for all drivers in most states, including California. That means if you are in a car accident and someone else is at fault, their liability insurance will help pay for damages to you or your property.

Determining Fault

Because fault determines who pays what after a car accident, it's important to establish who was at fault. In some cases, it may be clear-cut. If you or the other driver knows who is at fault, then it will be easy to process the insurance claim. If it is not clear-cut, then it will be up to the authorities (police, insurance adjusters, or a court of law) to determine fault.

Types of Fault

Different states have different categories of fault that help determine how much you or the other driver were at fault for a car accident. The level of fault may determine the monetary amount of damages you can receive.

• Pure Contributory Negligence: In states that use this system, you cannot receive any damages if you were partially at fault, no matter how small.
• Pure Comparative Fault: Under this system, the damages a party can receive are reduced based on how much they were at fault.
• Modified Comparative Fault: Only 33 states use this system. Of these, 12 use a 50% bar rule that says a party cannot receive damages if they were at least 50% at fault. The other 21 states use a 51% bar rule.

In California, you can collect damages even if you are mostly at fault, but the degree to which you were at fault reduces how much compensation you can receive.

What Liability Insurance Covers in California

Liability insurance in California refers to two types of coverage: property damage liability coverage and bodily injury liability coverage. Property damage liability covers property damages you may cause with your car, including damage to other vehicles and structures like fences and mailboxes. Bodily injury liability covers the injuries you cause to another person with your car and can help pay for things like medical expenses.

What Liability Insurance Does Not Cover in California

Liability insurance is the minimum insurance that drivers must have in California, but it's important to get more coverage because there are certain things liability insurance won't cover. For example, your own liability insurance does not cover your vehicle. If you want coverage for theft, vandalism, weather damage, or falling trees, you'll need to take out comprehensive insurance. If you want enhanced coverage for medical bills and funeral expenses, you can take out MedPay or Personal Injury Protection (PIP) insurance.

California's Low-Cost Auto Insurance Program

The state of California offers a low-cost insurance program if you can't find a policy that fits your budget and includes the required liability insurance limits. This program offers lower liability limits than the state's minimum requirements, so while you'll have less coverage if you cause an accident, you can still drive legally in California. However, California's Low-Cost Auto Insurance Program is income-based, so not everyone will qualify.

What liability insurance covers

Liability insurance in California covers two main areas: bodily injury liability and property damage liability.

Bodily Injury Liability

This covers other people's injuries in an accident you cause. It pays for the other driver's medical bills, lost wages, and other losses suffered by the innocent party or parties. It does not cover losses sustained by the person who caused the accident or anyone in that person's vehicle.

Property Damage Liability

This covers property damage in an accident you cause. It pays for damage to another person's car, or to objects and structures that your car hits, such as fences and mailboxes.

Liability insurance may also cover your legal expenses if you're sued by another driver.

What liability insurance doesn't cover

Liability insurance in California is a requirement for drivers to have some amount of insurance to drive legally. It covers the following:

• Bodily injury liability, which pays for other people's injuries in an accident you cause.
• Property damage liability, which pays for property damage in an accident you cause.

Liability insurance does not cover your own injuries or property damage. It may, however, cover your legal expenses if you're sued by another driver.

• Damage to your own vehicle. Collision coverage is a separate type of insurance that covers repairs to your own car.
• Your own medical bills. Medical payments coverage is another separate type of insurance that covers your own injuries, regardless of who is at fault.
• Damage to someone else's property caused by something other than your vehicle, such as a fire or flood. Comprehensive coverage is another separate type of insurance that covers damage to your own vehicle from non-collision incidents.
• Damage to someone else's vehicle caused by someone else. If someone else hits your car, their property damage liability insurance would cover the repairs, not yours.

Why you should get more than liability insurance

Liability insurance is the minimum insurance requirement for drivers in California. It covers bodily injury liability and property damage liability, meaning it pays for other people's injuries and property damage in an accident where you are at fault. However, it does not cover your own injuries or property damage. While liability insurance is a legal requirement, it is worth considering additional coverage to ensure you are fully protected in the event of an accident. Here are some reasons why you should get more than just liability insurance:

• Enhanced Protection: Liability insurance only covers the other party's expenses in an accident where you are at fault. By adding coverage options like collision and comprehensive insurance, you can protect yourself from the financial burden of repairing or replacing your own vehicle, regardless of who is at fault.
• Medical Payments Coverage: Liability insurance does not typically cover your medical expenses or those of your passengers. By adding medical payments coverage, you can ensure that you and your passengers receive the necessary medical care after an accident, regardless of fault.
• Uninsured and Underinsured Motorist Coverage: In California, it is estimated that 16.6% of drivers do not have car insurance. If you are in an accident with an uninsured or underinsured driver, liability insurance will not cover your expenses. By adding uninsured and underinsured motorist coverage, you can protect yourself from these financial risks.
• Comprehensive Coverage: Liability insurance does not cover damage to your vehicle from events other than collisions, such as theft, vandalism, or natural disasters. By adding comprehensive coverage, you can have peace of mind knowing that your vehicle is protected in a wider range of scenarios.
• Peace of Mind: While liability insurance meets the legal requirements, it may not provide sufficient coverage for all your needs. By opting for additional coverage, you can rest assured that you, your vehicle, and your passengers are adequately protected in a variety of situations.
• Customization: When you get more than just liability insurance, you have the flexibility to customize your policy based on your specific needs. For example, you can choose higher liability limits, add coverage for custom equipment, or include rental reimbursement if your vehicle needs repairs.

In conclusion, while liability insurance is the minimum requirement, it is important to consider your unique circumstances and choose a policy that provides comprehensive protection. By investing in additional coverage options, you can ensure that you, your vehicle, and your passengers are covered in a wide range of situations, giving you greater peace of mind when driving in California.

Frequently asked questions