California's Mandatory Auto Insurance: What You Need To Know

California requires drivers to have auto liability coverage, including bodily injury liability and property damage liability. The minimum coverage requirements in California are $15,000 for bodily injury per person, $30,000 per accident, and $5,000 for property damage. California is an at-fault state, meaning the party responsible for an accident must cover the injuries of the other driver and their passengers. Residents are required to have car insurance to legally operate their vehicles.

Bodily injury liability coverage

In California, it is mandatory to have bodily injury liability insurance in case you injure someone in a car accident. This insurance covers the other party's expenses arising from physical injuries, up to your policy limit.

The minimum bodily injury liability coverage in California is $15,000 per person and $30,000 per accident. This means that your auto insurance will cover up to $15,000 for wrongful death or bodily injury of one person, and up to $30,000 for all people hurt or killed in a single accident.

Bodily injury liability insurance covers a range of expenses, including medical costs such as emergency care, hospital fees, follow-up visits, and medical equipment. It also covers lost income if the injured person is unable to work after the accident and can include funeral costs if the injuries are fatal. In addition, it can cover legal fees if you are sued by the injured party.

It is important to note that bodily injury liability insurance does not cover property damage, car repairs, or injuries to you or your passengers. It is also limited to the amount specified in your policy, so you may want to consider purchasing additional coverage if you can afford it.

While the minimum coverage required by law in California is $15,000 per person and $30,000 per accident, experts recommend having higher limits, such as $100,000 per person and $300,000 per accident, to adequately protect your assets in the event of a lawsuit.

Property damage liability coverage

While the minimum requirement for property damage liability coverage in California is $5,000, it is worth considering higher coverage limits. The repair or replacement costs of damaged property can quickly exceed this amount, leaving you financially responsible for the difference. Experts generally recommend higher coverage limits, such as 100,000 per accident, to provide more comprehensive protection.

In addition to property damage liability coverage, California also requires drivers to carry bodily injury liability coverage. This type of coverage pays for injuries you cause to others in an accident and has minimum requirements of $15,000 per person and $30,000 per accident. Together, these liability coverages ensure that you are financially protected if you are at fault in an accident, whether it involves property damage, injuries, or both.

Uninsured motorist bodily injury coverage

In California, it is not mandatory to have uninsured or underinsured motorist coverage. However, it is a good idea to have this coverage as the state has a high percentage of uninsured motorists. The minimum requirement for liability insurance in California is $15,000 per person for bodily injury, $30,000 per accident for bodily injury, and $10,000 per accident for property damage. These limits may not be sufficient if you are involved in an accident with an uninsured or underinsured driver, as you may not receive adequate compensation for your damages.

UMBI coverage, on the other hand, can provide more comprehensive protection. It covers medical bills for you and your passengers, lost wages if you are unable to work, and pain and suffering damages. This type of coverage ensures that you are financially protected regardless of the actions of other drivers. It is important to note that UMBI coverage is typically included in your auto insurance policy unless you waive it in writing.

The minimum UMBI coverage offered by insurers in California is typically $30,000 per person for bodily injury and $60,000 per accident. However, you have the option to purchase higher coverage limits, such as $100,000 per person and $300,000 per accident. It is recommended to have UMBI coverage equal to your liability coverage to ensure you are fully protected in the event of an accident.

UMBI coverage not only applies when you are driving but also when you are a passenger in someone else's vehicle, a pedestrian, a bicyclist, or even a bystander. It also covers other passengers in your car or individuals driving your car with your permission. Therefore, UMBI coverage provides a comprehensive level of protection for you and your family in the event of an accident involving an uninsured or underinsured driver.

Uninsured motorist property damage coverage

UMPD covers the cost of repairing or replacing your vehicle or other property if it is damaged in an accident caused by an uninsured or underinsured driver. It is meant to replace the property damage liability insurance that the other driver should have had. This type of coverage is required in some states, optional in others, and unavailable in about half of the states.

UMPD in California

In California, insurance companies are required to offer UMPD coverage of at least $3,500 per accident. However, you can choose to reject this coverage if you don't feel it is necessary. If you already have collision coverage, you may not need UMPD as collision coverage will pay for repairs to your vehicle regardless of fault.

Benefits of UMPD

Even though it's not mandatory, UMPD can provide valuable protection in the event of an accident with an uninsured or underinsured driver. It can help cover the cost of repairs to your vehicle, as well as any extra costs if the other driver doesn't have enough property damage liability insurance. Additionally, UMPD can provide coverage for damage to your home or other property.

How to Get UMPD in California

If you're interested in adding UMPD to your auto insurance policy in California, you can speak to your insurance agent or broker. They can help you understand your coverage options and choose the right amount of UMPD for your needs. It's important to review your policy carefully and ask any questions you have before purchasing coverage.

Collision coverage

If you choose not to carry collision coverage on your vehicle, you will be responsible for the cost of repairs or replacement if you are involved in an accident. Collision coverage typically does not apply to collisions with animals or damage caused by events outside of your control, such as a tree falling on your vehicle. These types of incidents would be covered under comprehensive coverage.

When deciding whether to purchase collision coverage, consider the value of your vehicle, your ability to pay for repairs or a replacement vehicle out of pocket, and whether your vehicle will be in storage for an extended period. Collision coverage can provide peace of mind and financial protection in the event of an accident.

In California, if you carry collision coverage on your car, you may be eligible for the California Deductible Waiver. This means that if an uninsured driver causes an accident, your insurance company will pay the collision deductible on your vehicle.

Frequently asked questions