Auto Liability Insurance Coverage In California: What's Included?

Auto liability insurance is a legal requirement for drivers in California. It covers the cost of injuries and property damage caused to others in the event of a car accident that is your fault. The minimum liability coverage required by law in California is $15,000 for the injury or death of any one person, $30,000 total for the injury or death of multiple people, and $5,000 for property damage. This is often referred to as 15/30/5 insurance.

Bodily injury liability

In California, bodily injury liability insurance is a legal requirement for all drivers. It covers the cost of any injuries you cause to another person in a car accident, including medical expenses, lost income, and funeral costs. It also covers legal fees if you are sued by the other driver.

The minimum bodily injury liability coverage in California is $15,000 for the injury or death of one person, and $30,000 for the injury or death of more than one person in any single accident. This means that if you are at fault for an accident, your insurance will cover the medical bills of the other driver up to $15,000, and if there are multiple people in the other vehicle, it will cover their collective medical bills up to $30,000. However, it is recommended that drivers purchase policies with higher limits than the state minimum to ensure adequate protection.

It is important to understand the limits and exclusions of your insurance policy to ensure you have adequate coverage in the event of an accident.

Property damage liability

In California, the minimum property damage liability insurance requirement is $5,000. This means that if you damage someone else's property in a car accident and you are at fault, your insurance will cover the cost of repairs up to $5,000. If the cost of repairs exceeds this amount, you will be responsible for paying the remaining costs out of pocket.

It is important to note that property damage liability insurance does not cover damage to your own vehicle. If you want coverage for your own vehicle, you will need to purchase additional insurance, such as collision insurance or comprehensive insurance.

In addition to property damage liability insurance, there are other types of coverage that you may want to consider for more comprehensive protection. These include collision insurance, comprehensive insurance, medical payments coverage, and uninsured/underinsured motorist coverage. Each of these coverage types serves a specific purpose and can provide financial protection in different scenarios.

Minimum liability coverage

In California, drivers are legally required to have a minimum level of auto liability insurance, which covers the cost of injuries and property damage caused to others in an accident. This is known as minimum liability coverage.

The minimum liability coverage in California is currently as follows:

• $15,000 for the death or injury of any one person. If one person is injured in the accident, the coverage pays up to $15,000.
• $30,000 total for the death or injury of more than one person in any one accident. If two or more people are injured, the coverage pays up to $30,000. The injured people share the money.
• $5,000 for damage to the property of other people. This includes damage to someone else's car, or to objects and structures like fences and mailboxes.

These limits may not be enough to cover the costs of a serious accident. Many experts recommend higher limits of 100/300/100 or above. Drivers can also purchase additional coverage to protect themselves and their passengers, as well as their own vehicles.

Liability insurance does not cover injuries to the policyholder or anyone in their household. It also does not cover damage to the policyholder's own vehicle.

California law states that all drivers must be able to establish financial responsibility and carry evidence of this in their vehicle at all times. Most people show financial responsibility by buying auto liability insurance, but there are other ways to do this, including making a cash deposit with the Department of Motor Vehicles (DMV) or obtaining a surety bond.

When liability coverage applies

Liability insurance covers bodily injury and property damage that you cause to others when an accident is your fault. California requires all drivers to carry this coverage.

Liability insurance only covers damages when the policyholder is legally responsible. It does not pay anything if an accident is not your fault.

Liability coverage applies when you are at fault for an accident and it covers the damages you cause to others. This includes:

• Wrongful death damages
• Repair or replacement costs for damage to another vehicle or property
• Protection of your assets if you are sued

Liability insurance does not cover your own injuries or property damage.

California requires these minimum auto liability limits:

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

However, these limits may not be enough. Many experts recommend higher limits or additional coverage for enhanced financial protection.

Collision and comprehensive coverage

Unlike property damage liability insurance, which is mandatory in California, collision and comprehensive insurance are optional. However, lenders or leasing companies may require you to purchase collision and comprehensive policies before financing or leasing a new vehicle. The cost of collision and comprehensive insurance depends on the policy limits and the deductible amount you choose. The higher the deductible, the lower the cost of the insurance. Collision and comprehensive coverage provide compensation based on the market value of your car.

While collision and comprehensive insurance are valuable, they may not be necessary for older, less valuable vehicles. The decision to purchase this coverage depends on your financial situation and the risk of a covered event occurring. Collision and comprehensive insurance can provide peace of mind, but it's important to weigh the costs and benefits before making a decision.

Frequently asked questions