Auto Insurance Basics: California's Minimum Requirements Explained

California requires all drivers to have auto insurance or some form of financial responsibility before driving. The state's minimum car insurance requirements include $15,000 in liability coverage for a single other driver's injury, $30,000 in coverage per accident, and $5,000 in coverage for property damage. These limits are known as '15/30/5' and are the minimums mandated by the state. California is an at-fault state, meaning the party responsible for an accident must cover the injuries of the other driver and their passengers.

Bodily injury liability coverage

In California, it is mandatory to have bodily injury liability insurance in case you injure or cause the death of someone in a car accident. This is a form of third-party insurance that covers the damages sustained by people in other vehicles in an accident that you cause. It does not cover injuries to you or your passengers.

The minimum bodily injury liability insurance required by California state law is '15/30' coverage. This means that your insurance will cover up to $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. You are personally liable for any damages exceeding these limits, so it is recommended that you purchase policies with higher limits if you can afford them.

Bodily injury liability insurance covers:

• Lost earning capacity
• Ambulance costs
• Emergency room charges
• Doctor's bills and other medical expenses
• Hospital bills and other medical payments
• Chiropractor bills
• Physical or occupational therapy
• X-rays and MRIs
• Short- or long-term care (such as home health aides)
• Prosthetics
• Dental expenses resulting from broken teeth
• Funeral expenses

Bodily injury liability insurance does not cover car repair bills or damage to other property, such as fences or gates. By law, you are required to carry a minimum of $5,000 of property damage liability insurance (also known as 'collision coverage') in addition to bodily injury liability insurance.

Property damage liability coverage

In California, drivers are required to carry a minimum of $5,000 in property damage liability coverage. This type of insurance covers damage to other people's property caused by your vehicle. For example, if you are responsible for a car accident, property damage liability coverage will pay for the cost of repairing or replacing another person's car or other property.

In addition to property damage liability coverage, California drivers are also required to carry bodily injury liability coverage and uninsured motorist coverage. Bodily injury liability coverage helps pay for the medical expenses of people injured in an accident that you are deemed at fault for. This coverage is required in California at a minimum of $15,000 per person and $30,000 per accident. Uninsured motorist coverage protects you if you are in an accident with a driver who does not have insurance or whose insurance cannot cover the cost of the damages. In California, the minimum required uninsured motorist bodily injury coverage is $15,000 per person and $30,000 per accident, while the minimum required uninsured motorist property damage coverage is $3,500.

It is important to note that these are the minimum coverage requirements in California, and you may choose to purchase additional insurance to protect yourself financially in the event of an accident. Comprehensive and collision insurance, for example, can help cover the cost of damage to your own vehicle, but they are not required to meet vehicle financial responsibility requirements in California.

Uninsured motorist bodily injury coverage

In California, drivers are required to carry at least $15,000 per person and $30,000 per accident in uninsured motorist bodily injury coverage. This coverage is designed to protect you and your passengers if you are in an accident with an uninsured or underinsured driver. It covers medical expenses for you and your passengers, as well as any property damage to your vehicle.

In California, it is estimated that one in six motorists does not have insurance. This means that if you are involved in an accident with an uninsured driver, you may have difficulty recovering damages for your medical costs, lost wages, car repair bills, and other losses. Uninsured motorist bodily injury coverage can help to ensure that you receive the compensation you need to cover these expenses.

It is worth noting that your uninsured motorist bodily injury coverage has limits. The minimum coverage required by law in California is $15,000 per person and $30,000 per accident. However, if you can afford it, it is recommended that you purchase a higher amount of coverage. A policy with limits of $300,000 to $500,000 is often suggested as a more adequate level of protection.

Additionally, it's important to be aware of the role of insurance companies in the event of an accident. When you file a claim with your insurance company, they are obligated to investigate and evaluate your claim promptly and thoroughly. If your insurer unreasonably delays or fails to settle your claim fairly, you may have grounds for legal action against them.

Uninsured motorist property damage coverage

In California, drivers are required to carry a minimum amount of auto insurance, which includes uninsured motorist property damage coverage. This type of insurance covers damage to your vehicle caused by an uninsured or underinsured driver. The minimum amount of coverage required for this type of insurance in California is $3,500.

It is important to note that uninsured motorist property damage coverage will only apply if the uninsured driver is identified. Additionally, this type of insurance may not cover hit-and-run accidents, depending on the state and insurer. In such cases, collision coverage would be necessary to protect yourself financially.

While the minimum amount of uninsured motorist property damage coverage required in California is $3,500, you may want to consider purchasing a higher limit depending on the value of your vehicle and the likelihood of an accident. It is always a good idea to review your insurance policy and ensure that you have adequate coverage to protect yourself financially in the event of an accident.

In addition to uninsured motorist property damage coverage, California also requires drivers to carry bodily injury liability coverage, property damage liability coverage, and uninsured motorist bodily injury coverage. These types of insurance work together to protect you financially in the event of an accident, whether it is your fault or the fault of another driver.

Medical payments coverage

Med Pay covers all reasonable and necessary medical bills and/or funeral expenses up to the policy limits. This includes ambulance and EMT bills, chiropractor or acupuncture bills, physical or occupational therapy, short- or long-term care (including home health care), medical equipment (such as crutches), and dentist's bills to fix broken teeth. Unlike health insurance plans, Med Pay has no limit on the types of services or providers you can use. It is also "per incident" rather than per year, so there is no yearly cap on claims as there is with many health insurance policies.

Med Pay is particularly beneficial if you have no health insurance, or if your health insurance has high deductibles or co-pays. Even if you have good health insurance, Med Pay may still be preferable if you have not met your yearly deductible or if you have large co-pays. Additionally, Med Pay also covers passengers in your vehicle, regardless of whether they have health insurance.

It is important to note that Med Pay only covers medical bills. To recoup compensation for other losses typical in a car accident, such as vehicle repair costs, lost wages, or pain and suffering, you would need to pursue a claim against the at-fault driver's auto liability insurance or your own insurance, depending on the situation.

Frequently asked questions