Full Coverage Auto Insurance: California's Complete Protection

Full coverage auto insurance in California includes comprehensive, collision, and liability insurance. This means that drivers are covered for accidents and losses caused by vandalism, severe weather, fire, or theft. In California, drivers are required to have a minimum of $15,000 in bodily injury liability coverage per person, up to $30,000 per accident, and $5,000 in property damage liability coverage. While full coverage is not mandatory, it is a good idea to have more protection than the state minimum.

Comprehensive, collision, and liability insurance are included in full coverage

Full coverage auto insurance in California includes comprehensive, collision, and liability insurance. Comprehensive and collision insurance are optional but essential forms of protection for your vehicle. While comprehensive insurance covers damage to your vehicle from non-collision incidents like theft, animal damage, falling trees, and weather damage, collision insurance covers damage to your vehicle resulting from a collision with another vehicle or object. Both forms of insurance are typically required for a car loan or lease.

Comprehensive insurance offers financial protection for repair expenses resulting from non-collision incidents. This includes damage caused by fire, hail, vandalism, or natural disasters like floods. It also covers theft and damage caused by falling objects or animals. For example, if a tree falls on your car during a storm or a deer jumps into your vehicle, comprehensive insurance will cover the repair costs.

On the other hand, collision insurance covers the cost of repairing or replacing your vehicle if you are involved in an accident, regardless of fault. This includes collisions with other vehicles, single-car rollovers, and accidents with stationary objects like road signs or guardrails. If you accidentally back into a pole while parking, collision insurance will cover the repairs.

Liability insurance, which is required by law in California, protects you from being financially liable if you cause an accident. It covers bodily injury and property damage suffered by someone other than the policyholder. The minimum liability insurance requirements in California are $15,000 for one person's injury or death, $30,000 for multiple injuries or deaths, and $5,000 for property damage.

Full coverage costs an average of $2,567 per year in California

Full coverage auto insurance in California includes comprehensive, collision, and liability insurance. Comprehensive insurance covers damage to your car from vandalism, theft, natural disasters, and falling objects. Collision insurance, on the other hand, pays for the repair or replacement of your vehicle after an accident, regardless of who caused it. Liability insurance is mandatory in California and covers bodily injury and property damage to others in an accident caused by the policyholder. The state's minimum liability insurance requirements are $15,000 for one person's harm or death, $30,000 for multiple injuries or deaths, and $5,000 for property damage.

While liability insurance is mandatory, collision and comprehensive insurance are not required by law. However, lenders usually require them when you finance or lease a car. Additionally, uninsured/underinsured motorist coverage and medical payments coverage are optional but beneficial additions to your policy.

The average cost of full coverage auto insurance in California is $2,567 per year, according to one source. Another source states the average cost to be slightly higher, at $2,667 per year. In comparison, the national average for full coverage auto insurance is $1,718 per year. The higher cost of auto insurance in California could be attributed to factors such as densely populated areas, higher vehicle repair costs, and more expensive medical expenses.

The cost of auto insurance can vary based on individual factors such as age, driving record, credit score, and the type of car driven. For example, young drivers and those with a recent DUI or poor credit tend to pay higher insurance rates. Additionally, insurance rates can differ by city, with drivers in Los Angeles and San Francisco paying more than the state average due to higher populations and an increased risk of accidents.

California's minimum liability insurance requirements

• $15,000 for one person's injury or death.
• $30,000 for multiple injuries or deaths.
• $5,000 for property damage.

Liability insurance covers bodily injury or property damage to someone other than the policyholder. It is important to note that comprehensive or collision insurance does not meet vehicle financial responsibility regulations. Therefore, drivers in California must have either vehicle insurance or another form of financial responsibility before getting behind the wheel.

While purchasing auto insurance is the simplest way to demonstrate financial responsibility, other types of coverage may also be acceptable. However, driving without insurance in California can result in fines and the suspension of your license.

Although liability insurance is a mandatory coverage in almost every state, comprehensive and collision insurance (physical damage coverages) are typically considered optional. However, lenders or lease companies may require these coverages if you are financing or leasing a vehicle.

In addition to the minimum liability requirements, California drivers may also want to consider optional forms of auto insurance, such as uninsured/underinsured motorist coverage and medical payments coverage. Uninsured/underinsured motorist coverage will pay for your medical claims and auto repair costs if you are hit by a driver with no insurance or insufficient coverage. Medical payments coverage will cover reasonable and necessary medical expenses for you and your passengers, regardless of who is at fault.

Collision and comprehensive insurance are optional but may be required by a lender

Collision and comprehensive insurance are optional in California but may be required by a lender. This means that, while not mandatory, you may be required to purchase these types of coverage if you are financing or leasing a vehicle. Collision and comprehensive insurance are often bundled together in California, but they are two distinct forms of first-party insurance.

Collision insurance covers the cost of repairing or replacing your vehicle after a collision with another object, such as a fence, gate, or another vehicle. It is important to note that if your vehicle collides with another person's vehicle and they are ruled at fault, their insurance policy will typically cover the cost of repairs. However, if the other party does not have insurance, your collision coverage will come into play, and your deductible may be waived if you have uninsured motorist protection.

On the other hand, comprehensive insurance, often referred to as "other-than-collision" coverage, protects your vehicle from damage caused by something other than a collision. This includes vandalism, theft, natural disasters, falling objects, fires, floods, and more.

The cost of collision and comprehensive insurance in California depends on two main factors: the policy limits, which are usually based on the current market value of the vehicle, and the amount of the deductible selected. The deductible is the amount you must pay out of pocket before the insurance company covers the remaining costs of repairs or replacement. A higher deductible typically results in lower insurance costs.

While collision and comprehensive insurance are optional for vehicle owners in California, lenders may require their purchase before financing or leasing a new vehicle. Therefore, it is essential to understand the requirements and coverage options when obtaining auto insurance in California.

Uninsured/underinsured motorist insurance is an optional but recommended type of coverage

Uninsured motorist coverage will cover damage and medical costs if you are involved in an accident with a driver who does not have car insurance. This includes situations where you are a pedestrian or bicyclist, and even if you are injured by a hit-and-run driver. However, in the case of a hit-and-run, there must be physical contact between your vehicle and the other vehicle. Uninsured motorist property damage will cover the cost of repairs to your car, up to a limit of $3,500, but only if the uninsured driver is identified.

Underinsured motorist coverage, on the other hand, will cover injuries and damages beyond the limits of the other driver's policy. This includes both bodily injury and property damage. Bodily injury coverage typically covers medical bills for you and your passengers, as well as lost wages and pain and suffering damages. Property damage coverage pays for repairs to your vehicle.

In California, uninsured and underinsured motorist coverage only applies if the other driver's liability limits are lower than your coverage limits. For example, if the other driver has a $15,000 liability policy and you have a $15,000 uninsured/underinsured motorist policy, you cannot make a claim. However, if you had $30,000 in coverage, you could make a claim for up to $15,000. It is important to carefully review the requirements of your policy to understand when you can make a claim.

Overall, uninsured and underinsured motorist coverage can provide crucial financial protection in the event of an accident, especially in a state like California, where a significant percentage of drivers are uninsured. While it is not required by law, it is highly recommended to help ensure you are fully protected on the road.

Frequently asked questions