Question

What is full coverage of car insurance in California?

In California, full coverage means insurance coverage that includes all liability, comprehensive, and collision coverage.

The average cost of full-coverage car insurance in California is $1,659 per year. 

What does full coverage insurance in California include?   

“Full-coverage car insurance” is an umbrella term that combines multiple types of coverage, such as liability, collision, and comprehensive.

Minimum coverage   

Minimum coverage is the limit set by the state, which is mandatory for all cars registered in the state.

Here is the coverage and the minimum limit to keep:   

• Bodily injury: $100,000/$300,000   
• Property damage: $50,000   
• Medical payments: $5,000   
• Uninsured/underinsured motorist: Bodily Injury – $30,000/$60,000   
• Comprehensive deductible: $250   
• Collision deductible: $500   
• Waiver on collision deductible   

Not maintaining the minimum limits as mentioned above can lead to legal action.   

Comprehensive/collision coverage   

There are no minimum limits for comprehensive or collision coverage in the state of California. Generally, both comprehensive and collision coverage are intended to pay for damages to the car due to a crash or other reasons. The limits for this coverage are determined by the car’s actual cash value, local labor rates for that specific model, the statistical probability of damage, etc.

All the same, if your car is under a loan or lease, then it is mandatory to maintain the minimum coverage as per the agreement with the financier.    

Can you drive without insurance in California?   

No, not maintaining the minimum coverage as mandated by the state of California can lead to serious consequences, such as: 

• Traffic penalties and fines   
• Suspension of driver’s license and/or vehicle registration   
• Impoundment of a vehicle   

Above all, the “No Pay, No Play” rule in California stops you from collecting the indemnity for pain, suffering, or any such non-economic damages, even if the other party is at fault.   

If you fail to keep the comprehensive and collision coverages as per the loan/lease agreement, the financier buys one on your behalf as a force-placed insurance. This can be costlier than what you can find on your own. Also, the premium is added to your loan balance. In its extreme case, this can lead to repossession or lease termination.