Key Takeaways
In California, you must have car insurance. Also, every driver must always have proof of insurance with them. Driving without the right insurance puts you at risk and could get you into trouble. Check out our guide for California car insurance choices and the required coverages.
| Minimum Liability Coverage: 15/30/5 |
|---|
| Bodily injury $15,000 per person |
| Bodily injury $30,000 per accident |
| Property damage $5,000 per accident |
In one case, the minimum coverage standards still need to be met. Suppose you qualify for a policy through the state's Low-Cost Auto Insurance Program, or CLCA. In that case, you can buy auto insurance with lower limits and still follow California's auto insurance rules. The CLCA program aims to make car insurance more affordable for safe drivers whose family income exceeds the government poverty level.
The average cost of California's minimum liability insurance is $57 per month or $576 annually. This covers the state-mandated minimums of:
Your set limits will tell your car insurance company how much they will pay. A cap is just the most that an insurance company will pay out on a claim.
While each state sets its insurance coverage limits, they are usually broken down into three groups: property damage, bodily injury per person, and bodily injury per accident.
This is California's minimum, which is written as 15/30/5 and described below:
In California, you need liability insurance to be able to drive legally. However, drivers should think about the many types of coverage that most insurance companies offer as a way to get more protection.
The following is a list of some of the most popular choices:
| Coverage type | Pays for |
|---|---|
| Uninsured and underinsured motorist coverage | This type of insurance covers you if you are hit by a driver who doesn't have insurance or doesn't have enough insurance. |
| Collision insurance* | This coverage takes over if your car is damaged in an accident with another car or item (other than an animal). |
| Comprehensive insurance* | This type of insurance covers your car against any damage that doesn't happen in an accident. This includes risks like being robbed, hurt by the weather, or hitting an animal. When you buy comprehensive and accident coverage together, it's usually called "full coverage." Some lenders or lien holders may require these coverages if you are getting a loan to pay for your car. |
| Medical payments coverage | If you and your passengers get hurt in a car accident, this policy will help pay for your medical bills and other costs. |
| Roadside assistance | If you get stuck on the side of the road, this service will come to your aid. The specifics of the coverage vary from company to company. However, in general, roadside help will fix a flat tire, jump-start a dead battery, and pay for a tow to a nearby garage, among other things. |
| Bodily injury liability | This type of insurance helps pay for the medical bills of people hurt because of an accident you caused. Most states require you to have this coverage, and because Florida only requires a small amount of PIP coverage, it may be a good idea to get it. |
| Rental car reimbursement | Without this coverage, you won't have to worry about getting a rental car while yours is fixed. |
| Loan/lease payoff | This can help pay the difference between how much you still owe on your car loan and how much the car is worth now. It's also called "gap coverage." |
California requires less car insurance than most other states do. Having the bare minimum of covering probably won't protect you against everything.
Emergency care prices can quickly use up your bodily injury limits, even if the injuries aren't too bad. When compared to the price of a new car, the $5,000 property is also a relatively small amount of money. You might have to pay for all the damage that has yet to be paid for.
Remember that California does not require you to have insurance on your car. Getting more coverage or raising your limits is a good idea if you want to be completely covered.
If anyone is caught driving without insurance in California, they will face the following punishments:
The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.
Quotes are typically based on a full coverage policy average unless otherwise noted within the content.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com
Way.com’s Insurance Broker Quote Data
In California, you must carry a minimum level of car insurance coverage, which includes $15,000 for bodily injury or death per person involved in an accident, $30,000 for total bodily injury or death per accident, and $5,000 for property damage caused by your vehicle.
Penalties include fines, license suspension, and potential lawsuits.
Update your insurance within 30 days of moving.
You can be sued, even if the accident wasn't your fault.
Yes, car insurance is mandatory.
No, insurance isn't required for registration, but it is for driving.
Basic insurance covers liability and property damage.
Insurance typically follows the car, not the driver.
No, you need a valid driver's license to get car insurance.
California is a "fault" state, meaning the at-fault driver's insurance covers damages.
No, PIP coverage is not required.
Yes, California requires uninsured/underinsured motorist insurance.
Yes, California allows for diminished value compensation in some cases.
DUIs typically lead to higher insurance rates or policy cancellations.
Access your digital insurance card through the app. You no longer need to carry your physical insurance card with you.
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