Auto Insurance in California: What You Need to Know
Auto insurance is a legal requirement for all drivers in California. With millions of drivers on the road, the state has specific regulations in place to ensure that drivers, passengers, and pedestrians are financially protected in the event of an accident. Because California has a high population density, heavy traffic, and a significant number of uninsured drivers, having adequate coverage is essential. This guide covers the basics of auto insurance in California, including legal requirements, coverage options, cost factors, and tips for finding the best policy.
Minimum Auto Insurance Requirements in California
California law requires all drivers to carry at least the following minimum liability insurance coverage:
- Bodily Injury Liability:
- $15,000 per person
- $30,000 per accident
- Property Damage Liability:
- $5,000 per accident
These minimums are often referred to as 15/30/5 coverage. Liability insurance covers the costs of injuries or property damage you cause to others in an accident. However, these limits may not be enough in serious accidents, which is why many drivers choose to purchase additional coverage.
California is an at-fault state, meaning that the driver responsible for an accident must pay for the damages. If your coverage is insufficient, you could be personally responsible for paying additional costs out of pocket.