How Does Car Insurance Work in California?

What Are the Minimum Car Insurance Requirements in California?

• California requires all drivers to show financial responsibility for the vehicles they own. Most individuals satisfy this requirement by purchasing car insurance. The minimum car insurance coverage required in California is:

  • Bodily injury or death coverage for one person per accident- $15,000
  • Bodily injury or death coverage for two or more people per accident – $30,000
  • Property damage coverage – $5,000

  Liability insurance coverage pays for damages other people sustain when you cause a car accident. As you can see, the minimum insurance requirements are very low. A minor injury could result in more than $15,000 in damages.

  You have the option of increasing your insurance coverage. Higher limits help protect you from personal liability if you are sued for a car accident.

  You can also purchase optional car insurance coverage, including:

  • Med Pay coverage pays medical bills you incur because of a car accident, regardless of who is at fault
  • Uninsured motorist coverage compensates you for damages caused by an uninsured driver or hit-and-run driver
  • Underinsured motorist coverage can help fill in the gap between an at-fault driver’s insurance coverage and the total of your damages
  • Collision insurance pays for damage to your vehicle if you cause an accident by colliding with another car or object 
  • Comprehensive insurance pays for damage to your vehicle from fire, flood, theft, hail, vandalism, and other covered catastrophes 

  Policyholders can purchase a variety of miscellaneous car insurance riders and endorsements, such as towing and road serviced coverage and gap insurance. Insurance agents can explain the terms and conditions of each type of car insurance and the premiums for coverage.