The California Department of Motor Vehicles (DMV) mandates all drivers have at least liability insurance to cover potential injuries to third parties and property damage to vehicles, up to their policy limit.
California law mandates minimum limits of 15/30/5 for bodily injury liability and $5,000 for property damage liability; you can choose higher limits to maximize protection.
Liability coverage
California law mandates drivers purchase liability insurance to cover medical bills and property damage caused by an accident caused by them. Liability insurance should cover both those injured in an accident as well as your own medical costs should anything arise that results from being behind the wheel.
Liability coverage typically features split limits for bodily injury per person/bodily injury per accident/property damage per incident.
But these limits may not cover all of your losses in an accident that results in severe car accident injuries and/or vehicle damage.
At this point, it is wise to purchase higher limits and additional coverage in case an accident ever does happen. California offers low-cost auto policies through their Low Cost Auto Insurance Program (CLCA).
Collision coverage
Collision coverage covers damage to your car if it collides with another vehicle or object, or if it rolls over.
Cost of collision insurance varies based on state as well as number of claims filed; personal details like age, gender and marital status can impact its price quote.
Depending on the terms of your loan or lease agreement, your lender may require comprehensive and collision coverage until its term has expired. Otherwise, whether to buy such coverage is entirely up to you.
Comprehensive coverage
Comprehensive car insurance provides coverage against damage to your car from multiple causes, including fires, floods, theft, vandalism and weather events. It is especially crucial in areas prone to natural disasters or when operating high-value vehicles.
California drivers have two options for comprehensive car coverage – standalone policies or adding it to their liability policy. Your decision depends on the value of your car, your financial status and risk tolerance.
Uninsured/underinsured motorist coverage, which covers any injuries you sustain if hit by someone with no or insufficient coverage, is optional and you can determine its usefulness by consulting with your State Farm agent or checking online resources such as Kelley Blue Book.
Uninsured or underinsured motorist coverage
Uninsured or underinsured motorist coverage provides financial protection in case you’re involved in an accident with someone without sufficient coverage, like California does not require. While it isn’t legally mandatory to carry such insurance coverage as an additional option to your auto policy.
California ranks high for uninsured drivers, with nearly 1 out of every 8 drivers not carrying insurance and increasing the risks of collision with uninsured motorists significantly. California stands out as having one of the highest concentrations of uninsured motorists nationwide with numbers that vary greatly state to state.
Most uninsured and underinsured motorist claims require relatively inexpensive coverage – a small price to pay for peace of mind.
Other acceptable forms of insurance
California law mandates that all drivers carry proof of auto insurance. Failing to present this evidence when pulled over or after an accident could result in fines and penalties; similarly if financing or leasing your vehicle may also require you to carry certain forms of coverage such as physical damage coverage (full coverage), which pays up to an agreed-upon limit to repair another party’s vehicle should you cause an accident.
California drivers can bolster their auto coverage with other forms of insurance such as certificates from the DMV and medical payments coverage (MedPay). These forms could be particularly beneficial to people who own multiple vehicles or possess substantial assets they’d like to safeguard from unexpected accident costs.