Everything You Need to Know About California Minimum Liability Insurance

California requires all drivers to have minimum liability insurance coverage. The purpose of liability insurance is to protect you financially if you cause an accident that injures another person or damages their property. Without liability insurance, you could be responsible for paying for the other party’s medical bills, property damage, and other expenses out of your own pocket. In this article, we’ll cover everything you need to know about California minimum liability insurance.

What is California Minimum Liability Insurance?

California minimum liability insurance is the minimum amount of liability insurance that drivers are required to have in the state of California. According to California law, drivers must have at least:

These are the minimum required limits, but drivers can choose to purchase higher levels of coverage if they wish.

What Does Bodily Injury Liability Cover?

Bodily injury liability covers the medical expenses, lost wages, and other damages that are incurred by the other party if you cause an accident and injure them. The minimum required limits for bodily injury liability in California are:

• $15,000 per person
• $30,000 per accident

This means that if you cause an accident and injure one person, your insurance will cover up to $15,000 of their medical bills and other damages. If you cause an accident that injures multiple people, your insurance will cover up to $30,000 in total damages, but no more than $15,000 per person.

What Does Property Damage Liability Cover?

Property damage liability covers the cost of repairing or replacing the other party’s property if you cause an accident and damage their vehicle, fence, or other property. The minimum required limit for property damage liability in California is:

• $5,000 per accident

This means that if you cause an accident and damage the other party’s property, your insurance will cover up to $5,000 in damages.

What Happens If You Don’t Have Minimum Liability Insurance?

If you are caught driving without minimum liability insurance in California, you could face several penalties, including:

• Fines
• Suspension of your driver’s license
• Impoundment of your vehicle
• Jail time (in extreme cases)

If you cause an accident without minimum liability insurance, you could be held personally responsible for paying for the other party’s damages out of your own pocket. This could include medical bills, vehicle repairs, and other expenses, which could add up to thousands of dollars. Additionally, your credit score could be negatively affected, making it more difficult to obtain insurance in the future.

How to Choose the Right Liability Insurance Coverage

While the minimum required limits for liability insurance in California are relatively low, it’s a good idea to consider purchasing higher levels of coverage to protect yourself financially in the event of an accident. When choosing liability insurance coverage, consider:

• Your personal assets
• Your income
• Your driving history
• The value of your vehicle
• Your budget

You may also want to consider purchasing additional types of insurance coverage, such as collision insurance, comprehensive insurance, and uninsured/underinsured motorist insurance, to provide additional protection in the event of an accident.

FAQ

What is the cheapest liability insurance in California?

The cost of liability insurance in California can vary depending on a number of factors, including your age, driving record, and the type of vehicle you drive. To find the cheapest liability insurance in California, it’s a good idea to shop around and compare quotes from multiple insurance providers.

Can I drive without insurance in California?

No, it is illegal to drive without minimum liability insurance in California. If you are caught driving without insurance, you could face penalties including fines, suspension of your driver’s license, and impoundment of your vehicle.

What happens if I cause an accident without insurance?

If you cause an accident without insurance in California, you could be held personally responsible for paying for the other party’s damages out of your own pocket. This could include medical bills, vehicle repairs, and other expenses.

Should I purchase additional types of insurance coverage?

While minimum liability insurance is required by law in California, it may be a good idea to purchase additional types of insurance coverage, such as collision insurance, comprehensive insurance, and uninsured/underinsured motorist insurance, to provide additional protection in the event of an accident.

How can I find the right insurance coverage?

To find the right insurance coverage for your needs, it’s a good idea to shop around and compare quotes from multiple insurance providers. Consider your personal assets, income, driving history, and budget when choosing insurance coverage.