Liability Car Insurance in California: Everything You Need to Know

Liability car insurance is a type of policy that covers damages and injuries to others that the policyholder causes while driving. It is mandatory in California to have liability car insurance, and failure to carry this insurance can result in penalties and fines. In this article, we will discuss everything you need to know about liability car insurance in California, including its requirements, coverage limits, and FAQs.

Liability Car Insurance Requirements in California

In California, all drivers must carry liability car insurance, as mandated by the state’s Financial Responsibility Law. This law requires drivers to carry a minimum amount of liability coverage for bodily injury and property damage caused by the driver.

The minimum liability coverage requirements in California are:

It is important to note that the minimum requirements may not be sufficient to cover all costs in the event of an accident. Policyholders may choose to purchase higher limits to ensure they are adequately covered.

What is Bodily Injury Liability?

Bodily injury liability coverage pays for medical expenses and lost wages incurred by others injured in an accident caused by the policyholder. It also covers legal fees and court costs if the policyholder is sued for the accident.

For example, if the policyholder causes an accident that results in the other driver sustaining injuries and requiring medical treatment, the policyholder’s bodily injury liability coverage will pay for the medical expenses up to the policy limits.

What is Property Damage Liability?

Property damage liability coverage pays for damages caused by the policyholder to another person’s property in an accident. This can include damage to vehicles, buildings, or other structures.

For example, if the policyholder causes an accident that results in the other driver’s car being damaged, the policyholder’s property damage liability coverage will pay for the repairs or replacement of the damaged vehicle up to the policy limits.

Liability Car Insurance Coverage Limits

The minimum liability coverage limits in California may not be sufficient to cover all costs in the event of an accident. Policyholders can choose to purchase higher limits to ensure they are adequately covered.

It is recommended that policyholders consider purchasing liability coverage with limits of at least:

It is important to note that higher coverage limits will result in higher premiums. Policyholders should choose a coverage limit that they can afford and that provides adequate protection.

Frequently Asked Questions

Is liability car insurance mandatory in California?

Yes, it is mandatory for all drivers in California to carry liability car insurance. Failure to carry this insurance can result in penalties and fines.

How much liability car insurance do I need in California?

The minimum liability coverage requirements in California are $15,000 per person / $30,000 per accident for bodily injury and $5,000 per accident for property damage. It is recommended that policyholders consider purchasing liability coverage with limits of at least $100,000 per person / $300,000 per accident for bodily injury and $50,000 per accident for property damage.

What does liability car insurance cover in California?

Liability car insurance in California covers damages and injuries to others that the policyholder causes while driving. It includes bodily injury liability coverage, which pays for medical expenses and lost wages incurred by others injured in an accident caused by the policyholder, and property damage liability coverage, which pays for damages caused by the policyholder to another person’s property in an accident.

Can I be sued if I have liability car insurance in California?

Yes, it is possible for a policyholder to be sued even if they have liability car insurance in California. Liability car insurance only covers damages and injuries to others that the policyholder causes while driving, up to the policy limits. If the damages or injuries exceed the policy limits, the policyholder may be sued for the remaining amount.

How much does liability car insurance cost in California?

The cost of liability car insurance in California varies based on several factors, including the driver’s age, driving record, and the coverage limits purchased. On average, liability car insurance in California costs $490 per year.

Can I purchase liability car insurance online in California?

Yes, many insurance companies offer the ability to purchase liability car insurance online in California. It is important to research different providers and compare coverage and pricing before making a decision.