car insurance California

SUMMARY:              CALIFORNIA CAR INSURANCE

Car Insurance California: Car insurance is a legal requirement in California. At a minimum, drivers must hold liability insurance. The state, however, offers discounts and a program for low-income drivers.

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California Car Insurance:

Are you shopping for affordable car insurance quotes? California insurance companies are required to offer you a good driver's discount if you have a clean driving record. Read more to learn about California car insurance rates, laws, and programs. 

California Car Insurance Requirements:

California law requires that you have a way to cover costs related to damages or injuries you may have caused in a car accident. Purchasing liability car insurance is the simplest and most common way people choose to meet this requirement.  

The minimum amount of liability insurance you must have on your policy is

• $15,000 for injury/death to one person.
• $30,000 for injury/death to more than one person.
• $5,000 for damage to property.  

Other Car Insurance CoverageWhile liability coverage is the only type of car insurance coverage you are required to carry in California, there are several other types of coverage available to you, including: 

1. Comprehensive coverage – This coverage insures you against damages that might occur to your car that do not involve traffic accidents such as theft-related damage. 
2. Collision coverage – This insures you against damages to your car that occur as a result of a traffic collision such as an accident with another driver.
3. Medical and funeral services coverage.
4. Uninsured/Underinsured motorist coverage – According to the latest statistics from the California Department of Insurance (CDI), in 2004, 14.43% of California drivers had no car insurance. Uninsured/underinsured coverage can cover damages caused by one of these drivers.
5. Rental car coverage.
6. Towing and labor coverage.

 Note: Adding comprehensive and/or collision coverage is generally optional. However, if your car is being financed, your lending or leasing company will require you to purchase comprehensive and collision coverage.

Other Forms of Financial Responsibility

Buying car insurance is the most common way to fulfill your financial responsibility requirements, but it isn't your only option.  

Other options to meet the requirement include:

• A $35,000 cash deposit with the CA Department of Motor Vehicles.
• A Certificate of Self-Insurance from the DMV.
• A surety bond of $35,000 from any company licensed to do business in CA.