Minimum Coverage Requirements

Most states require drivers to carry a minimum level of liability insurance.  Liability insurance minimum requirements vary by state and can be determined by visiting your state’s department of motor vehicles website.

Comprehensive coverage (other than collision), uninsured motorist, medical payments and collision insurance are not required by law though it’s highly recommended that you consider purchasing additional coverage to protect against the risk of major financial loss.

In California, the statutory minimum limits for liability insurance are:

Bodily Injury Liability

• $15,000 for death or injury of any one person, any one accident.
• $30,000 for all persons in any one accident.

Property Damage Liability

• $5,000 for any one accident.

Liability Minimums Explained

When your car is in an accident for which you are found legally liable, bodily injury (BI) liability covers your liability to others for injuries to them.  Property damage (PD) liability covers your liability for damage to someone else’s property. A policy with the minimum BI of $15,000/$30,000 and PD minimum of $5,000 will pay out as follows:

• The maximum limit for one person’s injuries, medical expenses, etc. is $15,000 under the bodily injury portion.
• If two or more people are injured, the maximum limit for the accident will be $30,000.
• The maximum limit for damage to other people’s property (their car, their fence, etc.) will be $5,000.

What Happens if I Don’t Carry Liability Insurance?

In California, driving without insurance is a serious offense.  Failure to show proof of insurance when requested may result in fines, a suspended license or a canceled registration.  Remember, driving is a privilege … not a right. If you are stopped by a police officer and asked for proof of insurance and you can’t produce it, you’ll be hit with a hefty fine and citation.  It’s possible that you can have the ticket nullified by showing proof of insurance in court, but you’ll still be forced to pay administrative fees and compensate your attorney.

Why Is It All Up to Me?

It is not the responsibility of the insurance company or agent/broker to determine either the type or amount of coverages you need. You and the agent/broker should have an open exchange about the coverages that are available so that you can determine what best fits your needs. Discovering that you don’t have adequate auto insurance coverage should happen before you are involved in an accident—not after!  Now that you know what California Law requires, you should determine whether you need coverage above the legal minimum in order to protect your assets. “How much is this going to cost me?” should not be the only question in deciding how much insurance you need. There are a variety of options regarding types of coverage and policy limits so you should shop carefully.

Ask yourself: Do I Need Higher Liability Limits?

Since you may be personally responsible for damages above the policy limits, you should consider purchasing liability insurance with higher limits than the minimum required by law. With the increased cost of hospital stays, medical care, and car repair, it may be well worth considering the extra premium to purchase higher limits of coverage.

Want to compare insurance company rates for liability insurance?  Visit our quotes page and get started now.

California minimum liability insurance is the minimum insurance requirement.  You’ll need at least a minimum liability insurance coverage.