Car insurance is required in 48 states, and California is one of them. Due to the large population in California, and the many busy and dangerous roads, the state is very serious about auto insurance. From offering affordable options to low-income drivers, to mandating discounts for good drivers, California does a lot to make sure that all cars on the road can be insured.
Not only do all vehicles that are driven or parked on public roads require insurance, but there are requirements for what that insurance must be. The state mandates that drivers carry a minimum level of insurance when using public roads, to make sure that all drivers are protected. While many auto insurance providers offer policies with more coverage than the minimum, they cannot legally offer less.
What are the car insurance requirements in California?
In California, bodily injury liability coverage is required, and must cover at least $15,000 per person, and $30,000 per accident. Property damage liability coverage is also required, with a minimum coverage of $5,000.
Uninsured motorist coverage is not required, but still has minimums for if it is offered. Uninsured motorist bodily injury coverage must cover a minimum of $15,000 per person, and $30,000 per accident, while uninsured motorist property damage coverage must cover at least $3,500.
Collision and comprehensive coverage are not required, nor do they have minimums for when they are offered.
Are there any exceptions to the car insurance requirements?
There is one exception to these financial requirements. The state offers the California Low Cost Auto Insurance (CLCA) Program, which helps provide car insurance to drivers who cannot afford standard premiums. While the CLCA Program insurance is technically provided by car insurance companies, the state handles eligibility, cost, and financial requirements.
Under the CLCA Program, bodily injury liability coverage and uninsured motorist bodily injury coverage must cover up to of $10,000 per person, and $20,000 per accident, while property damage liability coverage provides coverage up to $3,000 per accident. The CLCA Program is the only exception to the California car insurance requirements.
The state requirements for auto insurance in California are designed to make sure that insurance companies provide drivers with adequate coverage, and to make sure that drivers have enough financial responsibility should they be involved in an accident. By enacting these requirements, California roads are a more fiscally safe place for drivers to be.