California Car Insurance Requirements
Minimum California car insurance
Auto liability insurance is essential coverage. It pays for damage and injuries you cause others. If you don't have enough of it to cover accident bills you can be sued for the rest. That's why it's often wise to buy more than what the state requires. Also, liability insurance does not cover damage to your own car. Let's sort through the California car insurance options so you can choose the best insurance for you.
Minimum liability insurance in California:
- $15,000 bodily injury per person
- $30,000 bodily injury per accident
- $5,000 property damage per accident
This is often written as 15/30/5.
Uninsured/underinsured motorist (UM/UIM) coverage:
UM/UIM covers you if you're hit by a driver who has no liability insurance or not enough. The choices in California can be tricky. Let's untangle them:
- Uninsured/underinsured motorist coverage (UM/UIM) coverage is not required in California. Car insurance companies must offer it by law but you can reject it in writing.
- If you buy UM/UIM, the minimum coverage limits are $15,000 per person/$30,000 per accident for injuries.
- In California you can also buy uninsured motorist property damage (UMPD) coverage. It's not required. It pays your property damage if you're hit by an uninsured driver.
- If you buy UM and don't have collision coverage, the UMPD limit is $3,500 or the value of your vehicle, whichever is less. So if the value of your car is $3,000, the maximum UMPD coverage you can buy is $3,000.
- If you buy both UMPD and collision coverage and are hit by an uninsured driver, your UMPD will pay only the amount of your collision deductible, up to $3,500.
More: Cheap car insurance in California
Comprehensive coverage: Not required by the state. However, if you have a car loan or lease you're probably required to have it. For theft of your vehicle or damage caused by hitting an animal, hail, flood, fire, vandalism, explosions and falling objects.
Collision coverage: Not required by the state. However, if you have a car loan or lease you're probably required to have it. For damage to your vehicle caused by hitting another car or an object, like a pole.
Rental reimbursement: Not required by the state. Pays for a rental car if your vehicle is being repaired due to an accident covered by comprehensive or collision insurance. It may have a daily maximum and also a total limit.
Medical payments (MedPay): MedPay is available in California but not required. It covers medical bills and funeral expenses for you and your passengers no matter who was at fault. If you decide to buy MedPay, the minimum coverage in California is $1,000 per person injured. You can buy more.
In California you must show an insurance ID card (or other proof of financial responsibility) when:
- Law enforcement requests it
- You renew vehicle registration
- Your vehicle is involved in a car accident
Penalties for not having car insurance in California
- First offense: $100 to $200 fine plus penalties
- Second offense within three years: $200 to $500 fine plus penalties and possible impoundment of vehicle
Source: Property Casualty Insurers Association of America
Consumer complaints against large auto insurance companies in California
The department of insurance in each state handles complaints against insurance companies and supplies numbers to the National Association of Insurance Commissioners. A national "complaint ratio" number is meant to show the number of complaints against a company relative to the insurer's size of business. Shown below are national complaint ratios for the largest auto insurance companies in California.
Low cost auto insurance in California
If you cannot afford liability insurance in California, you may be eligible for the California Low Cost Automobile Insurance Program. Call 1-866-602-8861 or visit MyLowCostAuto.com to find out if you qualify.
Updated June 29, 2018