California Auto Insurance

No matter what state you live in, car insurance is an important part of being a responsible driver. In fact, it is so important that the majority of states have made it a mandatory requirement.

Car insurance protects all drivers on the road from many financial and legal consequences. However, some drivers have difficulty paying for the required or needed amounts of coverage on their vehicles.

If you are one of these drivers, or someone who simply wants to find out if you could be paying less for car insurance, try using an online car insurance price comparison tool. These convenient calculators make it easy and simple to compare several different car insurance companies, policies, and rates in one easy place.

Start comparing auto insurance rates now using our FREE online price comparison tool above!

Minimum California Car Insurance Requirements

California is one state where car insurance is a legal requirement. Under the voter-enacted California Compulsory Financial Responsibility Law, all California drivers need to take financial responsibility for their vehicles by showing proof of insurance to law enforcement.

Proof of insurance shows that the driver has the ability to minimally pay for damages and injuries caused by the use of their vehicle or the borrowing of an uninsured vehicle.

Liability insurance is a type of legally required coverage in the state of California. Drivers in this state must have a minimum coverage of:

• $15,000 for bodily injury and death claims for one person
• $30,000 for bodily injury and death claims for more than one person injured in an accident
• $5,000 for the damage to another party’s property per accident

Options for Complying with Financial Responsibility Laws

There are a few different options to be compliant with the California care insurance laws. These options are:

• Purchase the minimum amount of car insurance coverage from a company licensed in the state
• Pay $35,000 in cash to the DMV
• Purchase a surety bond for $35,000 from a California insurance company

The Limitations of Liability Coverage

Drivers in the state of California should know that even if they are meeting the requirements for the mandatory amounts of insurance coverage, they may not be fully covered in the event of an accident. Liability insurance only provides for damages you cause to other people or property.

Liability will not cover any damages to your vehicle or medical payments for treatment you may need. For some people in certain financial situations, liability may be all they need or desire for insurance coverage.

For instance, people with older cars or cars that are not worth much may choose to only carry liability. However, before making such a decision, you should weigh your finances and options carefully.

Collision and Comprehensive Coverage

Although not legally mandated in the state of California, it is a good idea for drivers to consider collision and comprehensive coverage on their car insurance policies. Both of these policy types generally require a deductible between $50-$1,000 and you can choose the specific amount.

Remember that a higher deductible usually means a lower premium which can save you money over time, as long as you have the means to pay your deductible if you should need to file a claim.

Collision coverage pays for damage to your vehicle in the event of an accident with another vehicle, building, or object such as a light pole or tree. Comprehensive coverage will pay for damages to your car in a variety of situations, such as:

• Natural disasters
• Flooding
• Fire
• Theft
• Vandalism
• Wind, hail, or other weather damages
• Hitting an animal

Uninsured/Underinsured Motorist Coverage

Another type of car insurance coverage that is not a legal requirement but can be wise to have is uninsured/underinsured motorist coverage. Unfortunately, many California drivers do not obey the law and either have no car insurance at all or only have the bare minimum which may not completely cover all of the physical or property damage in an accident.

In these cases, uninsured/underinsured motorist coverage on your car insurance policy will pick up the cost where the other driver’s insurance, if any, left off. This coverage is a minor expense on your premium compared to liability coverage and gives many drivers peace of mind.

Here are a few points to note about this coverage type:

• You can only file a claim under this policy type of you were not at fault in the accident
• If you cannot locate the offending driver, such as in a hit-and-run accident, you must file a police report as soon as possible
• This coverage also protects you as a pedestrian or as a bicyclist

Medical Payments Coverage

Medical payments coverage, sometimes referred to simply as Med Pay, is not a requirement in California as it is in some states. However, this coverage can be helpful if you are in an accident as it provides money for paying medical bills, funeral expenses, lost wages, and necessary household help.

No matter who is at fault for your accident, your own Med Pay insurance will be paying on your claim as California is a no-fault insurance state.

In order to file a Med Pay claim, your expenses must be necessary, reasonable, and stem from injuries you sustained in the car accident. Drivers should check their policy carefully as some exclusions may apply.

What accidents must be reported in California?

If you have just had a car accident in the state of California you may be wondering what to do. It is vital for drivers in California to know and understand their legal obligations in such a situation.

In this state, a driver who is involved in an auto accident must report the crash when either or both of the following events occur:

• The accident resulted in damage to vehicles or other real property.
• The accident resulted in injury to or death of anyone, including passengers, drivers, bicyclists, and pedestrians.

As per California Vehicle Code, accidents should be reported to the police department of the city where the accident took place. If the accident occurred in an unincorporated area then it should be reported to the local headquarters of the California Highway Patrol.

California laws also state that accidents should be reported as soon as possible. To protect yourself and the other parties involved, it is best to report the accident as soon as safely possible. Within 24 hours of the accident, the driver should submit a written report to the local police department or California Highway Patrol.

Failure to report an accident or to report it in a timely manner is a misdemeanor in the state and can be punishable with up to six months in prison, a fine of as much as $1,000, or both.

Reporting Accidents to Your Car Insurance Company in California

Depending on the circumstances surrounding your car accident, you should report it to your insurance company as soon as possible. In some cases, your insurance company can deny any coverage on your claim if you wait too long to report it.

Keep in mind that the sooner your car insurance carrier knows about your accident, the sooner they can help you defend any claims that may come against you as a result of the accident.

Even if your car accident didn’t meet the requirements to be mandatorily reported in the state of California, you are likely still required to report it to your car insurance company.

Consequences in California for Not Having Car Insurance

In order to protect yourself legally and financially, it is extremely important that you have at least the minimum amount of insurance coverage in the California. Not complying with car insurance laws can lead to some serious ramifications including:

• Fines of up to $500 plus penalty assessments
• Arrest and imprisonment
• Convictions
• Impoundment of your vehicle

Because driving is a responsibility and a privilege, it should not to be taken lightly. Drivers in California should ensure that they are maintaining the minimum amounts of required car insurance and consider if they may need additional coverage types to protect themselves even further.

If you need to stretch your hard-earned dollar when it comes to car insurance, try using an online car insurance price comparison tool. These tools can help you make sure you are getting the best rates possible while allowing you to get the coverage you need.

Start comparing auto insurance rates now using our FREE online comparison tool below!