California Car Insurance
Regulatory requirements for car insurance in California
Under California state law, every driver is required to hold Bodily Injury Liability coverage of a minimum of $15 000 per person up to a maximum of $30 000 per accident, in addition to at least $5000 of property damage insurance.
Minimum California auto insurance coverage required:
| Bodily Injury Liability Coverage (minimum): | $15 000 / $30 000 |
| Property Damage Liability Coverage (minimum): | $5000 |
The state of California uses a Tort system. According to this system, at least one of the parties involved in an automobile accident must be found to be at fault. This means that the party found at fault and their car insurance company will be responsible for all damages.
Although not mandatory in California, it is also recommended to purchase uninsured/underinsured motorist coverage for bodily injuries. This coverage will protect you in cases where underinsured or uninsured driver may cause an accident and is unable to meet payments for potential damage and/or injury.
In the year 2010, car insurance premiums for Californians averaged at $1308, while the national average premium was $1578.
In the past few years there has been an evident shift in car insurance rates within California. This is why buying car insurance in California at this time is extremely worthwhile, and may save you hundreds of dollars each year. Comparing average car insurance premiums between 2010 to 2009, shows a decrease of 21%. A smaller decrease of 6% can also be observed from 2008 to 2009.
The law in California requires every issued car insurance company/agent to provide potential customers with a cost estimate of its lowest priced personal auto insurance at the limits requested by the customer, and for which he/she is capable of.
Driving without Liability car insurance in California – penalties
By law, judges in California may suspend the driving license of road violators. If you provide false evidence of auto insurance coverage and your driver’s license is suspended, the suspension cannot be removed until you demonstrate genuine Proof of Insurance.