California Car Insurance

California’s financial responsibility laws require drivers to have, at a minimum, liability automobile insurance. Liability insurance protects drivers from having to pay out of pocket for damage and injuries that they cause during collisions. Drivers have the option of getting additional protection for themselves and their property as well. Provided below is the required amount of insurance that all California drivers must have:

Required Coverages in California:

  • Bodily Injury Liability Per Person: $15,000
  • Bodily Injury Liability Per Accident: $30,000
  • Property Damage Liability: $5,000

According to the California Department of Insurance, there are three ways in which California drivers can establish financial responsibility. They can get a policy from their choice of auto insurance companies in California, deposit $35,000 with the DMV, or obtain a surety bond of $35,000 from a licensed insurance company. For owners of more than 25 vehicles, there is also the option of self-insurance.

Driving uninsured can lead to fines and penalties. Uninsured drivers will face citations, and may end up get their licenses suspended. The Department of Insurance reminds drivers that they must keep proof of insurance in their vehicles at all times.

Determining Your Rate in California

Auto insurance quotes in California are determined by multiple factors. Companies look at the driver’s age, sex, and marital status, and also take into consideration the vehicle’s age, make, and model. The driver’s credit history and the previous claims made against the vehicle play a part in determining rates as well. The average rate for car insurance in California is $754, according to the Insurance Information Institute, which is lower than the national average of $785.

The Department of Insurance recommends that drivers ask insurance companies about any discounts they may offer. Companies may give discounts to drivers that have good grades, good driving records, and/or vehicles that have additional safety features. To find out if you qualify for a discount, talk to your insurance provider.