If you’re wondering how much auto insurance you need in California, the state insurance department provides the minimum allowable coverage limit. The minimum auto insurance requirement in California is 15/30/5. means your policy must have at least the following:
- $15,000 bodily injury per person
- $30,000 bodily injury per accident
- $5,000 property damage per accident
- $10,000 bodily injury per person
- $20,000 bodily injury per accident
- $3,000 property damage per accident
- fines of $100-200 plus penalty assessments for first offense
- fines of $200-500 plus penalty assessments for subsequent violations
- the possibility of impounding vehicles
- four year license suspension if after a collision (can be reinstated after one year if you provide proof of insurance to dmv)
Having auto insurance gives you protection while you travel, especially if you have an accident. Driving without insurance is also illegal in California. Your failure to show proof of insurance during a traffic stop can result in various penalties. these can range from a fine to having your license suspended or worse.
Reading: What is the minimum coverage for auto insurance in california
If you’re a low-income driver, you can purchase low-cost insurance under the California Automobile Assigned Risk Plan (CAARP). the minimum coverage requirement is 10/20/30. this means:
what does this minimum coverage mean?
Because California is an at-fault state, it means you are responsible for the other driver’s expenses for medical bills or property repairs if you cause an accident. A policy that meets California’s minimum auto insurance requirement of 15/30/5 means your provider helps cover medical expenses up to $30,000 for everyone injured in an accident, capped at $15,000 per person . They also help with property damage costs up to $5,000.
Realistically, being at-fault in an accident can result in much higher costs than are covered by a policy that meets California’s minimum auto insurance requirements. means you’ll have to cover the remaining amount out of pocket, which could severely deplete your savings.
See also: How to Make a Business Insurance Claim | Bionic
A CAARP low-cost policy follows the same format. having 10/20/3 liability limits means you are protected against costs of up to $20,000 for injuries sustained in an accident with a limit of $10,000 for each person. property damage up to $3,000 is also covered.
The cost of auto insurance in California is, on average, $1,429 per year. California is one of the few states that prevents companies from using credit scores to calculate rates. they use other factors, such as your age, driving experience, driving history, and where you live to set premiums.
It’s best to compare quotes from multiple providers, as they offer different rates for policies with similar coverage. Progressive offers the most affordable liability-only policy in California that meets the state’s minimum auto insurance requirements for $481 per year.
cheapest minimum auto insurance in california
These prices are only estimates based on rates for the average California driver and should not be used to compare insurance prices.
rates above are for a 40 year old california resident driver with good credit rating and a clean driving record of a 2010 toyota camry. all premiums are for policies that meet the minimum auto insurance requirements of California on 5/15/30.
If instead you’re looking for a policy that balances quality with affordability, moneygeek has also ranked the top auto insurance companies in california.
what is the minimum auto insurance requirement in california when renting a car?
See also: How to Pass the Insurance Exam | StateRequirement
Insurance requirements for auto leases in California are determined by the lender, not the state. Even if your policy limits meet California’s minimum auto insurance requirements, it may not be enough for your leasing business.
Most lenders require you to have full coverage auto insurance with increased liability limits of at least 100/300/50. If you want to know the specific requirements of your leasing company, it is best to contact them directly. in this way you will know detailed information on topics such as insurance requirements and payment conditions.
When determining how much auto insurance you need in California, minimum liability requirements aren’t the only thing to consider. moneygeek recommends increasing your limits to at least 50/100/50. it may increase your rate, but it gives you more protection down the road.
Although auto insurance is required in California, about 16.6% of its drivers remain uninsured. The probability of having a collision with an uninsured driver is relatively high: if they are at fault, they have no coverage to pay for your damages. makes buying uninsured motorist insurance a good investment despite not being included in California’s auto insurance requirements.
You need auto insurance in California if you want to drive legally on the state’s roads and highways. Failure to provide proof of financial responsibility can result in various penalties, such as:
To reinstate your license, you will need to purchase SR-22 insurance and keep it for an average of three years. Filing an SR-22 tells insurers that you are a high-risk driver and will result in higher annual premiums.
See also: What happens when you have a lapse in car insurance