Car insurance in California is a contract where you pay a premium to a company, and they agree to pay for specific financial losses (like repairs or medical bills) resulting from a car accident, as outlined in your policy. California law requires all drivers to carry liability insurance to cover injuries and property damage they cause to others. The system is designed to protect you financially, but the specifics depend on the coverage types you select.
The core of California's requirement is liability coverage, with minimum limits set by law. These are often expressed as 15/30/5:
- $15,000 for bodily injury per person.
- $30,000 for bodily injury total per accident.
- $5,000 for property damage.
These minimums are often considered insufficient to cover the costs of a serious accident. Therefore, most drivers opt for higher limits and additional coverages.
| Common Coverage Type | What It Typically Covers | California Requirement? |
|---|
| Bodily Injury Liability | Medical bills, lost wages, pain and suffering for people you injure. | Yes, minimum $15,000/$30,000 |
| Property Damage Liability | Repair or replacement of other drivers' vehicles or property you damage. | Yes, minimum $5,000 |
| Uninsured/Underinsured Motorist | Your medical bills if hit by a driver with no insurance or insufficient coverage. | Offered, but you can reject in writing |
| Medical Payments (MedPay) | Your and your passengers' medical expenses regardless of fault. | No |
| Comprehensive | Damage to your car from theft, vandalism, fire, or natural disasters. | No |
| Collision | Damage to your car from a collision with another vehicle or object. | No |
After an accident, you file a claim with your insurance company. An adjuster will investigate to determine fault and the cost of damages. California uses a "fault" system, meaning the driver who causes the accident is responsible for the resulting costs. Your own insurance will pay for damages to your vehicle if you have collision coverage, but your insurer will typically seek reimbursement from the at-fault driver's insurance company.
Your premium—the amount you pay for the policy—is determined by factors like your driving record, age, location, the type of car you drive, and the coverage levels you choose. It's crucial to shop around and compare quotes to find the best balance of price and protection for your needs.
