California Auto Insurance State Minimum Requirements
California Auto Insurance State Minimum Requirements
California auto insurance is something that every driver needs to learn about before they hit the road. Being protected is only part of the issue. Being legally responsible is the most important element in purchasing auto insurance. The state requirements for California auto insurance are:
$15,000 for bodily injury or death per person
$30,000 for bodily injury or death per accident
$5,000 for property damage per accident
For those drivers who are eligible for the California Low Cost Automobile Insurance Program (LCA), the state minimum requirements are:
$10,000 for bodily injury or death per person
$20,000 for bodily injury or death per accident
$3,000 for property damage coverage
Having insurance is definitely better than having no insurance at all, but California auto insurance requirements are among the lowest in the country. These amounts aren't going to cover much of anything for most people, and especially not the property damage limits. Look at the cars around you on the road. How many of those cars are worth less than $5,000? If you cause an accident and total another car, you're responsible for that bill once the insurance does their part. Unless you've got an extra $10,000 or $20,000 lying around to pay off the other party, you might as well pay a little more for better coverage every month.
State minimum requirements aren't applicable to everyone. Any drivers who have a car that they lease or have purchased with an auto financing loan will have to have more insurance in most cases. The dealer or financing company will explicitly tell you how much insurance you need in order to keep your car finance situation with them in good standing. If at any time you drop your insurance or lower your coverage, they can take your car because it's not technically yours yet, anyway. Don't put yourself in this position.
California auto insurance requirements are kept low because the state has such a problem with uninsured drivers. They would rather have a lot of drivers with a little bit of insurance than fewer drivers who have great insurance. However, just because the state says you only need a certain amount, that doesn't mean that you should settle for that type of California auto insurance. Make sure that you get at least the state minimum coverage, but find an insurance policy that gives you the financial protection that you deserve and can afford so that you can have peace of mind.
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