California Guide to Auto Insurance

• Average auto liability insurance premium - $391.24
• Average auto collision insurance premium - $391.24
• Average auto comprehensive insurance premium - $263.64
• Average auto combined insurance premium - $765.2

California’s Compulsory Financial Responsibility Law requires every driver and owner of a motor vehicle to be financially responsible for their actions. The statutory minimum limits of liability insurance in California are as follows:

Bodily Injury

• $15,000 for death or injury of any one person, any one accident.
• $30,000 for all persons in any one accident.

Property Damage

• $5,000 for any one accident

There are four ways to accomplish financial responsibility:

1. Coverage by a motor vehicle or automobile liability insurance policy;
2. A cash deposit of $35,000 with the Department of Motor Vehicles (DMV);
3. A certificate of self-insurance issued by DMV to owners of fleets of more than 25 vehicles; or
4. A surety bond for $35,000 obtained from an insurance company licensed to do business in California.

All California drivers and owners must have at least the statutory limits of minimum liability insurance or an approved alternative way to pay for injury or property damage they may cause. Penalties are very severe for non-compliance with this section of the vehicle code.

When your car is in an accident for which you are found legally liable, bodily injury (BI) liability covers your liability to others for injuries to them. Property damage (PD) liability covers your liability for damage to someone else’s property.

A policy with bodily injury of $15,000/$30,000 and property damage of $5,000 will pay out as follows:

• The maximum limit for one person’s injuries, medical expenses is $15,000 under the bodily injury portion;
• If two or more people are injured, the maximum limit for the accident will be $30,000;
• The maximum limit for damage to other people’s property (their car, their fence, etc.) is $5,000.

Comprehensive coverage (other than collision), uninsured motorist, medical payments and collision insurance are not required by law.

Automobile Insurance Resources - Where to Call When You Need Assistance

• Online Auto Insurance Agents in California

California Low Cost Automobile Insurance Program
For more information about this state-sponsored plan for low-income drivers, call (800) 622-0954

California Automobile Assigned Risk Plan (CAARP)
For more information about the State’s insurance plan for high-risk drivers, call (800) 622-0954

California Department of Insurance
300 South Spring Street, South Tower
Los Angeles, CA 90013
800-927- HELP (4357)

California Department of Motor Vehicles
2415 1st Avenue Mail Station F101
Sacramento, CA 95818
800-777-0133

California Automobile Assigned Risk Plan
595 Market St., #1250
San Francisco, CA 94105
(800) 622-0954 Toll-free within California only

California Car Insurance: Requirements Every Motorist Should Know

There’s no doubt about it, California provides a cornucopia of sights and sounds for those who have not lived there long enough to become jaded; however, California’s population is steadily growing and as a result there are more drivers on California roads then ever before. This means that it is absolutely essential for every motorist to carry a quality car insurance policy.

Like most states CA has made it a requirement for every driver to possess liability insurance. Liability will pay for damages inflicted to the body and vehicle of the driver whose vehicle was struck by the insured. The minimum level of coverage is as follows: fifteen thousand dollars for medical expenses if there was only one occupant of the vehicle, thirty thousand dollars for the combined expenses of all occupants of the vehicle and five thousand dollars to pay for additional property damages, including vehicle repair. This is considerably less than is required in other areas of the country.


While liability will pay for the damages to the other driver’s vehicle it leaves the driver responsible for the accident holding the bag for their own repairs. Collision and comprehensive insurance exists to pay for these costs. Aside from accidents with other vehicles this also allows the insured to have necessary repairs made at their insurance company’s expense (less the amount of their deductible) in the event that damages were caused by other factors, such as rolling off of an icy road or being struck by a deer.

Uninsured/underinsured motorist coverage will pay for repairs to the vehicle of the insured and any medical expenses incurred as a result of injury suffered by the insured in the event that they are involved in either a hit and run or an accident with a driver who does not carry insurance or whose level of coverage is insufficient to pay for all expenses.

Neither collision and comprehensive insurance or uninsured/underinsured motorist coverage are required for CaA drivers; however, they are strongly recommended, as well as carrying a liability policy greater than the minimum required. More information regarding California auto insurance can be obtained by contacting the California Department of Insurance in Los Angeles at 800-927-HELP (4357) or by visiting their website, http://www.insurance.ca.gov.