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California Auto Insurance: Minimum Requirements Are Insufficient!

Car insurance varies from state to state. This is why it is essential to research the local laws as soon as possible when relocating to a new area. Have you recently moved in the Golden State? Here is an introduction to California auto insurance that you might find beneficial.

Auto liability insurance is a mandatory requirement for drivers in California, and for good reason. This type of insurance protects drivers from financial loss in the event that they are found responsible for an accident that results in property damage or injury to another person. However, it’s important to note that the minimum liability insurance limits in California may not be enough to fully protect you in the event of a serious accident.

Currently, the minimum liability insurance limits in California are 15/30/5. This means that the minimum amount of coverage required by law is $15,000 per person for bodily injury, $30,000 per accident for bodily injury, and $5,000 per accident for property damage. While these limits may seem like a lot of money, they may not be enough to fully cover the costs of a serious accident. Governor Newsom signed into law that Effective January 1, 2025 the minimum liability limits will be increasing to $30,000/$60,000/$15,000.  It is important to shop your auto insurance to make sure you are not over paying as each carriers rates vary.

In fact, medical bills and property damage costs can easily surpass these minimum limits in the event of a serious accident. For example, if you are responsible for an accident that results in multiple injuries, the medical bills alone could quickly add up to hundreds of thousands of dollars. If your liability insurance limits are only $15,000 per person and $30,000 per accident, you could be held responsible for the remaining balance.

Furthermore, if you are found liable for damages that exceed your insurance limits, you could be sued for the remaining balance. This could result in wage garnishments, asset seizures, and other financial consequences that could have a lasting impact on your financial wellbeing.

For these reasons, it’s important to carefully consider your auto liability insurance limits when selecting your policy. While it may be tempting to choose the minimum limits in order to save money on your premium, it’s important to remember that you could be putting yourself at risk in the event of an accident.

We recommend that you speak with your insurance provider to discuss your individual needs and determine the appropriate liability insurance limits for your situation. In addition, consider purchasing umbrella insurance, which can provide additional liability coverage beyond your auto insurance limits.

In conclusion, while auto liability insurance is an important protection for drivers, it’s essential to remember that the minimum liability insurance limits in California may not be enough to fully protect you in the event of a serious accident. By carefully considering your insurance needs and selecting appropriate liability insurance limits, you can help protect yourself from financial loss and ensure your peace of mind on the road.