Average Cost of Car Insurance in California

Car insurance policies differ from state to state. In California, the California's Compulsory Financial Responsibility Law makes it mandatory for every owner and driver of a motor vehicle to be financially insured and responsible for their actions. All drivers and owners of automobiles in California must at least possess the statutory limits of minimum liability car insurance or a sanctioned alternative means of paying for property damage or injury that a driver may cause. The penalties are very severe for non-compliance with the various sections of the vehicle code.

If you are not able to find a company that will provide you with car insurance in California, you can get liability coverage through the California Automobile Assigned Risk Plan (CAARP). This plan is designed for drivers who fail to obtain insurance from non-standard and acknowledged car insurance companies. This plan is also meant for drivers who do not qualify as good drivers. The rates used under this plan are the same regardless of the car insurance company you choose. This plan also offers installment options.

The basic car insurance coverage in California includes:
• Bodily Injury liability per accident-- $15,000/30,000 Limit
• Property Damage liability per accident-- $5,000

In addition to the above, the required limits for drivers under the CAARP are $10,000/$20,000/$3,000 Limits

If your car is involved in an accident and you are found to be legally liable, the Bodily Injury (BI) liability policy covers your liability for injuries to others whereas the Property damage (PD) liability policy covers the liability for damage to others’ property.

The compulsory minimum limits of liability car insurance in California are as follows:

  • Property Damage: needs to include $5,000 for any one accident.
  • Bodily Injury: $30,000 for all persons in any one accident and $15,000 for injury or death of any one person in any one accident.
  • A policy with property damage of $5,000 and bodily injury of $15,000/$30,000 will pay out as follows:

- If two or more people are injured, the maximum limit for the accident will be $30,000;

- If a single person is injured, the maximum limit for one person's injuries is $15,000 under the bodily injury portion;

- The uttermost limit for damage to other people's property such as car, fence, home and so on is $5,000.

The comprehensive coverage (excluding collision), uninsured motorist, collisions insurance and medical payments are not termed as mandatory under the California Financial Responsibility Law.

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