To ensure that all drivers can provide for financial and medical expenses resulting from an accident, most states require drivers to purchase auto insurance to operate a vehicle. If you are new to California, you might not know what coverage is necessary to purchase. The last thing you want to happen to you is getting caught with the wrong coverage.
VIP 360 has compiled a short and easy guide to lead you in the right direction when it comes time to purchase auto insurance. Let’s review what you need to know about insurance laws and requirements in California.
The state of California requires that all motor vehicles registered in the state are covered by a minimum level of liability auto insurance. Every driver who operates a vehicle statewide, including those with out-of-state licenses or unlicensed drivers, are required to follow the minimum insurance requirements.
You are required to have the following types of liability coverage in California:
- Bodily Injury Liability (BI)– When you are found legally responsible for a car accident, bodily injury liability coverage is the part of your insurance policy that pays for the costs associated with injuries to the other person or people involved. This coverage also provides a legal defense if you are sued for damages. You are required to possess bodily injury coverage of at least $15,000 per person, and up to $30,000 per accident in California.
- Property Damage Liability (PD)- Property damage liability coverage is required by law in most states. It typically helps cover the cost of repairs if you are at fault for a car accident that damages another vehicle or property such as a fence or building front. Property damage liability coverage usually does not cover damage to your own vehicle. In California, drivers are required to have a minimum of $5,000 in Property Damage Liability coverage.
Proof of Insurance
It is also important to carry proof of your insurance policy with you whenever you are behind the wheel in California. Make sure to carry an insurance ID card that lists the name of the policyholder, insured vehicle, policy number, and the start and end dates of your policy.
When you are pulled over without enough evidence of insurance, you could get your vehicle impounded and your driver’s license or vehicle registration could be suspended. Fines in California can range from $100 – $200 for the first offense, and $200 – $500 for each subsequent offense within three years of the first.
These are the main insurance laws and requirements in California. Contact a professional from VIP 360 to get up-to-date information on everything that you will need to know about car insurance requirements in California. In search of better coverage with lower rates? Call VIP 360 Insurance today to see how we can help you!