One of the most frequent questions that Californians ask is, “What are the California state auto insurance laws for liability coverage?” The numbers are easy enough to understand, but there is much more you need to consider first. Here’s a look.
While the actual limits for liability coverage is quite low, you would be wise to increase them. Currently, California law requires every registered vehicle owner to carry at least 15/30/5 liability limits. So what do the numbers mean?
For bodily injury, a maximum of $15,000 would be paid for any one individual that is injured and you are at fault. $30,000 would be the total amount paid for all injured parties in an at fault accident. The $5,000 amount is what would be paid for all property damage you would be responsible for.
As you might imagine, these minimum California state auto insurance limits are extremely low. Any extensive injuries or property damage you may be responsible for in a car accident could easily exceed your coverage many times over.
Today’s medical costs and vehicle costs mean you could be open for a lawsuit very quickly and easily for any unpaid damages. Not something anyone wants.
You should take your time and really consider how much auto insurance to carry as a California resident. Increasing your liability limits is not that expensive.
Sure, California has some of the highest auto insurance rates in the country, but there are several discounts you may qualify for that will more than offset the costs.
The best thing to do is shop around and talk with several different insurance agents and companies.
You should also consider adding uninsured and under insured motorist coverage on your policy as well. This will help cover your medical bills in the event the other party is at fault and doesn’t have auto insurance, or doesn’t carry enough to cover your injuries.
Be sure to protect yourself and your family from financial disaster by carrying the proper amount of insurance on your vehicles. Get a good understanding of the California state auto insurance regulations and how they apply to you. It could really save you a lot of money in the long run.
By: Dennis Montgomery
Posts Tagged ‘State Auto Insurance’
California State Auto Insurance – What You Need To Know
October 8th, 2009State Auto Insurance – What are the Requirements?
October 6th, 2009Virtually all states within the U.S. have laws governing the minimum amount of auto insurance coverage you must have. In the states that don’t, have financial responsibility laws that state you have to be able to furnish proof of the ability to pay for both bodily and property damage resulting from an auto accident up to a certain minimum amount. The chart below indicates the mandatory minimum requirements state by state. The second first figure is the minimum amount of coverage required for all people injured in an accident. The first figure is the limit for one individual and the third is for property damage. All figures are 1000’s $. So, taking Alaska as an example, the minimum coverage is $100,000 for all persons injured in an accident up to a limit of $50,000 for one individual and $25,000 for property damage.
Alabama 25/50/25
Alaska 50/100/25
Arizona 15/30/10
Arkansas 25/50/25
California 15/30/5
Colorado 25/50/15
Connecticut 20/40/10
Delaware 15/30/10
D.C. 25/50/10
Florida 10/20/10
Georgia 25/50/25
Hawaii 20/40/10
Idaho 25/50/15
Illinois 20/40/15
Indiana 25/50/10
Iowa 20/40/15
Kansas 25/50/10
Kentucky 25/50/10
Louisiana 10/20/10
Maine 50/100/25
Maryland 20/40/15
Massachusetts 20/40/5
Michigan 20/40/10
Minnesota 30/60/10
Mississippi 25/50/25
Missouri 25/50/10
Montana 25/50/10
Nebraska 25/50/25
Nevada 15/30/10
New Hampshire 25/50/25 Financial Responsibility only
New Jersey 15/30/10
New Mexico 25/50/10
New York 25/50/10
North Carolina 30/60/25
North Dakota 25/50/25
Ohio 12.5/25/7.5
Oklahoma 25/50/25
Oregon 25/50/10
Pennsylvania 15/30/5
Rhode Island 25/50/25
South Carolina 25/50/25
South Dakota 25/50/25
Tennessee 25/50/10
Texas 25/50/25
Utah 25/50/15
Vermont 25/50/10
Virginia 25/50/20
Washington 25/50/10
West Virginia 20/40/10
Wisconsin 25/50/10 Financial Responsibility only
Wyoming 25/50/20
It must be stressed that these figures are the minimum required by law. It is generally recognized that more realistic figures would be $300,000 bodily injury protection per accident and $100,000 per person. Other options are available to increase your coverage. These include – Uninsured Motorist Coverage This coverage will pay you for bodily injury and property damage that you suffer as a result of an accident caused by an uninsured driver. Underinsured Motorist Coverage This coverage pays you for bodily injury and property damage that you suffer as a result of an accident caused by a driver who has insurance but whose coverage is less than your uninsured motorist coverage. Personal Injury Protection (PIP) This coverage (sometimes known as “no-fault” coverage) is for injuries that you and others may sustain in an auto accident irrespective of who caused the accident. It covers the cost of hospital and medical expenses incurred in treating injuries and other incidental expenses such as lost wages. Collision Coverage Coverage to pay for damages caused to your vehicle when involved in a collision with another vehicle or object. Comprehensive Coverage This pays for damage to your vehicle that is not the result of a collision, such as fire, theft, vandalism and flooding.
By: Colin R Cherry
