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California Auto Insurance Laws and Requirements
Each state requires registered drivers to carry a certain amount of Minimum Liability Coverage auto insurance.
California mandates all drivers in a household to be covered by liability insurance and have proof of insurance in the vehicle with them at all times.
Alternatively, drivers can cover themselves with cash deposit – not less than $35,000, a vehicle liability bond filed with the California DMV, a certificate of self-insurance issued by DMV to fleet owners of 25 or more vehicles, or a surety bond of $35,000 from a California-licensed insurance company.
California Minimum Liability Coverage
Each state sets its own minimum liability amounts. In California they are as follows:
Bodily Injury for One Person: $15,000
Bodily Injury for All Injuries: $30,000
Property Damage: $5,000
California Uninsured/Underinsured Motorist Coverage
Some states require drivers to carry Uninsured/Underinsured (UM/UIM) motorist coverage. This protects a driver in case they are involved in an accident and the other person is not adequately covered by an auto insurance policy.
California does not require this coverage but highly recommends purchasing at least $50,000 worth of coverage or as much as you can afford.
No Fault Insurance
In California, you are not required to carry no-fault insurance. California is a Tort state meaning that the driver at fault must pay a victim’s medical expenses. Further, the victim can also pursue compensation for additional lost wages as well as pain and suffering.