California Auto Insurance Coverages Explained

In California, auto insurance policies offer various coverages to protect drivers from financial responsibility and damages in accidents. The main types include Liability, Uninsured/Underinsured Motorist, Collision, and Comprehensive coverage. Additionally, there's Medical Payments coverage and optional coverages like Rental Car and Gap insurance. 

Here's a breakdown:

1. Liability Coverage:

• This is the legally required minimum in California. 

• It covers the other party's damages (bodily injury and property damage) if you are at fault in an accident. 

• In California, the minimum auto insurance coverage required for drivers will increase starting January 1, 2025. The new minimums are: $30,000 for bodily injury or death per person, $60,000 for bodily injury or death per accident, and $15,000 for property damage per accident. 

• Traditionally, coverages are typically written as a combination of numbers, like 15/30/5, representing $15,000 per person for bodily injury, $30,000 per accident for bodily injury, and $5,000 for property damage. 

• California's current minimum liability coverage is 30/60/15 as of January 1, 2025. 

2. Uninsured/Underinsured Motorist Coverage (UM/UIM):

• Protects you if you're hit by a driver with no insurance or insufficient coverage. 

• Includes both bodily injury (UMBI) and property damage (UMPD) coverage. 

• UMC must be offered, but you can waive it, though it's recommended to have the same limits as your liability coverage. 

• UMPD covers damage to your car up to $3,500 if the at-fault driver is identified. 

3. Collision Coverage: 

• Covers damage to your vehicle in an accident, regardless of who's at fault.

• The cost is based on your vehicle's value and is usually required if you're financing or leasing.

• You choose a deductible (the amount you pay out-of-pocket before the insurance kicks in).

4. Comprehensive Coverage:

• Covers damage to your vehicle from things other than collisions, like theft, vandalism, fire, or hitting an animal. 

• Like collision, it's often required for financed or leased vehicles. 

• It also has a deductible. 

5. Medical Payments Coverage: 

• Covers medical expenses for you and your passengers injured in an accident, regardless of fault.

• It's a relatively low-cost coverage that can be helpful for minor injuries.

6. Optional Coverages:

• Rental Car Coverage: Helps pay for a rental car while your vehicle is being repaired. 

• Gap Insurance: Covers the difference between your vehicle's value and what you owe on a loan or lease if it's totaled. 

• Personal Injury Protection (PIP): Similar to medical payments but may also cover lost wages. 

• Emergency Roadside Assistance: Provides towing, jump-starts, and other roadside services. 

7. Full Coverage:

• Typically refers to a combination of liability, collision, and comprehensive coverage, often with higher limits. 

• It's important to understand your specific needs and choose coverages that align with your situation. 

You must carry evidence of insurance in your vehicle at all times and it must be provided when:

• Requested by law enforcement.

• You are renewing the vehicle registration.

• The vehicle is involved in a traffic collision.

Here are the types of acceptable insurance:

• Motor vehicle liability insurance policy.

• Cash deposit of $75,000 with DMV.

• DMV-issued self-insurance certificate.

• Surety bond for $75,000 from a company licensed to do business in California.

For information regarding cash deposits or self-insurance, contact DMV Insurance Unit at (916) 657-6677 and select Option 3.

To locate a company that issues surety bonds, contact the Department of Insurance at insurance.ca.gov or by calling 1-800-927-4357.

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