Are you confident that your current car insurance policy meets California's updated legal standards? You might be surprised to learn that many drivers are unknowingly underinsured and at risk of non-compliance, especially after the major changes introduced by Senate Bill 1107.
This guide breaks down the California auto insurance requirements, including recent policy updates, minimum liability coverage, optional protections like uninsured motorist coverage, the SR-22 certificate, and affordable options through the California Low-Cost Auto Insurance Program (CLCA).
Why Auto Insurance Matters in California
Auto insurance isn't just an administrative requirement; it's your primary protection from financial ruin in case of a crash. With over 27 million licensed drivers in California, accidents are inevitable. Being underinsured or uninsured can lead to severe legal and financial consequences. Unfortunately, many drivers are unaware of the minimum proof of financial responsibility requirements or mistakenly believe they're covered when they're not. This misunderstanding could cost them thousands or leave them legally exposed.
Minimum Liability Insurance Coverage California
In California, drivers are required to carry minimum auto insurance liability coverage. As a result of Senate Bill 1107, these minimums have been updated to reflect modern costs.
The new minimum liability coverage requirements are
- $30,000 for bodily injury or death per person
- $60,000 for bodily injury or death per accident
- $15,000 for property damage per accident
Senate Bill 1107: California's New Auto Insurance Law
Senate Bill 1107 increases the minimum automobile liability insurance requirements for drivers in California. This law was introduced to provide better financial protection for drivers, ensuring they can receive appropriate care after a car accident.
Additionally, SB 1107 includes a cost-of-living adjustment clause, meaning the minimum liability limits will increase again starting in 2035 to align with inflation and healthcare cost growth. This ensures that accident victims can recover fair compensation as costs rise.
Optional but Highly Recommended Coverages
While California law only requires liability coverage, several other types of insurance are highly recommended for comprehensive protection.
Uninsured/Underinsured Motorist (UM/UIM) Coverage:
This coverage helps pay for your injuries and damages if you're hit by a driver with insufficient or no insurance. Considering that approximately 15% of California drivers are uninsured, this coverage is essential. If you are hit by a driver who doesn't have enough coverage to pay for your damages, your underinsured motorist coverage can cover the remaining amount.
Collision Coverage:
Collision coverage helps pay for the repair or replacement of your vehicle if it is damaged in an accident, regardless of who is at fault.
Comprehensive Coverage:
This offers protection from damage to your vehicle caused by theft, fire, falling objects, accidents involving animals, and weather-related events.
Medical Payments Coverage:
This helps cover medical expenses that may occur in an accident, regardless of who is at fault.
Rental Cars and Their Insurance Coverage:
If you have a car accident in a rental car, your personal auto insurance policy's liability coverage may extend to the rental vehicle. If you cannot figure out what to do, consider consulting an attorney who can assist you.
CLCA: California Low-Cost Auto Insurance Program
The California Low-Cost Auto Insurance Program (CLCA) helps low-income drivers obtain the liability insurance needed to meet legal requirements. To be eligible for the CLCA, you must:
- Be at least 16 years old with a valid driver's license
- Own a vehicle worth $25,000 or less
- Meet income requirements (e.g., less than $33,975 per year for one person)
FAQs about California Auto Insurance Requirements
What auto insurance is required in California?
At a minimum, liability insurance is required: $30,000 for injury to one person, $60,000 for multiple injuries, and $15,000 for property damage.
Does California require full coverage?
No, only liability coverage is required by law. "Full coverage" (a combination of liability, collision, and comprehensive) is optional but recommended.
What is an SR-22 certificate?
It is a document filed with the DMV that shows proof of minimum insurance for high-risk drivers.
Can I get insurance if I have a low income?
Yes, the CLCA program offers affordable auto insurance options for low-income residents.
What happens if I drive without insurance in California?
You may face fines, license suspension, and vehicle impoundment.
Is UM/UIM coverage mandatory?
No, but it is highly recommended for protection against uninsured or underinsured drivers.
Why Choose Fassonaki Law Firm, P.C.?
If you've been involved in an accident and need help navigating insurance or liability issues, turn to Fassonaki Law Firm, P.C. . Our experienced team is committed to helping injured Californians understand their rights and fight for the compensation they deserve.
Take the first step toward securing your rights; call 323-524-8994 now for a 100% free consultation with an experienced California car accident attorney at Fassonaki Law Firm, P.C.
