Most California drivers know that our state requires all vehicles carry at least the legally required minimum liability coverage. In case you were wondering, those limits, most commonly referred to as 15/30/5, are $15,000 for individual bodily injury per accident, $30,000 for cumulative bodily injury per accident, and $5,000 in property damage. The state of California also has a Low Cost Auto Insurance program which lowers the limits to 10/20/3.
Liability insurance is the most commonly required type of car insurance throughout the various states. Even in the rare state that does not require liability car insurance, you may find that having liability insurance is worth the financial security. Bodily injury coverage pays for injuries suffered by others in an accident you caused. Property damage coverage pays for damage you cause to another person’s property (typically their vehicle) in an accident. Your own injuries or property damage are not covered through liability insurance.
Insurance companies in California are required by law to electronically report private-use vehicle insurance information to the Department of Motor Vehicles. That means that the DMV is notified if your vehicle does not have the required coverage. Your vehicle registration could be suspended and registration renewals will be held up until the mandated insurance coverage is restored.
Drivers can also be cited for not having the mandated auto insurance coverage. Penalties can range from fines to vehicle impoundment.
It is best to speak with your insurance professional to find the right insurance policy to fit your needs and budget.