California Vehicle Insurance and Liability Requirements Explained

by Kevin Smith Author

It is surprising, but not everyone who drives in California knows or understands the various car insurance liability requirements mandated by law. This can lead to serious consequences, particularly if someone is involved in an accident. If you are in the market for San Diego car insurance, here is what you need to know.

California is an “At Fault” State

State law falls heavily on the side of liability as it pertains to who caused an accident and any mitigating circumstances that led to the accident. The easiest way to summarize the law in this regard is that California believes that if you cause an accident, you are responsible for virtually all the financial damage associated with your actions.

In fact, if you are an accident victim, there is very little you cannot pursue financially. This includes both insurance claims as well as civil liability. Compensation the person who is adjudged to have caused the accident will be responsible for include medical, lost income, property damage, pain and suffering, etc.) Accident victims can pursue a third-party claim via the at-fault driver’s car insurance and they can file a personal injury suit against the same.

Minimum Coverage Requirements

Liability insurance is mandated in California and the amount a driver must carry is determined by a legally mandated formula. The purpose of the formula is to ensure that drivers, passengers and pedestrians who might be injured because of actions the insured took are fully covered. The minimum coverage requires is as follows:

$15,000 for injury or death to one person
$30,000 for injury or death to more than one person
$5,000 to cover property damage.

It is important to know that these are minimums. In reality, a smart driver will carry more liability than the minimum, even if they are a very safe driver with a great driving record. For all drivers, once the policy limits are met, the person who caused the accident is personally, financially liable to those involved in the accident. Literally, one mistake can end up in financial ruin if the person who caused the accident is not adequately covered.

Alternative Scenarios

Liability insurance under California law also will cover family members or another driver you allow to use your car. In addition, it will cover rental car accidents and subsequent damage. It does not cover the policyholder (that is additional, different insurance.)

If you drive in San Diego, car insurance is more than just a good idea; in the area of liability, it is mandated and highly recommended you exceed any minimums. That way, if the worst happens, you are at least financially secure.