Personal Auto:

California law requires that all drivers of vehicles within the state maintain evidence of financial responsibility at all times.

Automobile insurance is simply a contract that helps pay for certain types of financial losses or obligations resulting from the use or ownership of an automobile.  To obtain the contract (insurance policy), you pay a specified amount of money called a premium.  In return for the premium paid, the insurance company agrees to pay certain expenses and legal liabilities depending on the terms of the insurance  policy.  Having the right insurance coverage may prevent you from suffering a large financial loss in the event of an automobile accident.

The statutory minimum limits of liability insurance in the state of California are:

  1. Bodily injury liability
    • $15,000 for death or injury of any person, any one accident
    • $30,000 for all persons in any one accident
  2. Property damage liability
    • $5,000 for any one accident

All California drivers and owners must have at least the statutory limits of minimum liability insurance to pay for injury or property damage they may cause.  Penalties are very severe for non-compliance with this section of the vehicle code.