California Liability Insurance Requirements
In the state of California, only liability insurance is required by the state. It would be wise to get more coverage, depending on your driving habits, income, and so on. If you are seeking affordable car insurance, go for the minimum legal limit. California drivers are required by law to have liability insurance with these monetary limits of $15,000 on one person in an accident of either injury or death, $30,000 on two or more persons in an accident of either injury or death, and $5,000 for property damage per accident.
This insurance requirement is mandatory, and drivers must have written proof of their policy at all times in the vehicle. Most people carry this in their car's glove compartment, and then a smaller proof of insurance card in their wallet. The insurance card must show their insurance company's name, state and address, period of coverage, and the policy number.
That is the state minimum coverage of liability insurance. More coverage in increments can be added to the policy, for a higher rate of insurance--for a higher price. It is as if the insurance company is investing more in covering you and your vehicle in case you are in an accident. It is more so covering other cars and other people in case you are at fault in an auto accident.
California Collision Insurance
California is a driver-at-fault state. This means, that the person at fault in the auto accident is the one responsible to pay for the damages done. Hopefully this motorist is insured! If you are found to be at-fault in a car accident, you will feel a little bit better knowing that you have collision insurance. This auto coverage pays (up to your previous agreed upon limit) for the damages done that you have caused.
With forms of insurance, a deductible is required. Deductible rates are linked to the premium rates that are covered. And in order for the policy to take effect, the person at-fault must pay their deductible so that the insurance agency can proceed with cleaning up the mess, so to speak.
California Comprehensive Insurance
Many drivers opt-in for comprehensive auto insurance. Although it is not legally required by the state of California, many drivers choose it for it covers the auto accidents in life that may happen. It provides a wider coverage for the driver--more peace of mind.
Comprehensive auto insurance refers to coverage to your vehicle for damages done to it, other than a collision. It covers things such as a stolen vehicle, damage by weather, fires, earthquakes and more. It is typical that comprehensive and collision coverage together will only pay up to the actual cash value of the car. Loan and lease companies require comprehensive and collision coverage (as well as the required liability coverage) on the vehicle.