If you don't have a car insurance policy, California law doesn't require you to buy one. Instead, you have the option to use cash deposits or a DMV Certificate of Self-Insurance to drive. Only liability insurance is required by the state. Liability coverage must cover bodily injury and property damage.
California Car Insurance out-of pocket
Finding affordable California auto insurance can be difficult. The state's insurance laws can be very different from those in other states. California's minimum level of coverage will be lower than in other states. You could end up paying more for car insurance than you need, even if your credit score is excellent.
It is worth looking into comprehensive and liability coverage for your car. These policies are for collision damage. This coverage covers liability, which is the minimum required by law. It pays damages to other motorists and their property. In some cases, you may want to go beyond that limit.
Minimum coverage limits
California's minimum car coverage requirements aren't very generous. For example: The minimum amount of property coverage required by California is just $5,000. This is barely enough to cover costs for the purchase of a new car for the other party. You don't get any coverage for your own medical expenses. This can prove to be extremely expensive. You can add more coverage by purchasing Uninsured Motorist coverage. This will protect you and all your passengers if you are ever in an accident.
California limits liability coverage. The minimum required by law is fifteen-thousand-five, which means that you'll only have to pay for bodily injury and property damage if you're at fault in an accident. You will be responsible if the other party is unable to pay the amounts.
Cost
California car insurance is expensive. It depends on your driving history and age. The average cost of California car insurance for drivers under 25 is 2.5x that of older drivers. This is due statistically to the fact that teens are statistically more likely be in an accident. For this reason, Californians should aim for full coverage policies. These policies are usually less expensive than the minimum coverage policy which costs $50 per month.
While California does not require full coverage, those with expensive cars and car loans might find that full coverage is a necessity. These plans usually include liability, comprehensive, collision, uninsured/underinsured motorist, and medical payments. Full coverage plans, while more expensive than what the state requires, can provide financial protection. Mercury, GEICO or Progressive are the most affordable policies available in California. California car insurance costs an average of $150 per month. However, it is important to note that the rate can dramatically increase if you choose to add insurance add-ons to your policy.
Companies
California offers hundreds of choices when it comes car insurance. Before you decide on a plan, compare rates and discounts from different companies. There are many things to consider such as age, driving record and credit rating.
It's a good idea to start by comparing car insurance companies in your locality. You can save money by comparing what your neighbors pay to get their coverage. Progressive offers several discounts, including one that you can get online. Snapshot, which rewards safe driving, can lead to significant savings. However, be aware that car insurance in Los Angeles is among the most expensive in the country, due to the high number of car thefts.