In order to drive legally in California, you are required to maintain a specific amount of insurance. The minimum liability limits include:
- $15,000 for body injuries to one individual in a collision.
- $30,000 for body injuries to more than one individual in a collision.
- $5,000 for property damages caused by the collision.
Drivers are expected to contact their local Department of Motor Vehicles (DMV) to notify them that they are withholding a substantial amount of insurance coverage. If you happen to cancel your insurance, the insurance company will inform the DMV and your vehicle registration will be suspended until you buy a new insurance policy along with showing evidence of that insurance.
It is highly recommended that drivers in California buy more than what the required minimum insurance is. This may not cover all of the expenses included if you are at fault for the accident. However, if you have access to additional coverage, you don’t have to worry about this.
For example, if you get into an accident with a vehicle that’s worth $20,000 and your liability insurance is $10,000, then you are required to pay the rest of the amount as out-of-pocket. By acquiring higher limits and extra insurance, you can get the protection you may need for situations like this.