Cheapest and Best California Car Insurance Companies (2022)
Auto insurance coverage in California
Cars on California Highways If you’ve just moved to California and need auto insurance coverage, or you’ve been here a while and are looking for cheap car insurance that doesn’t cut corners, you’re in for a treat. That you got a quote with GEICO. . So, how much is car insurance for your ride in California? You can get a free car insurance quote online with GEICO to find out. California also has some unique car insurance laws compared to other states that insure vehicles here, so read on to stay up to speed.
Minimum California Car Insurance Coverage
Drivers in California are required to have at least the following auto insurance coverage:
Bodily Injury Liability Coverage: $15,000 per person / $30,000 per accident minimum
Property Damage Liability Coverage: $5,000 minimum
Uninsured Motorist Bodily Injury Coverage¹: $15,000 per person / $30,000 per accident minimum
Uninsured motorist property damage coverage¹: $3,500 minimum
Although this is the minimum coverage California requires of you, everyone’s auto insurance needs are unique. Visit our coverage calculator to get a personalized recommendation.
California registration information
Your vehicle may be subject to California registration from the date of entry. Fees must be paid within 20 days of the vehicle’s date of entry into California to avoid penalties.
You will need:
Complete Application for Title or Registration (REG 343)
Submit registration certificate outside your state
Submit your title outside your state (if you have one)
Provide proof of California Smog Certification
Provide odometer mileage certificate (if your vehicle is less than 10 years old)
Bring your vehicle to a DMV office for vehicle identification number verification. (For your convenience, we recommend that you call your local DMV to schedule an appointment.)
Pay the fee
Commercial vehicles, including pickup trucks, may also require a weight certificate
The current law applies to vehicles purchased outside of California and brought into California within 12 months of purchase. The new law, effective October 1, 2004 through July 1, 2006, requires payment of use tax on a vehicle purchased outside of California and brought into California within 365 days of the date of purchase.
INSURANCE REQUIREMENTS
Insurance (also referred to as financial responsibility) is required on all vehicles operated or parked on California roads.
You must keep proof of auto insurance in your vehicle at all times and must provide it when:
- Requested by law enforcement.
- You are renewing the vehicle registration.
- The vehicle is involved in a traffic collision.
Types of Insurance
Here are the types of insurance acceptable:
Motor vehicle liability auto insurance policy.
$35,000 cash deposit with DMV.
Certificate of Self Insurance issued by the DMV.
Surety bond for $35,000 from a company licensed to do business in California.
For information regarding cash deposits or self-insurance, contact the DMV Financial Responsibility Unit at (916) 657-6520.
To find a surety bond issuing company, contact the Department of auto Insurance at insurance.ca.gov or by calling 1-800-927-4357.
Minimum liability insurance requirements for modified passenger vehicles
Here are the minimum liability insurance requirements (per California Insurance Code §11580.1b):
$15,000 for injury/death to one person.
$30,000 for injury/death to more than one person.
$5,000 for property damage.
Liability insurance compensates someone other than the policyholder for personal injury or property damage.
Comprehensive or collision insurance does not meet the vehicle’s financial liability requirements.
California minimum car insurance: Everything you need to know
California minimum car insurance is a type of liability coverage that pays for any damages you cause to another driver. This coverage is usually not sufficient and you may want to consider purchasing additional coverage.
California minimum car insurance is a type of liability coverage that pays for any damages you cause to another driver. This coverage is usually not sufficient and you may want to consider purchasing additional coverage.
What Is California Minimum Car Insurance?
California minimum car insurance is the minimum insurance requirement set by the state. Car insurance is required in all states, including California, to ensure that drivers involved in car accidents have the funds necessary to recover.
To drive in California, you must demonstrate financial responsibility. This proves that you have the ability to cover any damages or medical injuries that you cause to the other driver. Most people prove financial responsibility by purchasing an insurance policy. Without auto insurance, you may be personally responsible for any costs you incur, but according to the California DMV, California can suspend your driver’s license or impound your vehicle.
California requires the following minimum insurance coverage:
Bodily Injury Liability $15000 per person
$30000 bodily injury liability per accident
$5000 property damage liability
Bodily injury liability coverage refers to a type of insurance coverage that pays for the medical bills and property damage of other drivers and passengers that you injure in a car accident. Some drivers may choose to prove their financial responsibility in other ways. Other available options include:
- Make a cash deposit of $35000 in the Department of Motor Vehicles.
- Get a California bail bond of $35000.
- Provide proof of self-insurance to the DMV.
California drivers are required to have proof of insurance at all times while driving. Failure to provide proof of insurance when pulled over or following an accident can result in fines.
Consider other types of insurance coverage
Liability may be a requirement in California, but it’s not the only type of insurance to consider. Other types of coverage that you may want to consider adding to your policy include:
- Uninsured/Underinsured Coverage: If you are in an accident with a driver who is at fault but has no or enough insurance, this will pay for your damages and bills.
- Medical Payments Coverage: Medical payments coverage can cover any medical bills that are not covered by a separate insurance policy.
- Towing/Roadside Assistance: Towing/roadside assistance coverage can help cover the costs associated with towing your vehicle after an accident.
- Physical Damage Coverage: Physical damage coverage covers damage to your own vehicle, regardless of who is at fault. This includes collisions and extensive. Collision covers damage related to a collision, while comprehensive cover covers damage unrelated to an accident, such as from theft or vandalism.
- Some of these add-on policies may come with a deductible, which is the amount you have to pay out-of-pocket before you can access your benefits. If you choose a higher deductible, you’ll have to pay more before your insurance company issues a payment. You may choose a lower deductible, but your monthly payments will be higher each month.
It is up to you if you want to add additional coverage beyond the state minimum. If you are in an accident and do not have adequate insurance, you may be personally liable for any damages. According to the California Department of Insurance, you may also be sued individually. Additionally, if you have a lease or loan on your vehicle, your lender may require you to have certain types of coverage. Failure to add this coverage may void your contract and they may purchase it on your behalf, at a higher cost.
How to get the best insurance rates in California
Whether you decide to stick to California’s minimum insurance requirements or you want a full policy, it can be helpful to shop around for the best rates. In addition to comparing quotes between providers, you can also get the best insurance rates with the following tips:
- Qualify for a good driver discount: If you have a good driving record, you may qualify for a good driver discount.
- Adjust your deductible: You can adjust your deductible to get a better monthly rate. Just keep in mind that you may have to pay more if you are in an accident.
- Consider your insurance needs: Not everyone needs full coverage. It’s always a good idea to consider your insurance needs because adjusting your policy can affect your price.
- Maintain a good driving record: Certain factors, such as a speeding ticket or DUI, can significantly increase your insurance rates. Avoid speeding or DUI to avoid price gouging.
- Depending on your provider, other discounts are sometimes available. If you or your family own more than one vehicle, you may be eligible for a multi-vehicle discount. Always ask your provider what discount programs are available.
The most important thing to keep in mind is that auto insurance companies charge different rates. You may also get different rates for the same level of coverage. Additionally, some brokers charge fees, while others do not. This is why it is important to compare quotes when shopping for auto insurance. Once you choose a policy, it doesn’t mean you have to stay with them forever. Whenever your insurance needs a change, compare quotes between providers again. Insurance rates often vary based on the number of policyholders in an area as well as the number of claims in the previous year.
What is the California Low-Cost Program?
California has a low-cost program called the Low-Cost Automobile auto Insurance Program. It is available to drivers who meet the following requirements:
Annual income of 250 percent or less of the federal poverty level.
A vehicle valued at $25,000 or less.
Valid California Driver’s License.
At least 16 years of age.
Liability limits may be lower than coverage requirements for California. However, purchasing auto insurance through this program meets state laws as long as you qualify for the program.
When you drive a vehicle in California, you agree to follow the state’s minimum car insurance laws. Some drivers may also choose to purchase additional coverage for added protection. If you need additional information, resources, or guidance on car insurance, check this out.