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What Is The Purpose Of Minimum Auto Insurance Coverage?

minimum auto insurance california

Drivers in California know that there is a legal state minimum required for auto insurance. However, many California residents still need clarification about the state minimum coverage needed in California, what kind of coverage it provides, and what is the purpose of this minimum auto insurance coverage. Here are some of the facts drivers need to know to be more informed about insurance policies and why the minimum is in place.

What is Covered in State Minimum Auto Insurance?
Liability insurance coverage is required for California state minimum to cover damages to the other people and property involved in an accident. For example, this minimum insurance may cover damages to the other person’s car, and provide coverage for their medical expenses from injuries causes by the accident. The minimum auto insurance coverage provides very little coverage, and doesn’t cover any damage or medical bills for you, only the other person. In addition, add-ons like roadside assistance, towing, rental car reimbursement and other common insurance coverage options are not provided. This is why most drivers prefer to expand their coverage to help with damages to their own car or help pay their own medical bills in case of a car accident. Comprehensive and collision coverage are common coverage options that people tend to have in their auto insurance plans.

Why Does California Have a Minimum Auto Insurance Law?
This was setup to make sure that drivers have insurance coverage to help pay for damages they cause to other property and other people if they are in an accident.  There can be fines and penalties if you are caught driving without auto insurance. You may even have your license suspended in some cases. So, it is best to make sure you at least have the minimum auto insurance required by law in California.

If you have questions about the minimum insurance requirements, or additional car insurance coverage options, our experts can help. We have local auto insurance experts available to help you – contact us at 877-945-7233 to get your questions answered.