California Mandatory Auto Insurance

If you are considering an auto insurance policy and aren’t quite sure how much coverage you need, take some time to learn the California mandatory auto insurance requirements to make sure you have enough protection in place.  If you use your vehicle as an underinsured driver, you may incur additional out-of pocket expenses if you are subsequently involved in an accident.

California is a no-fault auto insurance state and as such, road users have no bodily injury liabilities to third party drivers. However, this doesn’t mean you can forego a policy purchase because California mandatory auto insurance has to be in place in case you sustain injuries yourself or encounter damage to your own property.

Californian road users are obliged to purchase 15/30/5 insurance and the coverage levels are determined as follows:

  • $15,000 worth of personal bodily injury liability
  • $30,000 worth of bodily injury liability per accident
  • $5,000 worth of property damage liability

It is an offence to use a vehicle on state roads and highways without having California mandatory auto insurance in place. If you are stopped by a law enforcement officer and are unable to provide a certificate of auto insurance, you run the risk of losing your right to drive, your vehicle registration and, in some cases, the vehicle itself.

It is also necessary to carry California mandatory auto insurance even when you’re vehicle is kept on the side of the road. If your vehicle is parked but doesn’t have a valid policy, the state reserve the right to recover the vehicle and impound it until mandatory coverage is purchased.