California Car Insurance

Car insurance premiums can be vastly different across insurance companies in California. For example, in 2005 the average Californian paid $845 on their auto insurance policy where in 2008 the average premium was $1,860. This represents an increase of 120%. Experts agree that the best way to save on auto insurance is to compare rates from multiple companies to find the best price.

California Car Insurance Requirements

Drivers from California are required to purchase the minimum liability automobile insurance. Liability insurance is made up of two types of insurance; bodily injury liability and property damage liability.

California law states that the minimum for bodily injury per person is $15,000, while the minimum for bodily injury per accident is $30,000. This means that if you are involved in an accident and hurt someone and they sue you, you are covered up to $15,000 for their injuries and up to a maximum of $30,000 for the whole accident. So if you cause an accident which causes two people in the other car to be hurt and need more than $30,000 than you will have to pay for the rest out of your own pocket.

Property damage liability pays for the damages to another driver’s vehicle if you are found at-fault for an accident. This is known as “third party property liability” as you are covering your financial risk in the event your driving causes physical damage to a third party’s property. California law requires that property damage liability be no less than $5,000. This means if you cause more than $5000 damage to someone else’s property than you have to pay the difference.

Learn more about the varying types of coverages by reading our article, Types of Car Insurance Coverages.

California Auto Insurance Legislation & Rights

California state legislature has recently passed Assembly Bill (AB) 2677 on December 3, 2007, which requires insurance companies to provide consumers with a cost estimate of its lowest priced personal auto policy at the limits the consumer requests and for which the consumer is eligible.

In addition, when you purchase a automobile policy you are required to receive policy documents known as the declaration page. It is important that you read over this document as it list your rights and duties as an insured.

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Quotes available in ALL of California, including Los Angeles, San Diego, San Jose, San Francisco, Long Beach, Fresno, Sacramento, Oakland, Santa Ana, Anaheim, Bakersfield and Riverside.