- All private vehicles on the road are required to have car insurance in California.yellow car, a honda japanese sport car model image by alma_sacra from Fotolia.com
California law requires that all drivers purchase insurance for each private passenger car that is driven on the road. Before registering any vehicle with the California Department of Motor Vehicles (DMV), proof of insurance is required. Drivers must purchase an insurance policy that covers a minimum $15,000 of bodily injury per person, up to $30,000 of bodily injury per accident and $5,000 for property damages. California drivers without insurance can expect to pay a fine and possibly have their license suspended. - Liability car insurance covers the property damage and bodily injury of other parties during an accident. This type of insurance is the most inexpensive form of coverage and does not cover damages or injuries of the person at fault. Liability insurance is the basic form of insurance that is required by the state of California to legally drive a vehicle on the road. Liability can be purchased as a "Combined Single Limit" policy, which combines both bodily injury and property damage amounts together, or a "Split Limit" policy, which covers damage and injury separately.
- Collision insurance helps to protect individuals in any type of collision that may occur. Collisions such as striking an animal, light pole, person or other vehicle can be covered by this type of car insurance. This insurance is not required by California law, but it may be required by banks or financing companies if the vehicle has been purchased from a dealer or leased. Collision insurance pays for damages made to the vehicle during an accident due to the fault of the driver. Vehicles can be repaired up to the fair market value amount after the deductible has been paid.
- Comprehensive car insurance helps pay for vehicle damages caused by a natural disaster, fire or vandalism. This insurance, which is also optional, helps to pay for damages that occur through no fault of the owner. Comprehensive insurance helps to cover the financial costs of repairing the vehicle, up to its fair market value. Although this insurance is optional, vehicle owners who have financed a car from a dealership or are leasing may be required to obtain this type of insurance.
- Full coverage car insurance is a combination of liability, collision and comprehensive insurance in one policy. Most owners of new or leased vehicles are required to purchase full coverage insurance to fully cover the financial expenses of the vehicle in case of an accident. Although more expensive than liability, this form of insurance covers the vehicle owner, third parties and property in any type of accident or no-fault situation.
Liability Car Insurance
Collision Car Insurance
Comprehensive Car Insurance
Full Coverage Insurance
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