Every US state sets its own auto insurance minimum requirements. When you contact Lucas Insurance Services Inc. in Santa Clarita, CA, we’ll automatically include in your insurance estimate the required CA insurance even if you call us about collision or comprehensive insurance coverage.
That’s because the collision or comprehensive coverage that you want to purchase to protect your own vehicle, does not protect the other drivers and passengers on the road. Only the state-required liability and property damage insurance does that.
California Minimum Liability Insurance Requirements
When you purchase an automobile for private passenger use, the state of California sets specific requirements. These will differ if you purchase a commercial vehicle. For your private vehicle, you’ll need the following coverage, according to California Insurance Code §11580.1b:
liability coverage in the amount of $15,000 for injury to or death of one person,
- liability coverage in the amount of $30,000 for injury to or death of more than one person,
- property damage coverage in the amount of $5,000 for damage to another individual’s or organization’s property.
A liability insurance policy provides compensation to an individual or organization besides the policyholder whose property the policyholder damaged. Essentially, the state wants to ensure that you can meet the requirements of repayment if you damage something someone else owns or you cause them medical injury in an accident.
Suggested Higher Coverage Limits
The state minimums offer a starting point. The minimum required policy might not cover everything in an accident. For instance, the second coverage minimum of $30,000 for more than one person means that the total amount gets covered under the policy. It doesn’t mean per person.
If you only injured one individual, the policy would pay up to $15,000 in damages to that person. If you injured four individuals, the $30,000 maximum covered by the insurance policy means that each individual could receive up to $7,500.
California is one of the most expensive states for medical care, a visit to the hospital costs $3,726 per day; an overnight stay vaults the cost up to $9,300 to $13,600, depending on whether you carry medical insurance. That means the minimum liability coverage the state requires might cover one night of each individual’s hospital stay and some medicine. The rest would come out of your pocket.
Give Us A Call
Contact Lucas Insurance Services Inc., serving Santa Clarita,CA, for more information about auto insurance that covers your financial risk of driving. Let us help you protect your financial future.