California car insurance

While every state has its own unique insurance requirements, you should also consider other state-specific factors that can influence the coverage you need. Here are some considerations for auto insurance in California:

• How much you drive – California is home to more cars than any other state in the country.1 With plenty of land to traverse and cities that often favor cars over public transportation, Californians get no shortage of life behind the wheel. Consider the amount you’ll need to drive when you purchase your auto insurance. If you don’t plan on logging too many miles, insurance options like pay-per-mile may help you save.
• California is an at-fault state – This means if you’re ever determined to be at fault in an accident, you could be responsible for costs like medical bills and repairs. In light of this, and to be extra safe, you might consider adding more than the minimum liability coverage to your insurance.
• How much long-distance driving you do – With scenic highways like the famous Pacific Coast Highway running through California, there are many opportunities for cross-country travel. If you plan on taking advantage of them, you might consider adding roadside assistance from your insurance company.
• Where your kids will attend college – California boasts a multitude of colleges and universities, public and private. If your kids decide to stay in state for college, you’ll want to consider their auto insurance needs.

State of California minimum car insurance coverage

California state law requires all drivers to carry proof of insurance in their vehicles at all times. But what coverage does that insurance need to include? According to the California DMV, these are the four kinds of insurance accepted as satisfying the minimum requirement:

• Liability insurance
• A cash deposit of $75,000 with the DMV
• A DMV-issued self-insurance certificate
• A surety bond worth $75,000 from a business with authorization to operate in California

Regarding the liability insurance requirement, California now requires the following minimum limits:

• $30,000 for injury/death to one person.
• $60,000 for injury/death to more than one person.
• $15,000 for damage to property.³

Additional factors that affect car insurance rates in California

Coverage isn’t the only thing affected by the state you live in. Here are some factors that affect car insurance rates in California:

• Driving record – With the volume of drivers on California’s roads, accidents are bound to happen. If you or someone else on your policy has a history of accidents in the past, your rate may rise accordingly. Choosing insurance with accident forgiveness may help with this.
• The car you drive – Different cars have different safety ratings, leading to impacts on their insurance rates. Sports cars and older vehicles without modern safety features may carry higher rates, and vice versa.
• The amount you drive – If you’re getting out to see California on the open road, you could end up logging many miles. But, if you don’t plan on driving as much, driving fewer miles can lead to lower rates or make pay-per-mile programs a good option.

The Golden State may have many effects on the auto insurance you need, but by carefully reviewing your options, you’ll find just as many ways to save. If you plan to drive more, look into the available discounts that may reward you for responsible driving habits. Or, if you plan to drive less, think about enrolling in a pay-per-mile program. By checking out your state’s resources on car insurance requirements, considering the factors specific to your community and weighing your options accordingly, you can get all the coverage you need while keeping yourself safe on the road.