Financial responsibility, commonly known as insurance, is required on all vehicles that are operated or parked on California roadways. Drivers must carry evidence of their insurance in their vehicle at all times and must be provided when:
• It is requested by law enforcement
• Renewing a vehicle registration
• The vehicle is in a car accident
What are the minimum liability requirements for insurance in California?
In California, every driver is required to have a minimum $15,000/$30,000 policy (commonly referred to as a 15/30/5 policy). This means there is a minimum of $15,000 for injury/death of one person and $30,000 for injury/death for two or more people in a car accident. Additionally, drivers must carry $5,000 for property damage. These are the base minimum requirements in California but it is advisable to carry higher amounts as even small car accidents can be extremely costly.
Why should I carry a higher amount for my car insurance?
Personal liability. While it may be attractive to go with one of the cheaper alternatives for car insurance if you are at fault in a significant car accident the injured person can come after your personal finances. There are some exceptions, but if they obtain a judgment against you it could result in devastating financial consequences like a damaged credit rating, losing your savings or house, and even bankruptcy. It is recommended carrying a $100,000/$300,000 policy.
What are different types of coverages?
The California Department of Motor Vehicles (DMV) oversees vehicle insurance and other types of insurance in the state of California. You can find more information about the following types of insurance on our website in the Personal Injury FAQ and Video FAQ sections and even more in depth on the DMV website at: https://www.dmv.ca.gov/portal/dmv/detail/vr/insurance.
The following types of coverage, among other, are available in California as car accident protection:
• Liability
• Collision
• Comprehensive
• Medical Payments (MedPay)
• Uninsured/Underinsured Motorist (UMC/UIM)
• Towing
• Rental Reimbursement
What if the other driver in a car accident doesn’t have insurance?
Unfortunately, depending on the type of coverage you have, you may not be able to recover anything. There are two ways you can recover if you’ve been in car accident with someone who doesn’t have insurance: either they have significant personal assets or you have under-insured or uninsured motorist coverage.
If you were in a car with someone who has UMC coverage, you have your own UMC coverage, or you are covered under a family member’s coverage you reside with, then there is a chance you’ll be able to make a personal injury claim. Most policies have language that includes family members who reside with the policyholder. You are able to ask the insurance company for a copy of the policy to see if this type of coverage is included.
Unfortunately, there are many drivers who do not carry insurance and put those who follow the law at significant risk. For this reason, we recommend looking into these additional types of coverage although they will likely cost a little more.
If you’ve been in a car accident with an uninsured driver, do not hesitate to contact us for a free case evaluation at (916) 619-5452. We can help you evaluate your options.
