The helpful Guide to Car Insurance For California: What You Need to Know
You may have just moved to California, and you need auto insurance. Or you might be a California resident looking for coverage for some time. Cheap car insurance You’ll be happy you received a quote from GEICO.
How much does Car Insurance For California? California has unique laws for car insurance that are different from other states.
Car Insurance For California
How much is Car Insurance For California?
Californians pay less than other states for their auto insurance. However, California is one of the most expensive states in which to live.
According to NerdWallet, the average annual cost of California full coverage insurance is $1,659, or $138 per month for a driver 35 years old with a good driving record.
Minimum coverage policies in California cost an average of $506 per year or $42 per month. The rates vary between states and from one provider to another’s.
You can buy cheap coverage through Progressive for an average annual cost of $481. Esurance offers affordable car insurance with full coverage at an annual average premium of $1055.
You may pay more for insurance if you do not compare quotes. The liability-only policy of Farmers costs an average of $850 per year, the highest rate we have seen in California. Allied offers the lowest rates in California for full coverage at $1,762 annually.
Minimum Coverage of Car Insurance For California
California law requires that all drivers carry liability insurance at or above certain amounts. These liability thresholds ensure that other drivers or passengers will be compensated for their medical bills. California Department of Motor Vehicles requires that drivers carry the minimum amount of insurance:
- $15,000
- $30,000.00 for injuries or deaths to more than one person
- Damage to Property: $5,000
California’s Low-Cost Auto Insurance Program is available to drivers with low household incomes. The program is restricted in its eligibility, but it helps individuals purchase affordable minimum coverage to meet the state mandate.
California drivers not only purchase the minimum coverage, but many also buy additional coverage. Suppose they are found at fault in an accident. In that case, the insurance company will only pay the maximum on their policy.
After they have exhausted their coverage, they will pay any remaining damages. Additional coverage policies protect you from financial difficulties.
While liability insurance is required by California law, many drivers opt for additional coverage.
Discounts Of Car Insurance For California
Insurance is one expense you can reduce. According to Forbes Advisor, the average annual cost of car insurance for a 30-year-old driver, including liability coverage, uninsured motorist coverage, collision and comprehensive coverage, and other insurance, is $1,998.
Discounts for multi-policy policies
Multi-policy discounts are often available when you purchase Car Insurance For California and other policies with the same company.
Combining car insurance with home insurance can save you up to 25%. If you are not a homeowner, there is no need to worry, such as renters insurance, motorcycles insurance, RV insurance, or life insurance.
Discounts on vehicle safety
You may be eligible for a discount if your vehicle has safety features like airbags and anti-lock braking systems.
The discounts on daytime running lights tend to be very small, while airbag discounts can amount to up to 40% for front-seat airbags.
Car Insurance For California requirements
California requires that all drivers have insurance coverage or financial responsibility in some form before they hit the road.
California’s minimum requirements for car insurance include coverage of up to $15,000 for bodily injury caused by another driver, $30,000 per accident and $5,000 for property damage.
You can choose an alternative insurance coverage, even though car insurance is a convenient way to satisfy the financial responsibility requirement. If caught driving in California without insurance, you may have to pay a fine and lose your license.
California Liability Insurance
California requires that all drivers carry liability insurance, which covers injuries and damages caused by you in an accident.
- Bodily Injury Liability Insurance: This coverage pays the other party’s medical bills if you are found to be at fault for an accident. You’ll need bodily injury insurance of at least $30,000 per accident and $15,000 per person in California.
- Property Damage Liability Insurance: If you are at fault, this coverage will pay to repair the vehicle of the other party up to $5,000.
These minimum limits often do not cover all medical costs or damages to another vehicle. You will likely have to cover the rest of the costs. Therefore, choosing higher limits to protect your assets is a wise decision.
California PIP and Med Pay insurance
The PIP and the Med Pay policies differ from general liability policies because they cover you as the policyholder. In general, liability insurance will cover damage you cause to other people.
Your insurance policy will cover the medical costs and damage to the Property of someone you have injured up to a certain point. It is not true for a PIP policy or a Medi Pay policy.
If you have PIP or Med Pay, the policy will cover damages resulting from your injuries, regardless of fault.
California Personal Injury Protection Alternative: Med Pay
PIP insurance cannot be purchased in California. California drivers who want a PIP insurance policy have an alternative.
California best car insurance companies offer Med Pay policies as optional coverage. Med Pay policies tend to be less comprehensive than PIP policies.
In California, Med Pay is a product that can be purchased as an optional insurance policy. It similarly covers medical expenses if you had opted for PI. Med Pay policies are similar to PIP policies in that they cover medical costs regardless of who is at fault.
Med Pay policies, however, are usually limited only to medical and burial expenses. PIP policies cover most economic costs associated with an injury. This includes lost wages. Med Pay policies do not cover lost wages.
Med Pay policies usually cover passengers in the vehicle, spouses and family members. Ask your insurer about Med Pay policies if you want PIP coverage.
Liability Insurance
This guide will walk you through all the important information about liability insurance. We must begin with the most fundamental question: What is liability insurance exactly?
Liability insurance protects others if you cause an accident.
In most states, including California, liability insurance is a minimum requirement for all drivers. If you’re in an accident with someone else, their liability insurance can help cover damages.
You now know more about how your insurance works. Do you know exactly what your liability policy is supposed to cover?
Liability insurance is actually two different types of coverage. Property damage liability coverage is the first type, followed by bodily injury coverage.
Property damage liability covers any damage you cause to others or your vehicle. This covers damage to other cars and structures such as fences, mailboxes and fences.
In most states, including California, liability insurance is required. Having more insurance than just the minimum requirement is still important because liability insurance won’t cover certain things.
Your own liability insurance, for example, does not cover your vehicle. If someone else was at fault, their liability insurance may help cover damages. If you have collision insurance, it pays for the repairs regardless of who is at fault.
Cheapest Car Insurance For California
According to our research, Wawanesa General is the lowest-cost auto insurance provider in California. The average rate per year is $1,214. USAA offers the second-cheapest premium (1,362), but only for members of the military and veterans. Nationwide has the highest average rate in the state, with an annual average of $2,683.
In California, male and female 17-year-old drivers pay an average of $4,881 per year for car insurance. Wawanesa General offers male and female teen drivers the lowest annual rate of $2,490. Nationwide charges teen drivers an average of $9,493 a year for both men and women.
In California, for married couples aged 35, the average annual car insurance premium is $1652. Wawanesa General is the least expensive option, while Nationwide is the most expensive.
Conclusion:
Californians must have car insurance. It’s essential to know what kind of coverage they need. This guide is intended to help you better understand the options for Car Insurance For California and give you more confidence when you make your choice. Shop around to find the best deal, whether you choose basic liability coverage or full coverage.
