Car Insurance in California: What Coverage to Choose for Complete Protection
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You're looking for car insurance in California — what coverage to choose? Should you go with a minimum liability auto insurance policy or purchase collision and comprehensive coverage? What is the best car insurance company in California? Can you get a discount on your next policy?
These are just a few questions you might ask as you compare car insurance quotes. You'll find the answers in this guide.
Evaluate Your Coverage Requirements
Understanding auto insurance and its requirements can help you determine the coverage you need when you start the shopping process.
Like other states, California requires drivers who own or operate a vehicle to carry minimum liability auto insurance. Through December 31, 2024, all drivers must own a policy that meets these minimum coverage requirements:
- $15,000 for injury or death of one person in a car accident
- $30,000 for the injury or death of more than one individual in a single collision
- $5,000 for property damage
Effective January 1, 2025, drivers must increase their coverage to the new state requirements:
- $30,000 for injury or death of one person in a car accident
- $60,000 for the injury or death of more than one individual in a single collision
- $15,000 for property damage
While those are California's base insurance requirements, you may need additional coverage if you finance a vehicle. Lenders may require you to carry higher liability insurance, and they may also request you have comprehensive and collision coverage. You can review your loan contract to see if they're required.
Prepare Your Driver and Vehicle Details
Three primary types of insurance may apply to California drivers. Here's how each one works.
Liability Insurance
Liability insurance compensates others for bodily injury or property damage they sustain in a collision you're predominantly at fault for. It can cover these types of costs:
- Medical expenses for other drivers or passengers in a wreck you cause
- Pain and suffering as a result of the wreck
- Lost wages for being unable to work as a result of the accident
- Your legal representation, if another party decides to sue you for the accident
Your liability insurance kicks in when you cause an accident. For instance, if you're distracted by your cell phone and accidentally plow into the back of someone else's car, your liability insurance would cover the other driver's medical costs and car repair bill.
Collision Insurance
Collision insurance pays the repair costs to your vehicle if you're at fault in an accident. You can use it if you run into another car or a stationary object, such as a road sign. To initiate an insurance claim, you notify your provider, explain the circumstances, and pay a collision deductible. The insurer covers the remaining costs up to the limitations of your policy.
Collision insurance is usually required when you lease or finance a vehicle. If you own the car outright, having it may not be necessary. However, it is a good option for those who want peace of mind their vehicle is protected in a wreck.
Comprehensive Insurance
Comprehensive insurance pays for your vehicle's repair costs if it's damaged by circumstances outside your control. Some examples of damage that comprehensive insurance may pay for include:
- Vandalism
- Weather-related events, like a flood or hail
- Fire
- Theft
- Running into an animal, such as a deer
- Falling objects
As with collision insurance, you must pay a deductible before your policy kicks in. While comprehensive coverage is optional for drivers who own a vehicle outright, a lessor or lender may require it under the terms of your agreement.
Review the insurance requirements of your state:
Explore Available Discounts
Insurance companies usually offer a variety of discounts to lower your insurance premiums. Some examples of discounts you may qualify for include:
- Payment-related savings: This includes discounts for paying your policy in full, signing up for auto-pay, or enrolling in paperless programs.
- Vehicle safety features: If you car includes features such as anti-lock brakes, daytime running lights, or an anti-theft device, the provider may lower your insurance costs.
- Driving history: If you don't have any recent driving tickets or insurance claims, you may qualify for a lower rate.
- Driver education: Attending a defensive driving course may lower rates for teenage or senior drivers.
- Usage discount: Drivers may sign up for a usage-based policy, which calculates insurance rates based on the miles driven.
When shopping for California car insurance, ask providers about their discounts and let the insurance company know if you believe you qualify for savings.
Choose the Optimal Policy for Your Needs
Auto insurance isn't one-size-fits-all. While all California drivers must carry minimum liability coverage, you may request additional coverage based on your risk tolerance and whether you lease or finance a vehicle. Some people find that additional coverages make them feel more comfortable knowing their vehicle and other assets are protected in the event of an accident.
Shop Around for the Best Quotes
If you're in the market for car insurance, it's important to get car insurance quotes in California from multiple providers. Minor factors, like your zip code or the model and year of your vehicle, can drastically impact your premiums. You won't know whether you're getting the best cheap rates unless you shop around.
EverQuote helps customers find affordable insurance in every state. When you complete our online questionnaire, we'll provide a side-by-side comparison of insurance rates from California car insurance companies. Best of all, it's free! Start today with EverQuote.