People who live in the state of California and want to drive are required to carry a certain minimum amount of California auto insurance. Like most of the country, California operates under a tort system, under which drivers are held responsible for bodily injury or property damage that they cause while operating a motor vehicle.
California requires anyone that operates a motor vehicle to be financially responsible for any bodily injury or property damage that may result from an accident that was determined to be their fault. Most people opt to purchase California car insurance, which will protect them in the event of an accident.
Minimum California Auto Insurance Requirements (15/30/5)
With this minimum amount of liability coverage, your insurance company will pay up to $15,000 for injuries sustained by an individual that suffers bodily injury as a result of your actions while driving a vehicle and up to $30,000 for all persons injured in a single accident that you were found to have caused. It will also pay out up to $5,000 for any property damage that was a result of the accident.
Other Ways to Insure
California has several other ways to prove financial responsibility and be allowed to legally drive a car. In lieu of a California car insurance policy, one may make a $35,000 cash deposit with the DMV and self-insure against a possible at-fault accident. Fleet owners of 25 or more vehicles may choose to set up a fund on their own instead of buying traditional California auto insurance. Upon sufficient proof that the fleet owner has set aside sufficient funds, the DMV will issue a certificate of self-insurance. Finally, an individual can obtain a $35,000 surety bond from a licensed California insurance company.