Is Car Insurance Required In California?

A common question that arises in the mind of a potential car buyer or owner of a vehicle is whether or not they should purchase or rather invest in a car insurance policy. Although a valid question, it is also one that can sometimes lead to making the bad decision of not buying a car insurance just to save a few bucks.

Auto collisions happen more frequently than one would imagine especially in the State of California. The unfortunate occurrence could traumatize not just the victim in the accident but the driver at fault too. California in particular is infamous for fatal car accidents on an annual basis. As gathered from the 2019 LAPD crash data; There were nearly 54,000 traffic collisions, which is almost 150 crashes a day & out of all of those crashes, 236 fatalities were reported.

It must be noted by car owners that by provisions of the law of the State of California, it is mandatory for one to have car insurance for their vehicle, one with minimum liability if not a comprehensive one.

How to get cheap car insurance in California?

The question that concerns a car owner after they’ve decided to buy a car insurance policy is how can one get a cheap insurance coverage that protects their vehicle and financial interests simultaneously.

The process of analysing and accessing one’s options, risks, & budget must be as follows;

Need assessment: A car owner must be sure of what he needs but even if that is where the confusion lies, one must know what they don’t need. Let’s say a car owner has bought the latest model of a car that consists of an anti-theft alarm, he can eliminate that addition from his insurance coverage when shopping for a policy.

Comparison of two or more insurance plans: Research is your best friend when it comes to buying an insurance policy as there could be terms and conditions that an insurance agent might not apprise you of, either on purpose or unintentionally. You also get a better rate at a local insurance company as compared to a national or international insurance company. Sometimes, you may also get better prices from your insurance provider who you have purchased other policies from.

Elimination of unnecessary additions: To buy cheap car insurance in California one must also be vary of additions in their insurance coverage that they don’t need. By eliminating the extras, one brings down their premium cost and saves a few bucks.

The balance between income & expenses: There is a constant struggle to maintain a balance between one’s expenses and income and all of us strive to strike it. One must list down things they absolutely need and write off what they don’t need. Budgeting also helps to cut costs and minimise expenses.

Inquire about offers available:

If you purchase car insurance from your existing insurance provider, you will most likely get a discount or better rate of premium as compared to you buying insurance from a new company. You could also save the money you pay as commission if you buy the policy online.

By getting a long term policy and not settling for the first policy you come across, you are also doing right buy your vehicle and protecting your financial assets in case you meet with an accident or cause one. The minimum bodily liability limits & property damage limits for any vehicle are as follows;

Minimum Bodily Liability Limits

$15,000 for the death or injury of any one person. If one person is injured in the accident, your coverage pays up to $15,000. A total of $30,000 for the death or injury of more than one person in any one accident. If 2 or more people are injured, the coverage pays up to $30,000. The coverage will not pay more. The injured people share the money, and this coverage applies to injuries that you cause to someone else.

Minimum Property Damage Liability Limits

  •  $5,000 for damage to the property of other people.
  • This pays for damage you cause to someone else’s car, or to objects and structures that your car hits.

Having minimum liability coverage doesn’t ensure the covering of costs incurred due to the accident which could potentially be more than the limit of coverage you have purchased.

The conclusion is that, yes, having car insurance is absolutely essential but one can definitely get cheap car insurance in California or elsewhere just by doing some research and saving money wherever possible.

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