California Automobile Insurance Types of Coverage

Types of Coverage
Covers

Pays For

Required
Liability Bodily Injury Property Damage The insured’s legal liability for bodily injury and property damage arising from ownership or use of the insured vehicle Your responsibility to pay for medical, death and hospital expenses including cost of repairs to other party’s vehicle or property Yes, by California Department of Motor Vehicle Code
Uninsured/Underinsured Motorist Bodily Injury The other party’s legal liability to you for bodily injury arising from the negligent operation of their uninsured vehicle Provides coverage for a policyholder involved in a collision with a driver who does not have liability insurance or who does not have sufficient liability limits to pay for damages No, but every automobile insurance company must offer uninsured motorist coverage, and they are required to have a signed waiver on file if the coverage is rejected
Uninsured Motorist Property Damage The other party’s legal liability for property damage arising from the negligent operation of their uninsured vehicle Cost of repairs to your vehicle not covered by collision insurance, subject to a limit of $3,500. UMPD coverage pays for the property damage to your car when there is a collision with an identified uninsured driver.  No, but every automobile insurance company must offer uninsured motorist coverage, and they are required to have a signed waiver on file if the coverage is rejected
Medical Payments (PIP) All the occupants of your vehicle Medical expense incurred without question of legal liability No
Comprehensive

Physical Damage other than Collision

The insured vehicle subject to the deductible Cost of repairs or the fair market value of the vehicle Yes, by lenders and leasing companies
Collision The insured vehicle subject to the deductible Cost of repairs or the fair market value of the vehicle Yes, by lenders and leasing companies
Rental Reimbursement

Daily limit and number of days subject to policy terms

Named Insured Cost of a rental car while your vehicle is being repaired under coverage afforded by the policy No
Towing Named Insured Reasonable and necessary towing and labor cost subject to policy terms No

What Could Happen If I Ignore This Law?
The most common way drivers choose to comply with the financial responsibility requirement is by purchasing an automobile liability insurance policy.  If you have an accident not covered by insurance, then your license may be suspended.  It is your responsibility to provide liability insurance for any vehicle you own regardless of who is operating the vehicle. It is illegal for those vehicles to be operated without meeting the requirements of this law.

Automobile Insurance Resources - Where to Call When You Need Assistance

California Low Cost Automobile Insurance Program
For more information about this state-sponsored plan for low-income drivers, call (800) 622-0954

California Automobile Assigned Risk Plan (CAARP)
For more information about the State’s insurance plan for high-risk drivers, call (800) 622-0954

California Department of Insurance
300 South Spring Street, South Tower
Los Angeles, CA 90013
800-927- HELP (4357)

California Department of Motor Vehicles
2415 1st Avenue Mail Station F101
Sacramento, CA 95818
800-777-0133

California Automobile Assigned Risk Plan
595 Market St., #1250
San Francisco, CA 94105
(800) 622-0954 Toll-free within California only.

Back to top