California Auto Insurance

Guide to California Auto Insurance

Strategies to help you cut costs on car insurance in California
By Matt Alderton

Car insurance in California, like gas or rent, is expensive yet necessary. It doesn't just protect your car from dents; it protects you and other drivers from both bodily harm and financial ruin. For that reason, California car insurance coverage isn't just something that drivers in the "Golden State" should have; it's something they must have.

California auto insurance coverage doesn’t have to break the bank. You may be able to save by shopping around, declining unnecessary coverage and trading high deductibles for lower premiums. Indeed, you can cut costs, but you can't cut corners. If you drive in California, you need auto insurance in California. Here's what kind and how much, according to California state law:

1. When buying auto insurance in California, drivers must purchase bodily injury liability (BIL) and property damage liability (PDL) coverage; collision, comprehensive, personal injury protection (PIP), uninsured motorist bodily injury (UM) and uninsured property damage coverage are recommended, but not required.
2. Auto insurance in California must include BIL coverage of at least $15,000 per person and $30,000 per accident for costs associated with the injury or death of others in a wreck.
3. Auto insurance in California must include PDL coverage of at least $5,000 for damage to another person's property in an accident.

Action Steps

The best contacts and resources to help you get it done

Browse California auto insurance rates online If you need California auto insurance, online quotes are a good starting point. Available from all major auto insurance companies in California, they offer a fast and convenient way to research and compare premiums.

I recommend:  Get comprehensive online quotes from California car insurance providers at websites like InsWeb, Insurance.com, InsuranceUSA and InsuranceFinder, or from companies like Progressive and Esurance, which quote both their own and competitors' rates.

Solicit California car insurance quotes from national providers Most major car insurance carriers offer auto insurance in California and all provide competitive California auto insurance rates.

I recommend:  Among the largest and most popular car insurance companies in California are AIG, Allstate, Chubb, Farmers, GEICO, The Hartford, Liberty Mutual and State Farm. National associations like AAA -- in Southern California and Northern California -- and AARP are also good sources for affordable auto insurance in California.

Get car insurance in California from local and regional companies In California, auto insurance rates can vary dramatically; for some of the most affordable, consider locally based providers.

I recommend:  For automotive insurance in California, try California-based companies like Fireman's Fund Insurance Company, Mercury Insurance Group, Wawanesa Insurance and Danielson Indemnity Company. Also consider local programs, such as the California Automobile Assigned Risk Plan, which exists for drivers who can't easily find auto insurance in California, and the California Low Cost Automobile Insurance Program, which provides low-income drivers with affordable California auto insurance.

Use an independent agent to find California car insurance bargains Buying car insurance in California via an independent insurance agent can expose you to new resources, practical advice and special rates.

I recommend:  To find an independent agent who can sell you car insurance in California, use the “find a broker” feature at the Insurance Brokers & Agents of the West website.

Choose California auto insurance companies that you can trust Before doing business with California car insurance providers, review their records with consumers to make sure they are reliable, reputable and responsible.

I recommend:  If you subscribe to Consumer Reports, you can check up on car insurance companies in California. Another good resource is the California Department of Insurance, which licenses auto insurance companies in California and compiles statistics on complaints against them.

Tips & Tactics

Helpful advice for making the most of this Guide

• Consider buying more coverage than is required by state law; minimum California car insurance might not be enough to cover car repairs or medical bills after an accident.
• Penalties for drivers who don't have California car insurance include driver's license suspension, cash fines and vehicle impoundment.
• If you're leasing or financing your car, dealerships might require you to have more and better California auto insurance than is required by state law.
• Higher deductibles typically mean lower premiums and more monthly savings on auto insurance in California.
• Drivers can save up to 5 percent on auto insurance in California if they drive a factory-built hybrid vehicle or a car that runs on alternative fuel.
• In lieu of auto insurance in California, drivers can opt to make a cash deposit of $35,000 with the DMV or obtain a surety bond for the same amount from a licensed California car insurance company.