California car insurance requirements dictate that owners of motor vehicles should have insurance coverage that covers bodily and property damage that may result from an accident. There are minimums, which are supposed to be deposited by these vehicle owners, to compensate the victims. If the accident has involved one person, the liability owed is $15,000. If there was more than one person involved in the accident, the driver will have to meet a total cost of $30,000 regardless of the people involved in the accident. There is also an additional $5,000 required to meet the compensation costs. This is the minimum amount required to compensate for property destruction or injury that may occur per accident.

California also has optional car insurance that features uninsured motorist coverage. California law requirements demand that people who opt to use this alternative should still purchase a policy that covers at least the minimum amount required in case of an accident. In case the drivers have purchased a bodily injury policy that is over estimated, they are then allowed to buy underinsured policies at lower costs. The laws of California do not require insurance companies to give the uninsured motorists policies that are worth more than $30,000 per personal injury. The maximum amount that is allowed for many people involved in an accident is $60,000 per accident.

When motorists have purchased uninsured insurance policies, California law requires the clients to purchase underinsurance policy as well. The underinsurance that is purchased is supposed to be equal in amount to the uninsured policy purchased. However, motorists are allowed to let the underinsured insurance policy be more than the uninsured policy they have already purchased if the motorist wishes to do this.

California requires 12/30/5 limits. These limits translate to $20,000 for body injuries sustained per person. An additional $30,000 is required to meet the cost of body injuries sustained per injury. This amount is the one that is used for compensating the victim’s medical bills and lost income. The digit 5 represents $5,000 for property destruction or injury caused upon it in every accident. This amount is used for repairing the items destroyed during the accident.

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