California law requires that you have a way to cover costs related to damages or injuries you may have caused in a car accident. Purchasing liability car insurance is the simplest and most common way people choose to meet this requirement.
The minimum amount of liability insurance you must have on your policy is:
$15,000 for injury/death to one person.
$30,000 for injury/death to more than one person.
$5,000 for damage to property.
Other Car Insurance Coverage
While liability coverage is the only type of car insurance coverage you are required to carry in California, there are several other types of coverage available to you, including:
Comprehensive coverage – This coverage insures you against damages that might occur to your car that do not involve traffic accidents such as theft-related damage.
Collision coverage – This insures you against damages to your car that occur as a result of a traffic collision such as an accident with another driver.
Medical and funeral services coverage.
Uninsured/Underinsured motorist coverage – According to the latest statistics from the California Department of Insurance (CDI), in 2004, 14.43% of California drivers had no car insurance. Uninsured/underinsured coverage can cover damages caused by one of these drivers.
Rental car coverage.
Towing and labor coverage.
* California Car Insurance information comes from DMV.org