The answer to that question is no, you aren’t required to purchase comprehensive insurance coverage. This type of auto insurance is required by banks, so that if you are making payments on a car it is covered in the event of an accident. However, you are still required by California state law to purchase liability auto insurance. All drivers must carry liability insurance to protect other drivers (or even pedestrians) in the event that they cause an accident.
A liability insurance policy compensates a person other than the policy holder for personal injury and/or damage to property. California’s Financial Responsibility law requires all drivers to maintain liability auto insurance in the following minimum amounts:
- $15,000 for injury or death to one person
- $30,000 for injury or death to more than one person
- $5,000 for damage to property
Insurance policies which provide these minimum liability limits are often referred to as 15/30/5 policies. It’s important to remember that these are the minimum levels of insurance required by law, and beyond these amounts. For that reason many drivers decide to purchase liability auto insurance coverage in greater amounts.
Like all types of insurance, your liability auto insurance premiums will be based upon your level of risk as determined by your insurance company. A poor driving record, past convictions such as a DUI, and maintaining at least the minimum required level of liability insurance at all times.