By law, all California motor vehicle owners must carry insurance which provides for both bodily injury coverage while also covering property damage.

In the state of California, the mandatory minimum bodily injury coverage is $15,000 per person per accident and $30,000 coverage for all persons who might be injured in any one accident. Additionally, minimum coverage for property damage is $5,000 per any one accident.

One possible optional insurance choice might be Uninsured Motorist Coverage. Should the policy holder select this plan then the actual minimum coverage will be the same amount as the required Bodily Injury Coverage. Should the policy holder's purchase exceed the required amount of Bodily Injury Coverage, Underinsured Motorist Coverage is allowed to be purchased in a smaller amount. California, as a state, doesn't mandate that insurance companies provide Uninsured Motorist Coverage in any amount greater than $30,000 per personal injury per accident and $60,000 for all persons involved in any one accident.

Additionally, if uninsured motorist coverage is purchased, then the policy must also include underinsured motorist coverage. California requires insurance companies to offer underinsured motorist coverage in an amount equal to that purchased for uninsured motorist coverage. Insurance companies can, however, propose an increased amount of underinsured motorist coverage than the actual amount of uninsured motorist coverage purchased by said policy holder.

California compels liability limits of 20/30/5 which represents $20,000 for bodily injury coverage per person and up to $30,000 total for bodily injury coverage per accident. This in particular is designed to pay for doctor's bills and lost wages. The final number in the sequence, 5, represents a maximum of $5,000 for property damage coverage per accident. This will compensate for repairs and/or replacement of items broken or wrecked, not including the policy holder's personal car or truck.

On a final note: Neither personal injury protection (PIP) nor no-fault coverage are California requirements. On top of that, in California, adding collision coverage as well as comprehensive coverage to your auto insurance policy is optional, too.

Author: eric.weeks

About the author:
Eric Weeks, a former 15 year financial planning veteran, is a leading expert on California auto insurance and cheap California auto insurance since 1989. Visit these links to learn how you can get the best deal on California auto insurance.

Article source: Free Automotive Articles.