In California, the limits of liability for auto insurance refer to the maximum amount your insurance company will pay for damages or injuries caused by an accident where you are at fault. The state requires drivers to carry a minimum level of liability insurance to ensure that those who are harmed by your driving have a means of compensation. California’s minimum auto insurance requirements for liability coverage are set at 15/30/5. This means your policy must provide at least $15,000 in coverage for bodily injury per person, $30,000 for bodily injury per accident (if more than one person is injured), and $5,000 for property damage in an accident.
The first two numbers (15/30) pertain to bodily injury liability, which helps cover the medical expenses, lost wages, and other damages for people injured in an accident caused by you. The third number (5) refers to property damage liability, which covers the cost of repairs to another person’s vehicle or property if you are at fault. While these are the minimum required by law, they may not be enough to cover significant damages, especially in accidents involving severe injuries or expensive vehicles. Therefore, many drivers choose to purchase higher limits to ensure they are adequately protected from potentially devastating financial liabilities.
If you are involved in an accident and the damages exceed your policy limits, you could be personally responsible for the difference. This means if your insurance doesn’t cover the full cost of the other party’s damages, they may pursue you directly for the remaining balance. For this reason, it’s often recommended to carry higher liability limits, particularly for drivers with significant assets or those who want greater peace of mind. Additionally, if you are concerned about being underinsured, you may also consider adding optional coverage, such as umbrella insurance, to provide extra protection in the event of a major claim.
