According to California Car insurance laws if you drive a car in California, you must be financially responsible for your actions. All drivers must show their ability to pay for damages or injury to others resulting from the ownership or operation of a motor vehicle. The statutory minimum limits of automobile liability insurance in California are as follows: Bodily Injury $15,000 for death or injury of any one person, any one accident. $30,000 for all persons in any one accident. Under this law Californians are now able to purchase low cost, reduced limit, automobile liability coverage. The California Low Cost Automobile Insurance Program is a pilot program which will satisfy the financial responsibility laws of the State of California.

Under California Car insurance laws, all California drivers and owners must have at least the statutory limits of minimum auto liability insurance or an approved alternative way to pay for injury or property damage they may cause. Penalties are very severe for non-compliance with this section of the vehicle code. When your car is in an accident for which you are found legally liable, Bodily Injury liability covers your liability to others for injuries to them. Property Damage liability covers your liability for damage to someone else's property. A policy with BI of $15,000/$30,000 and PD of $5,000 will pay out as follows: The maximum limit for one person's injuries, medical expenses is $15,000 under the bodily injury portion; If two or more people are injured, the maximum limit for the accident will be $30,000; The maximum limit for damage to other people's property is $5,000.

The most common way drivers choose to comply with the financial responsibility requirement is by purchasing an automobile liability insurance policy. If you have an accident not covered by insurance, then your license may be suspended. Under California car insurance laws, it is your responsibility to provide liability insurance for any vehicle you own regardless of who is operating the vehicle. It is illegal for those vehicles to be operated without meeting the requirements of this law. You could be paying hundreds of dollars too much on your car insurance and you'll never know it unless you shop around and get quotes from some of the lowest cost car insurance companies.