How Much Car Insurance Do You Really Need?
A car is too convenient a means of transportation to give up, but it also carries with it significant liability, including legal liability. In California, as in most states, having car insurance is not an option, but a legal requirement. But how do you know how much insurance coverage you really need to be protected and not overpay?
The Xtreet team not only helps with car registration, stickers, and title transfers, but also strives to make car ownership safer and smarter. In this article, we will tell you what level of insurance is required by California law, what additional options you may need, and how to make the right decision for your situation.
Mandatory minimum insurance in California
According to state law (California Insurance Code §11580.1b), the minimum auto insurance that every car owner must have includes:
- $30,000 for bodily injury or death to one person,
- $60,000 for bodily injury or death of two or more persons,
- $15,000 for property damage.
This basic package allows you to legally drive a car, but in practice, it is very limited protection. The cost of vehicle repairs or treatment after an accident often far exceeds these amounts.
What kind of car insurance do you really need?
The Xtreet team's advice is simple: insurance should be tailored to your lifestyle, income, and the value of your car. Here are some important components to add to your basic plan:
- Collision Coverage - covers the cost of repairing or replacing your car, even if you are at fault in an accident.
- Comprehensive Coverage - protects you from losses not related to an accident: theft, fire, and natural disasters.
- Uninsured/Underinsured Motorist Coverage - protects you in case the culprit of the accident does not have insurance or his/her policy does not cover enough.
- Medical Payments / Personal Injury Protection (PIP) - covers the cost of medical treatment for you and your passengers.
Xtreet recommends: how to choose the right car insurance
Remember: insurance is not a waste, but an investment in your safety and financial stability.
- If your car is new or leased, choose full coverage (comprehensive + collision).
- If you often drive long distances, add PIP and uninsured motorist.
- If you have a limited budget, choose a reasonable compromise: slightly higher than the minimum, but with collision insurance.
Common mistakes when choosing car insurance
- Relying only on the minimum. In the event of an accident, this can result in thousands of dollars in damages.
- Not updating your policy after buying a new car or changing your income.
- Ignoring additional options, such as protection against uninsured drivers.
Car insurance is the basis of your safety on the road. Don't limit yourself to the minimum requirements. Los Angeles roads are always full of cars and their associated threats, so consider the possibility of a serious accident and choose coverage that really works for you.
At Xtreet, we are committed to making driving in California easier and safer. While we're taking care of your registration or transfer of ownership, let us take care of your insurance coverage.